diff --git a/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java b/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java
index c2902b1c7f8..7f4a2642686 100755
--- a/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java
+++ b/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java
@@ -2137,7 +2137,7 @@ public class VirtualNetworkApplianceManagerImpl extends ManagerBase implements V
 
             boolean useExtDns = !dnsProvided;
             /* For backward compatibility */
-            useExtDns = UseExternalDnsServers.valueIn(dc.getId());
+            useExtDns = useExtDns || UseExternalDnsServers.valueIn(dc.getId());
 
             if (useExtDns) {
                 buf.append(" useextdns=true");
diff --git a/systemvm/patches/debian/config/etc/init.d/cloud-early-config b/systemvm/patches/debian/config/etc/init.d/cloud-early-config
index d4bf0eb3d92..05661fc2a99 100755
--- a/systemvm/patches/debian/config/etc/init.d/cloud-early-config
+++ b/systemvm/patches/debian/config/etc/init.d/cloud-early-config
@@ -715,6 +715,12 @@ setup_dnsmasq() {
   then
     [ $ETH0_IP ] && NS="$INTERNAL_DNS,$NS"
     [ $ETH0_IP6 ] && NS6="[::],$NS6"
+    # enable dns
+    sed -i -e "/^[#]*port=.*$/d" /etc/dnsmasq.conf
+  else
+    # disable dns
+    sed -i -e "/^[#]*port=.*$/d" /etc/dnsmasq.conf
+    echo "port=0" >> /etc/dnsmasq.conf
   fi
   NS=${NS%?}
   NS6=${NS6%?}