diff --git a/AGHTechDoc.md b/AGHTechDoc.md
index 8eba5ed6..e50982ba 100644
--- a/AGHTechDoc.md
+++ b/AGHTechDoc.md
@@ -22,7 +22,8 @@ Contents:
 	* Update client
 	* Delete client
 	* API: Find clients by IP
-* Enable DHCP server
+* DHCP server
+	* DHCP server in DNS
 	* "Show DHCP status" command
 	* "Check DHCP" command
 	* "Enable DHCP" command
@@ -375,9 +376,9 @@ Error response:
 UI shows error message "Auto-update has failed"
 
 
-## Enable DHCP server
+## DHCP server
 
-Algorithm:
+Enable DHCP server algorithm:
 
 * UI shows DHCP configuration screen with "Enabled DHCP" button disabled, and "Check DHCP" button enabled
 * User clicks on "Check DHCP"; UI sends request to server
@@ -389,6 +390,21 @@ Algorithm:
 * UI shows the status
 
 
+### DHCP server in DNS
+
+DHCP leases are used in several ways by DNS module.
+
+* For "A" DNS reqeust we reply with an IP address leased by our DHCP server.
+
+		< A bills-notebook.lan.
+		> A bills-notebook.lan. = 192.168.1.100
+
+* For "PTR" DNS request we reply with a hostname from an active DHCP lease.
+
+		< PTR 100.1.168.192.in-addr.arpa.
+		> PTR 100.1.168.192.in-addr.arpa. = bills-notebook.
+
+
 ### "Show DHCP status" command
 
 Request:
diff --git a/dnsforward/handle_dns.go b/dnsforward/handle_dns.go
index 6860dcf3..1495e736 100644
--- a/dnsforward/handle_dns.go
+++ b/dnsforward/handle_dns.go
@@ -94,6 +94,20 @@ func processInitial(ctx *dnsContext) int {
 	return resultDone
 }
 
+// Return TRUE if host names doesn't contain disallowed characters
+func isHostnameOK(hostname string) bool {
+	for _, c := range hostname {
+		if !((c >= 'a' && c <= 'z') ||
+			(c >= 'A' && c <= 'Z') ||
+			(c >= '0' && c <= '9') ||
+			c == '.' || c == '-') {
+			log.Debug("DNS: skipping invalid hostname %s from DHCP", hostname)
+			return false
+		}
+	}
+	return true
+}
+
 func (s *Server) onDHCPLeaseChanged(flags int) {
 	switch flags {
 	case dhcpd.LeaseChangedAdded,
@@ -110,15 +124,17 @@ func (s *Server) onDHCPLeaseChanged(flags int) {
 	ll := s.dhcpServer.Leases(dhcpd.LeasesAll)
 
 	for _, l := range ll {
-		if len(l.Hostname) == 0 {
+		if len(l.Hostname) == 0 || !isHostnameOK(l.Hostname) {
 			continue
 		}
 
-		m[l.IP.String()] = l.Hostname
+		lowhost := strings.ToLower(l.Hostname)
+
+		m[l.IP.String()] = lowhost
 
 		ip := make(net.IP, 4)
 		copy(ip, l.IP.To4())
-		hostToIP[l.Hostname] = ip
+		hostToIP[lowhost] = ip
 	}
 
 	log.Debug("DNS: added %d A/PTR entries from DHCP", len(m))