diff --git a/package/network/services/dnsmasq/Makefile b/package/network/services/dnsmasq/Makefile
index 4086aa25e06..ba10ded333a 100644
--- a/package/network/services/dnsmasq/Makefile
+++ b/package/network/services/dnsmasq/Makefile
@@ -10,7 +10,7 @@ include $(TOPDIR)/rules.mk
 PKG_NAME:=dnsmasq
 PKG_UPSTREAM_VERSION:=2.82
 PKG_VERSION:=$(subst test,~~test,$(subst rc,~rc,$(PKG_UPSTREAM_VERSION)))
-PKG_RELEASE:=9
+PKG_RELEASE:=10
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_UPSTREAM_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 7ecc542b446..680e72f9e77 100644
--- a/package/network/services/dnsmasq/files/dnsmasq.init
+++ b/package/network/services/dnsmasq/files/dnsmasq.init
@@ -769,6 +769,29 @@ dhcp_relay_add() {
 	fi
 }
 
+dnsmasq_ipset_add() {
+	local cfg="$1"
+	local ipsets domains
+
+	add_ipset() {
+		ipsets="${ipsets:+$ipsets,}$1"
+	}
+
+	add_domain() {
+		# leading '/' is expected
+		domains="$domains/$1"
+	}
+
+	config_list_foreach "$cfg" "name" add_ipset
+	config_list_foreach "$cfg" "domain" add_domain
+
+	if [ -z "$ipsets" ] || [ -z "$domains" ]; then
+		return 0
+	fi
+
+	xappend "--ipset=$domains/$ipsets"
+}
+
 dnsmasq_start()
 {
 	local cfg="$1"
@@ -1056,6 +1079,10 @@ dnsmasq_start()
 	config_foreach filter_dnsmasq cname dhcp_cname_add "$cfg"
 	echo >> $CONFIGFILE_TMP
 
+	echo >> $CONFIGFILE_TMP
+	config_foreach filter_dnsmasq ipset dnsmasq_ipset_add "$cfg"
+	echo >> $CONFIGFILE_TMP
+
 	echo >> $CONFIGFILE_TMP
 	mv -f $CONFIGFILE_TMP $CONFIGFILE
 	mv -f $HOSTFILE_TMP $HOSTFILE