diff --git a/NetworkManager.spec b/NetworkManager.spec
index 5a0b039..ac5726e 100644
--- a/NetworkManager.spec
+++ b/NetworkManager.spec
@@ -19,7 +19,7 @@ Name: NetworkManager
 Summary: Network connection manager and user applications
 Epoch: 1
 Version: 0.9.7.0
-Release: 7%{snapshot}%{?dist}
+Release: 8%{snapshot}%{?dist}
 Group: System Environment/Base
 License: GPLv2+
 URL: http://www.gnome.org/projects/NetworkManager/
@@ -31,6 +31,7 @@ Patch2: nss-error.patch
 Patch3: finish-connecting.patch
 Patch4: gvaluearray-crash.patch
 Patch5: udev-uninitialized-devices.patch
+Patch6: rh875085-set-hostname.patch
 BuildRoot: %{_tmppath}/%{name}-%{version}-%{release}-root-%(%{__id_u} -n)
 
 Requires(post): chkconfig
@@ -157,6 +158,7 @@ NetworkManager functionality from applications that use glib.
 %patch3 -p1 -b .finish-connecting
 %patch4 -p1 -b .gvaluearray
 %patch5 -p1 -b .udev-uninitialized
+%patch6 -p1 -b .set-hostname
 
 %build
 
@@ -354,6 +356,9 @@ exit 0
 %{_datadir}/gtk-doc/html/libnm-util/*
 
 %changelog
+* Tue Nov 27 2012 Jiří Klimeš <jklimes@redhat.com> - 0.9.7.0-8.git20121004
+- Apply patch from master to update hostname (rh #875085)
+
 * Tue Nov 27 2012 Daniel Drake <dsd@laptop.org> - 0.9.7.0-7.git20121004
 - Don't bring up uninitialized devices (fd #56929)
 
diff --git a/rh875085-set-hostname.patch b/rh875085-set-hostname.patch
new file mode 100644
index 0000000..e959746
--- /dev/null
+++ b/rh875085-set-hostname.patch
@@ -0,0 +1,52 @@
+From 48d9bc40fb85afc8044b16400adbca7c8ff71a80 Mon Sep 17 00:00:00 2001
+From: =?UTF-8?q?Ji=C5=99=C3=AD=20Klime=C5=A1?= <jklimes@redhat.com>
+Date: Wed, 14 Nov 2012 14:48:07 +0100
+Subject: [PATCH 1/2] policy: fix setting system hostname (rh #875085)
+MIME-Version: 1.0
+Content-Type: text/plain; charset=UTF-8
+Content-Transfer-Encoding: 8bit
+
+Broken by commit 500315329765831d242d51d6a46f1e05869c15d2
+(core: move DNS change handling to the policy and optimize DNS updates (bgo #676778))
+It consolidated DNS update handling, but mistakenly removed hostname changing
+from NM_DEVICE_STATE_ACTIVATED state handler.
+
+Signed-off-by: Jiří Klimeš <jklimes@redhat.com>
+---
+ src/nm-policy.c | 14 ++++----------
+ 1 file changed, 4 insertions(+), 10 deletions(-)
+
+diff --git a/src/nm-policy.c b/src/nm-policy.c
+index c847586..ca7e0dc 100644
+--- a/src/nm-policy.c
++++ b/src/nm-policy.c
+@@ -1430,22 +1430,16 @@ device_state_changed (NMDevice *device,
+ 		nm_dns_manager_begin_updates (dns_mgr, __func__);
+ 
+ 		ip4_config = nm_device_get_ip4_config (device);
+-		if (ip4_config) {
++		if (ip4_config)
+ 			nm_dns_manager_add_ip4_config (dns_mgr, ip_iface, ip4_config, NM_DNS_IP_CONFIG_TYPE_DEFAULT);
+-			update_ip4_dns (policy, dns_mgr);
+-		}
+ 		ip6_config = nm_device_get_ip6_config (device);
+-		if (ip6_config) {
++		if (ip6_config)
+ 			nm_dns_manager_add_ip6_config (dns_mgr, ip_iface, ip6_config, NM_DNS_IP_CONFIG_TYPE_DEFAULT);
+-			update_ip6_dns (policy, dns_mgr);
+-		}
++
++		update_routing_and_dns (policy, FALSE);
+ 
+ 		nm_dns_manager_end_updates (dns_mgr, __func__);
+ 		g_object_unref (dns_mgr);
+-
+-		/* And make sure the best devices have the default route */
+-		update_ip4_routing (policy, FALSE);
+-		update_ip6_routing (policy, FALSE);
+ 		break;
+ 	case NM_DEVICE_STATE_UNMANAGED:
+ 	case NM_DEVICE_STATE_UNAVAILABLE:
+-- 
+1.7.11.7
+