diff --git a/package/network/services/dnsmasq/Makefile b/package/network/services/dnsmasq/Makefile
index cd74d04785..d7f14f98ad 100644
--- a/package/network/services/dnsmasq/Makefile
+++ b/package/network/services/dnsmasq/Makefile
@@ -9,7 +9,7 @@ include $(TOPDIR)/rules.mk
 
 PKG_NAME:=dnsmasq
 PKG_VERSION:=2.77
-PKG_RELEASE:=8
+PKG_RELEASE:=9
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.xz
 PKG_SOURCE_URL:=http://thekelleys.org.uk/dnsmasq/
diff --git a/package/network/services/dnsmasq/files/dnsmasq.init b/package/network/services/dnsmasq/files/dnsmasq.init
index 4f539f9ba7..533945c2a4 100644
--- a/package/network/services/dnsmasq/files/dnsmasq.init
+++ b/package/network/services/dnsmasq/files/dnsmasq.init
@@ -322,12 +322,17 @@ dhcp_host_add() {
 			hex_to_hostid hostid "$hostid"
 	fi
 
+	tags=""
+	if [ -n "$tag" ]; then
+		for t in $tag; do append tags "$t" ",set:"; done
+	fi
+
 	config_get_bool broadcast "$cfg" broadcast 0
 	config_get leasetime "$cfg" leasetime
 
 	[ "$broadcast" = "0" ] && broadcast= || broadcast=",set:needs-broadcast"
 
-	hosttag="${networkid:+,set:${networkid}}${tag:+,set:${tag}}$broadcast"
+	hosttag="${networkid:+,set:${networkid}}${tags:+,set:${tags}}$broadcast"
 	nametime="${name:+,$name}${leasetime:+,$leasetime}"
 
 	if [ $DNSMASQ_DHCP_VER -eq 6 ]; then