diff --git a/vmware_nsx/extension_drivers/dns_integration.py b/vmware_nsx/extension_drivers/dns_integration.py
index b349fe65a4..dedd74ab1e 100644
--- a/vmware_nsx/extension_drivers/dns_integration.py
+++ b/vmware_nsx/extension_drivers/dns_integration.py
@@ -323,27 +323,34 @@ class DNSExtensionDriverNSXv3(DNSExtensionDriver):
         self._availability_zones = nsx_az.NsxV3AvailabilityZones()
         LOG.info("DNSExtensionDriverNSXv3 initialization complete")
 
-    def _get_network_az(self, network_id, context):
+    def _get_network_and_az(self, network_id, context):
         if not context:
             context = n_context.get_admin_context()
         network = self._get_network(context, network_id)
         if az_def.AZ_HINTS in network and network[az_def.AZ_HINTS]:
             az_name = network[az_def.AZ_HINTS][0]
-            return self._availability_zones.get_availability_zone(az_name)
-        return self._availability_zones.get_default_availability_zone()
+            az = self._availability_zones.get_availability_zone(az_name)
+            return network, az
+        az = self._availability_zones.get_default_availability_zone()
+        return network, az
 
     def _get_dns_domain(self, network_id, context=None):
+        # first try to get the dns_domain configured on the network
+        net, az = self._get_network_and_az(network_id, context)
+        if net.get('dns_domain'):
+            return _dotted_domain(net['dns_domain'])
         # try to get the dns-domain from the specific availability zone
         # of this network
-        az = self._get_network_az(network_id, context)
         if (az.dns_domain and
             _dotted_domain(az.dns_domain) !=
             _dotted_domain(DNS_DOMAIN_DEFAULT)):
             dns_domain = az.dns_domain
+        # Global nsx_v3 dns domain
         elif (cfg.CONF.nsx_v3.dns_domain and
               (_dotted_domain(cfg.CONF.nsx_v3.dns_domain) !=
                _dotted_domain(DNS_DOMAIN_DEFAULT))):
             dns_domain = cfg.CONF.nsx_v3.dns_domain
+        # Global neutron dns domain
         elif cfg.CONF.dns_domain:
             dns_domain = cfg.CONF.dns_domain
         else:
diff --git a/vmware_nsx/tests/unit/extension_drivers/test_dns_integration.py b/vmware_nsx/tests/unit/extension_drivers/test_dns_integration.py
index 47898554d4..6956bd973d 100644
--- a/vmware_nsx/tests/unit/extension_drivers/test_dns_integration.py
+++ b/vmware_nsx/tests/unit/extension_drivers/test_dns_integration.py
@@ -100,3 +100,18 @@ class NsxV3DNSIntegrationTestCase(NsxDNSIntegrationTestCase,
         cfg.CONF.set_override('nsx_extension_drivers', ['vmware_nsxv3_dns'])
         cfg.CONF.set_override('dns_domain', self._domain, 'nsx_v3')
         super(NsxV3DNSIntegrationTestCase, self).setUp()
+
+    def test_create_port_dns_domain_name(self):
+        with self.network(dns_domain=NETWORK_DOMAIN_NAME,
+                          arg_list=(dns.DNSDOMAIN,)) as network,\
+            self.subnet(network=network, cidr='10.0.0.0/24') as subnet,\
+            self.port(subnet=subnet, dns_name=PORT_DNS_NAME,
+                      arg_list=(dns.DNSNAME,)) as port:
+            port_data = port['port']
+            dns_assignment = port_data[dns.DNSASSIGNMENT][0]
+            self.assertEqual(PORT_DNS_NAME, port_data[dns.DNSNAME])
+            self.assertEqual(PORT_DNS_NAME, dns_assignment['hostname'])
+            self.assertEqual(port_data['fixed_ips'][0]['ip_address'],
+                             dns_assignment['ip_address'])
+            self.assertEqual(PORT_DNS_NAME + '.' + NETWORK_DOMAIN_NAME,
+                             dns_assignment['fqdn'])