diff --git a/pkg/crc/services/dns/dns.go b/pkg/crc/services/dns/dns.go
index a8c79608d8..fd1fb739ec 100644
--- a/pkg/crc/services/dns/dns.go
+++ b/pkg/crc/services/dns/dns.go
@@ -20,9 +20,8 @@ import (
 
 const (
 	dnsServicePort    = 53
-	dnsContainerIP    = "10.88.0.8"
 	publicDNSQueryURI = "quay.io"
-	crcDnsmasqService = "crc-dnsmasq.service"
+	dnsmasqService    = "dnsmasq.service"
 )
 
 func init() {
@@ -54,12 +53,12 @@ func setupDnsmasq(serviceConfig services.ServicePostStartConfig) error {
 		return err
 	}
 	sd := systemd.NewInstanceSystemdCommander(serviceConfig.SSHRunner)
-	if state, err := sd.Status(crcDnsmasqService); err != nil || state != states.Running {
-		if err := sd.Enable(crcDnsmasqService); err != nil {
+	if state, err := sd.Status(dnsmasqService); err != nil || state != states.Running {
+		if err := sd.Enable(dnsmasqService); err != nil {
 			return err
 		}
 	}
-	return sd.Start(crcDnsmasqService)
+	return sd.Start(dnsmasqService)
 }
 
 func getResolvFileValues(serviceConfig services.ServicePostStartConfig) (network.ResolvFileValues, error) {
@@ -89,7 +88,7 @@ func dnsServers(serviceConfig services.ServicePostStartConfig) ([]network.NameSe
 	if err != nil {
 		return nil, err
 	}
-	return append([]network.NameServer{{IPAddress: dnsContainerIP}}, orgResolvValues.NameServers...), nil
+	return append([]network.NameServer{{IPAddress: serviceConfig.IP}}, orgResolvValues.NameServers...), nil
 }
 
 func CheckCRCLocalDNSReachable(ctx context.Context, serviceConfig services.ServicePostStartConfig) (string, error) {
diff --git a/pkg/crc/services/dns/template.go b/pkg/crc/services/dns/template.go
index 95e6181a82..8db3824fd6 100644
--- a/pkg/crc/services/dns/template.go
+++ b/pkg/crc/services/dns/template.go
@@ -8,9 +8,7 @@ import (
 )
 
 const (
-	dnsmasqConfTemplate = `user=root
-port= {{ .Port }}
-bind-interfaces
+	dnsmasqConfTemplate = `listen-address={{ .IP }}
 expand-hosts
 log-queries
 local=/{{ .ClusterName}}.{{ .BaseDomain }}/
@@ -38,7 +36,6 @@ func createDnsmasqDNSConfig(serviceConfig services.ServicePostStartConfig) error
 	dnsmasqConfFileValues := dnsmasqConfFileValues{
 		BaseDomain:  domain,
 		Hostname:    serviceConfig.BundleMetadata.Nodes[0].Hostname,
-		Port:        dnsServicePort,
 		AppsDomain:  serviceConfig.BundleMetadata.ClusterInfo.AppsDomain,
 		ClusterName: serviceConfig.BundleMetadata.ClusterInfo.ClusterName,
 		IP:          serviceConfig.IP,
@@ -50,7 +47,7 @@ func createDnsmasqDNSConfig(serviceConfig services.ServicePostStartConfig) error
 		return err
 	}
 
-	return serviceConfig.SSHRunner.CopyDataPrivileged([]byte(dnsConfig), "/var/srv/dnsmasq.conf", 0644)
+	return serviceConfig.SSHRunner.CopyDataPrivileged([]byte(dnsConfig), "/etc/dnsmasq.d/crc-dnsmasq.conf", 0644)
 }
 
 func createDNSConfigFile(values dnsmasqConfFileValues, tmpl string) (string, error) {