diff --git a/cmd/up.go b/cmd/up.go
index fe8e7f51..3bb3accf 100644
--- a/cmd/up.go
+++ b/cmd/up.go
@@ -40,6 +40,11 @@ func UpCommand() cli.Command {
 			Name:  "dind-storage-driver",
 			Usage: "Storage driver for the docker in docker containers (experimental)",
 		},
+		cli.StringFlag{
+			Name:  "dind-dns-server",
+			Usage: "DNS resolver to be used by docker in docker container. Useful if host is running systemd-resovld",
+			Value: "8.8.8.8",
+		},
 		cli.BoolFlag{
 			Name:  "update-only",
 			Usage: "Skip idempotent deployment of control and etcd plane",
@@ -312,12 +317,12 @@ func clusterUpLocal(ctx *cli.Context) error {
 
 func clusterUpDind(ctx *cli.Context) error {
 	// get dind config
-	rkeConfig, disablePortCheck, dindStorageDriver, filePath, err := getDindConfig(ctx)
+	rkeConfig, disablePortCheck, dindStorageDriver, filePath, dindDNS, err := getDindConfig(ctx)
 	if err != nil {
 		return err
 	}
 	// setup dind environment
-	if err = createDINDEnv(context.Background(), rkeConfig, dindStorageDriver); err != nil {
+	if err = createDINDEnv(context.Background(), rkeConfig, dindStorageDriver, dindDNS); err != nil {
 		return err
 	}
 
@@ -338,23 +343,24 @@ func clusterUpDind(ctx *cli.Context) error {
 	return err
 }
 
-func getDindConfig(ctx *cli.Context) (*v3.RancherKubernetesEngineConfig, bool, string, string, error) {
+func getDindConfig(ctx *cli.Context) (*v3.RancherKubernetesEngineConfig, bool, string, string, string, error) {
 	disablePortCheck := ctx.Bool("disable-port-check")
 	dindStorageDriver := ctx.String("dind-storage-driver")
+	dindDNS := ctx.String("dind-dns-server")
 
 	clusterFile, filePath, err := resolveClusterFile(ctx)
 	if err != nil {
-		return nil, disablePortCheck, "", "", fmt.Errorf("Failed to resolve cluster file: %v", err)
+		return nil, disablePortCheck, "", "", "", fmt.Errorf("Failed to resolve cluster file: %v", err)
 	}
 
 	rkeConfig, err := cluster.ParseConfig(clusterFile)
 	if err != nil {
-		return nil, disablePortCheck, "", "", fmt.Errorf("Failed to parse cluster file: %v", err)
+		return nil, disablePortCheck, "", "", "", fmt.Errorf("Failed to parse cluster file: %v", err)
 	}
 
 	rkeConfig, err = setOptionsFromCLI(ctx, rkeConfig)
 	if err != nil {
-		return nil, disablePortCheck, "", "", err
+		return nil, disablePortCheck, "", "", "", err
 	}
 	// Setting conntrack max for kubeproxy to 0
 	if rkeConfig.Services.Kubeproxy.ExtraArgs == nil {
@@ -362,12 +368,12 @@ func getDindConfig(ctx *cli.Context) (*v3.RancherKubernetesEngineConfig, bool, s
 	}
 	rkeConfig.Services.Kubeproxy.ExtraArgs["conntrack-max-per-core"] = "0"
 
-	return rkeConfig, disablePortCheck, dindStorageDriver, filePath, nil
+	return rkeConfig, disablePortCheck, dindStorageDriver, filePath, dindDNS, nil
 }
 
-func createDINDEnv(ctx context.Context, rkeConfig *v3.RancherKubernetesEngineConfig, dindStorageDriver string) error {
+func createDINDEnv(ctx context.Context, rkeConfig *v3.RancherKubernetesEngineConfig, dindStorageDriver, dindDNS string) error {
 	for i := range rkeConfig.Nodes {
-		address, err := dind.StartUpDindContainer(ctx, rkeConfig.Nodes[i].Address, dind.DINDNetwork, dindStorageDriver)
+		address, err := dind.StartUpDindContainer(ctx, rkeConfig.Nodes[i].Address, dind.DINDNetwork, dindStorageDriver, dindDNS)
 		if err != nil {
 			return err
 		}
diff --git a/dind/dind.go b/dind/dind.go
index 2afe58f6..a2eb5df6 100644
--- a/dind/dind.go
+++ b/dind/dind.go
@@ -8,6 +8,7 @@ import (
 	"github.com/docker/docker/api/types/container"
 	"github.com/docker/docker/client"
 	"github.com/rancher/rke/docker"
+	"github.com/rancher/rke/util"
 	"github.com/sirupsen/logrus"
 )
 
@@ -19,7 +20,7 @@ const (
 	DINDSubnet          = "172.18.0.0/16"
 )
 
-func StartUpDindContainer(ctx context.Context, dindAddress, dindNetwork, dindStorageDriver string) (string, error) {
+func StartUpDindContainer(ctx context.Context, dindAddress, dindNetwork, dindStorageDriver, dindDNS string) (string, error) {
 	cli, err := client.NewEnvClient()
 	if err != nil {
 		return "", err
@@ -46,7 +47,15 @@ func StartUpDindContainer(ctx context.Context, dindAddress, dindNetwork, dindSto
 		}
 		binds := []string{
 			fmt.Sprintf("/var/lib/kubelet-%s:/var/lib/kubelet:shared", containerName),
-			"/etc/resolv.conf:/etc/resolv.conf",
+		}
+		isLink, err := util.IsSymlink("/etc/resolv.conf")
+		if err != nil {
+			return "", err
+		}
+		if isLink {
+			logrus.Infof("[%s] symlinked [/etc/resolv.conf] file detected. Using [%s] as DNS server.", DINDPlane, dindDNS)
+		} else {
+			binds = append(binds, "/etc/resolv.conf:/etc/resolv.conf")
 		}
 		imageCfg := &container.Config{
 			Image: DINDImage,
@@ -62,6 +71,12 @@ func StartUpDindContainer(ctx context.Context, dindAddress, dindNetwork, dindSto
 		hostCfg := &container.HostConfig{
 			Privileged: true,
 			Binds:      binds,
+			// this gets ignored if resolv.conf is bind mounted. So it's ok to have it anyway.
+			DNS: []string{dindDNS},
+			// Calico needs this
+			Sysctls: map[string]string{
+				"net.ipv4.conf.all.rp_filter": "1",
+			},
 		}
 		resp, err := cli.ContainerCreate(ctx, imageCfg, hostCfg, nil, containerName)
 		if err != nil {
diff --git a/util/util.go b/util/util.go
index 03db3897..cd054ae7 100644
--- a/util/util.go
+++ b/util/util.go
@@ -2,6 +2,7 @@ package util
 
 import (
 	"fmt"
+	"os"
 	"reflect"
 	"strings"
 
@@ -51,3 +52,14 @@ func UniqueStringSlice(elements []string) []string {
 	}
 	return result
 }
+
+func IsSymlink(file string) (bool, error) {
+	f, err := os.Lstat(file)
+	if err != nil {
+		return false, err
+	}
+	if f.Mode()&os.ModeSymlink != 0 {
+		return true, nil
+	}
+	return false, nil
+}