diff --git a/src/libsystemd-network/sd-dhcp-client.c b/src/libsystemd-network/sd-dhcp-client.c
index 29b22eed456..d30755115e6 100644
--- a/src/libsystemd-network/sd-dhcp-client.c
+++ b/src/libsystemd-network/sd-dhcp-client.c
@@ -415,9 +415,9 @@ int sd_dhcp_client_set_hostname(
 
         assert_return(client, -EINVAL);
 
-        /* Refuse hostnames that neither qualify as DNS nor as Linux hosntames */
+        /* Make sure hostnames qualify as DNS and as Linux hostnames */
         if (hostname &&
-            !(hostname_is_valid(hostname, false) || dns_name_is_valid(hostname) > 0))
+            !(hostname_is_valid(hostname, false) && dns_name_is_valid(hostname) > 0))
                 return -EINVAL;
 
         return free_and_strdup(&client->hostname, hostname);
diff --git a/src/libsystemd-network/test-dhcp-client.c b/src/libsystemd-network/test-dhcp-client.c
index e4ef479a546..e71f2a4d1d2 100644
--- a/src/libsystemd-network/test-dhcp-client.c
+++ b/src/libsystemd-network/test-dhcp-client.c
@@ -75,6 +75,12 @@ static void test_request_basic(sd_event *e) {
         assert_se(sd_dhcp_client_set_ifindex(client, 0) == -EINVAL);
         assert_se(sd_dhcp_client_set_ifindex(client, 1) == 0);
 
+        assert_se(sd_dhcp_client_set_hostname(client, "host") == 1);
+        assert_se(sd_dhcp_client_set_hostname(client, "host.domain") == 1);
+        assert_se(sd_dhcp_client_set_hostname(client, NULL) == 1);
+        assert_se(sd_dhcp_client_set_hostname(client, "~host") == -EINVAL);
+        assert_se(sd_dhcp_client_set_hostname(client, "~host.domain") == -EINVAL);
+
         assert_se(sd_dhcp_client_set_request_option(client,
                                         SD_DHCP_OPTION_SUBNET_MASK) == -EEXIST);
         assert_se(sd_dhcp_client_set_request_option(client,