diff --git a/elements/puppet-stack-config/puppet-stack-config.pp b/elements/puppet-stack-config/puppet-stack-config.pp
index cb42409c8..9770ef044 100644
--- a/elements/puppet-stack-config/puppet-stack-config.pp
+++ b/elements/puppet-stack-config/puppet-stack-config.pp
@@ -380,9 +380,11 @@ include ::nova::scheduler
 include ::nova::scheduler::filter
 include ::nova::compute
 
+$neutron_dns_domain = pick(hiera('overcloud_domain_name', $::domain), $::os_service_default)
 class { '::neutron':
   rabbit_hosts => [hiera('controller_host')],
   debug        => hiera('debug'),
+  dns_domain   => $neutron_dns_domain
 }
 
 include ::neutron::server
@@ -491,7 +493,9 @@ nova_config {
 }
 
 include ::nova::compute::ironic
-include ::nova::network::neutron
+class { '::nova::network::neutron':
+  dhcp_domain => $neutron_dns_domain
+}
 
 # Ironic
 
diff --git a/elements/puppet-stack-config/puppet-stack-config.yaml.template b/elements/puppet-stack-config/puppet-stack-config.yaml.template
index 6c727cde8..806cfa8e3 100644
--- a/elements/puppet-stack-config/puppet-stack-config.yaml.template
+++ b/elements/puppet-stack-config/puppet-stack-config.yaml.template
@@ -11,6 +11,8 @@ ntp::servers: {{UNDERCLOUD_NTP_SERVERS}}
 
 sysctl_settings: {{SYSCTL_SETTINGS}}
 
+overcloud_domain_name: {{OVERCLOUD_DOMAIN_NAME}}
+
 # SSL
 tripleo::haproxy::service_certificate: {{UNDERCLOUD_SERVICE_CERTIFICATE}}
 generate_service_certificates: {{GENERATE_SERVICE_CERTIFICATE}}
@@ -237,7 +239,6 @@ neutron::debug: "%{hiera('debug')}"
 neutron::bind_host: {{LOCAL_IP}}
 neutron::core_plugin: ml2
 neutron::dhcp_agents_per_network: 2
-neutron::dns_domain: {{OVERCLOUD_DOMAIN_NAME}}
 neutron::server::api_workers: "%{::os_workers}"
 neutron::server::rpc_workers: "%{::os_workers}"
 neutron::rabbit_password: {{UNDERCLOUD_RABBIT_PASSWORD}}
@@ -405,7 +406,6 @@ nova::api_database_connection: mysql+pymysql://nova_api:{{UNDERCLOUD_NOVA_PASSWO
 nova::placement_database_connection: mysql+pymysql://nova_placement:{{UNDERCLOUD_NOVA_PASSWORD}}@{{LOCAL_IP}}/nova_placement
 nova::notify_on_state_change: 'vm_and_task_state'
 nova::scheduler::enabled: true
-nova::network::neutron::dhcp_domain: {{OVERCLOUD_DOMAIN_NAME}}
 nova::compute::force_config_drive: true
 nova::compute::reserved_host_memory: '0'
 nova::compute::vnc_enabled: false
diff --git a/instack_undercloud/undercloud.py b/instack_undercloud/undercloud.py
index 6ae0859f4..e22fa7604 100644
--- a/instack_undercloud/undercloud.py
+++ b/instack_undercloud/undercloud.py
@@ -152,10 +152,12 @@ _opts = [
                 default=[],
                 help=('List of ntp servers to use.')),
     cfg.StrOpt('overcloud_domain_name',
-               default='localdomain',
+               default='',
                help=('DNS domain name to use when deploying the overcloud. '
                      'The overcloud parameter "CloudDomain" must be set to a '
-                     'matching value.')
+                     'matching value. When unset, the installation will try '
+                     'to use the undercloud\'s domain name, and if that fails '
+                     'it\'ll use the default from neutron.conf.')
                ),
     cfg.StrOpt('undercloud_service_certificate',
                default='',
diff --git a/releasenotes/notes/Make-dns_domain-configurable-1411b51b65b83ded.yaml b/releasenotes/notes/Make-dns_domain-configurable-1411b51b65b83ded.yaml
new file mode 100644
index 000000000..40843dc65
--- /dev/null
+++ b/releasenotes/notes/Make-dns_domain-configurable-1411b51b65b83ded.yaml
@@ -0,0 +1,7 @@
+---
+features:
+  - the dns_domain parameter in neutron.conf is now configurable through the
+    overcloud_domain_name configuration parameter in undercloud.conf. In the
+    absence of this parameter, the installation will try to use the domain
+    from the undercloud, and if this fails, it will then just use the default
+    from neutron.conf.