diff --git a/lib/ovn-l7.h b/lib/ovn-l7.h
index 5e33d619c..9a33f5cda 100644
--- a/lib/ovn-l7.h
+++ b/lib/ovn-l7.h
@@ -81,6 +81,7 @@ struct gen_opts_map {
 #define DHCP_OPT_DNS_SERVER  DHCP_OPTION("dns_server", 6, "ipv4")
 #define DHCP_OPT_LOG_SERVER  DHCP_OPTION("log_server", 7, "ipv4")
 #define DHCP_OPT_LPR_SERVER  DHCP_OPTION("lpr_server", 9, "ipv4")
+#define DHCP_OPT_HOSTNAME    DHCP_OPTION("hostname", 12, "str")
 #define DHCP_OPT_DOMAIN_NAME DHCP_OPTION("domain_name", 15, "str")
 #define DHCP_OPT_SWAP_SERVER DHCP_OPTION("swap_server", 16, "ipv4")
 
diff --git a/northd/ovn-northd.c b/northd/ovn-northd.c
index c39d451ec..45486daac 100644
--- a/northd/ovn-northd.c
+++ b/northd/ovn-northd.c
@@ -4574,6 +4574,14 @@ build_dhcpv4_action(struct ovn_port *op, ovs_be32 offer_ip,
                   REGBIT_DHCP_OPTS_RESULT" = put_dhcp_opts(offerip = "
                   IP_FMT", ", IP_ARGS(offer_ip));
 
+    /* Try to get hostname DHCP option from ovn_port as it can be passed there
+     * instead of DHCP_Options set. Logical_Switch_Port options:hostname takes
+     precedence over DHCP_Options options:hostname. */
+    const char *hostname = smap_get(&op->nbsp->options, "hostname");
+    if (hostname) {
+        smap_replace(&dhcpv4_options, "hostname", hostname);
+    }
+
     /* We're not using SMAP_FOR_EACH because we want a consistent order of the
      * options on different architectures (big or little endian, SSE4.2) */
     const struct smap_node **sorted_opts = smap_sort(&dhcpv4_options);
@@ -13561,6 +13569,7 @@ static struct gen_opts_map supported_dhcp_opts[] = {
     DHCP_OPT_BOOTFILE,
     DHCP_OPT_PATH_PREFIX,
     DHCP_OPT_TFTP_SERVER_ADDRESS,
+    DHCP_OPT_HOSTNAME,
     DHCP_OPT_DOMAIN_NAME,
     DHCP_OPT_ARP_CACHE_TIMEOUT,
     DHCP_OPT_TCP_KEEPALIVE_INTERVAL,
diff --git a/ovn-nb.xml b/ovn-nb.xml
index cf1e3aac4..e107c9035 100644
--- a/ovn-nb.xml
+++ b/ovn-nb.xml
@@ -929,6 +929,15 @@
           If set, indicates the maximum burst size for data sent from this
           interface, in bits.
         </column>
+
+        <column name="options" key="hostname">
+          <p>
+            If set, indicates the DHCPv4 option "Hostname" (option code 12)
+            associated for this Logical Switch Port. If DHCPv4 is enabled for
+            this Logical Switch Port, hostname dhcp option will be included in
+            DHCP reply.
+          </p>
+        </column>
       </group>
 
       <group title="Virtual port Options">
@@ -3297,6 +3306,20 @@
           </p>
         </column>
 
+        <column name="options" key="hostname">
+          <p>
+            The DHCPv4 option code for this option is 12.
+            If set, indicates the DHCPv4 option "Hostname".
+            Alternatively, this option can be configured in 
+            <ref column="options:hostname" table="Logical_Switch_Port"
+            db="OVN_NB"/> column in table <ref table="Logical_Switch_Port"/>.
+            If Hostname option value is set in both conflicting
+            <ref table="Logical_Switch_Port"/> and
+            <ref table="DHCP_Options"/> tables,
+            <ref table="Logical_Switch_Port"/> takes precedence.
+          </p>
+        </column>
+
         <column name="options" key="domain_name">
           <p>
             The DHCPv4 option code for this option is 15. This option
diff --git a/tests/ovn.at b/tests/ovn.at
index 71d2bab4d..757e15972 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -1345,6 +1345,9 @@ reg2[5] = put_dhcp_opts(offerip=10.0.0.4,router=10.0.0.1,netmask=255.255.254.0,m
 reg2[5] = put_dhcp_opts(offerip=10.0.0.4,router=10.0.0.1,netmask=255.255.254.0,mtu=1400,domain_name="ovn.org",wpad="https://example.org",bootfile_name="https://127.0.0.1/boot.ipxe",path_prefix="/tftpboot",domain_search_list="ovn.org,abc.ovn.org,def.ovn.org,ovn.test,def.ovn.test,test.org,abc.com");
     formats as reg2[5] = put_dhcp_opts(offerip = 10.0.0.4, router = 10.0.0.1, netmask = 255.255.254.0, mtu = 1400, domain_name = "ovn.org", wpad = "https://example.org", bootfile_name = "https://127.0.0.1/boot.ipxe", path_prefix = "/tftpboot", domain_search_list = "ovn.org,abc.ovn.org,def.ovn.org,ovn.test,def.ovn.test,test.org,abc.com");
     encodes as controller(userdata=00.00.00.02.00.00.00.00.00.01.de.10.00.00.00.25.0a.00.00.04.43.1b.68.74.74.70.73.3a.2f.2f.31.32.37.2e.30.2e.30.2e.31.2f.62.6f.6f.74.2e.69.70.78.65.03.04.0a.00.00.01.01.04.ff.ff.fe.00.1a.02.05.78.0f.07.6f.76.6e.2e.6f.72.67.fc.13.68.74.74.70.73.3a.2f.2f.65.78.61.6d.70.6c.65.2e.6f.72.67.d2.09.2f.74.66.74.70.62.6f.6f.74.77.35.03.6f.76.6e.03.6f.72.67.00.03.61.62.63.c0.00.03.64.65.66.c0.00.03.6f.76.6e.04.74.65.73.74.00.03.64.65.66.c0.15.04.74.65.73.74.c0.04.03.61.62.63.03.63.6f.6d.00,pause)
+reg2[5] = put_dhcp_opts(offerip=10.0.0.4,router=10.0.0.1,netmask=255.255.254.0,mtu=1400,domain_name="ovn.org",hostname="ip-10-0-0-4");
+    formats as reg2[5] = put_dhcp_opts(offerip = 10.0.0.4, router = 10.0.0.1, netmask = 255.255.254.0, mtu = 1400, domain_name = "ovn.org", hostname = "ip-10-0-0-4");
+    encodes as controller(userdata=00.00.00.02.00.00.00.00.00.01.de.10.00.00.00.25.0a.00.00.04.03.04.0a.00.00.01.01.04.ff.ff.fe.00.1a.02.05.78.0f.07.6f.76.6e.2e.6f.72.67.0c.0b.69.70.2d.31.30.2d.30.2d.30.2d.34,pause)
 
 reg1[0..1] = put_dhcp_opts(offerip = 1.2.3.4, router = 10.0.0.1);
     Cannot use 2-bit field reg1[0..1] where 1-bit field is required.
diff --git a/tests/test-ovn.c b/tests/test-ovn.c
index 98cc2c503..a4701b4cb 100644
--- a/tests/test-ovn.c
+++ b/tests/test-ovn.c
@@ -168,6 +168,7 @@ create_gen_opts(struct hmap *dhcp_opts, struct hmap *dhcpv6_opts,
     dhcp_opt_add(dhcp_opts, "dns_server", 6, "ipv4");
     dhcp_opt_add(dhcp_opts, "log_server", 7, "ipv4");
     dhcp_opt_add(dhcp_opts, "lpr_server",  9, "ipv4");
+    dhcp_opt_add(dhcp_opts, "hostname", 12, "str");
     dhcp_opt_add(dhcp_opts, "domain_name", 15, "str");
     dhcp_opt_add(dhcp_opts, "swap_server", 16, "ipv4");
     dhcp_opt_add(dhcp_opts, "policy_filter", 21, "ipv4");
