diff --git a/engine/schema/src/main/java/com/cloud/network/dao/NetworkDao.java b/engine/schema/src/main/java/com/cloud/network/dao/NetworkDao.java
index 0861a424ebb6..fdca6e43f00f 100644
--- a/engine/schema/src/main/java/com/cloud/network/dao/NetworkDao.java
+++ b/engine/schema/src/main/java/com/cloud/network/dao/NetworkDao.java
@@ -18,6 +18,7 @@
 
 import java.util.List;
 import java.util.Map;
+import java.util.Set;
 
 import com.cloud.network.Network;
 import com.cloud.network.Network.GuestType;
@@ -47,6 +48,12 @@ public interface NetworkDao extends GenericDao<NetworkVO, Long>, StateDao<State,
 
     int getOtherPersistentNetworksCount(long id, String broadcastURI, boolean isPersistent);
 
+    List<NetworkVO> listByNetworkDomains(Set<String> uniqueNtwkDomains);
+
+    List<NetworkVO> listByNetworkDomainsAndAccountIds(Set<String> uniqueNtwkDomains, Set<Long> accountIds);
+
+    List<NetworkVO> listByNetworkDomainsAndDomainIds(Set<String> uniqueNtwkDomains, Set<Long> domainIds);
+
     /**
      * Retrieves the next available mac address in this network configuration.
      *
diff --git a/engine/schema/src/main/java/com/cloud/network/dao/NetworkDaoImpl.java b/engine/schema/src/main/java/com/cloud/network/dao/NetworkDaoImpl.java
index 0aae532eac57..4b299085612c 100644
--- a/engine/schema/src/main/java/com/cloud/network/dao/NetworkDaoImpl.java
+++ b/engine/schema/src/main/java/com/cloud/network/dao/NetworkDaoImpl.java
@@ -86,6 +86,7 @@ public class NetworkDaoImpl extends GenericDaoBase<NetworkVO, Long>implements Ne
 
     GenericSearchBuilder<NetworkVO, Long> GarbageCollectedSearch;
     SearchBuilder<NetworkVO> PrivateNetworkSearch;
+    SearchBuilder<NetworkVO> NetworkDomainSearch;
 
     @Inject
     ResourceTagDao _tagsDao;
@@ -198,6 +199,12 @@ protected void init() {
         PersistentNetworkSearch.join("persistent", persistentNtwkOffJoin, PersistentNetworkSearch.entity().getNetworkOfferingId(), persistentNtwkOffJoin.entity().getId(), JoinType.INNER);
         PersistentNetworkSearch.done();
 
+        NetworkDomainSearch = createSearchBuilder();
+        NetworkDomainSearch.and("networkDomains", NetworkDomainSearch.entity().getNetworkDomain(), Op.IN);
+        NetworkDomainSearch.and("accounts", NetworkDomainSearch.entity().getAccountId(), Op.IN);
+        NetworkDomainSearch.and("domains", NetworkDomainSearch.entity().getDomainId(), Op.IN);
+        NetworkDomainSearch.done();
+
         PhysicalNetworkSearch = createSearchBuilder();
         PhysicalNetworkSearch.and("physicalNetworkId", PhysicalNetworkSearch.entity().getPhysicalNetworkId(), Op.EQ);
         PhysicalNetworkSearch.done();
@@ -428,6 +435,29 @@ public List<NetworkVO> getAllPersistentNetworksFromZone(long dataCenterId) {
         return search(sc, null);
     }
 
+    @Override
+    public List<NetworkVO> listByNetworkDomains(Set<String> uniqueNtwkDomains) {
+        SearchCriteria<NetworkVO> sc = NetworkDomainSearch.create();
+        sc.setParameters("networkDomains", uniqueNtwkDomains.toArray());
+        return search(sc, null);
+    }
+
+    @Override
+    public List<NetworkVO> listByNetworkDomainsAndAccountIds(Set<String> uniqueNtwkDomains, Set<Long> accountIds) {
+        SearchCriteria<NetworkVO> sc = NetworkDomainSearch.create();
+        sc.setParameters("networkDomains", uniqueNtwkDomains.toArray());
+        sc.setParameters("accounts", accountIds.toArray());
+        return search(sc, null);
+    }
+
+    @Override
+    public List<NetworkVO> listByNetworkDomainsAndDomainIds(Set<String> uniqueNtwkDomains, Set<Long> domainIds) {
+        SearchCriteria<NetworkVO> sc = NetworkDomainSearch.create();
+        sc.setParameters("networkDomains", uniqueNtwkDomains.toArray());
+        sc.setParameters("domains", domainIds.toArray());
+        return search(sc, null);
+    }
+
     @Override
     public String getNextAvailableMacAddress(final long networkConfigId, Integer zoneMacIdentifier) {
         final SequenceFetcher fetch = SequenceFetcher.getInstance();
diff --git a/server/src/main/java/com/cloud/vm/UserVmManager.java b/server/src/main/java/com/cloud/vm/UserVmManager.java
index 21ac6e3eb36e..972c6cbea89d 100644
--- a/server/src/main/java/com/cloud/vm/UserVmManager.java
+++ b/server/src/main/java/com/cloud/vm/UserVmManager.java
@@ -83,6 +83,12 @@ public interface UserVmManager extends UserVmService {
             "If set to true, tags specified in `resource.limit.host.tags` are also included in vm.strict.host.tags.",
             true);
 
+    ConfigKey<String> VmDistinctHostNameScope = new ConfigKey<>(String.class, "vm.distinct.hostname.scope", ConfigKey.CATEGORY_ADVANCED,
+            "network",
+            "Defines the scope for enforcing unique VM hostnames which determines the resource boundary within which VM hostnames must be unique. Possible values: global, domain, subdomain, account, network.",
+            true, ConfigKey.Scope.Global, null, "VM distinct hostname scope", null, null, null, ConfigKey.Kind.Select,
+            "global,domain,subdomain,account,network");
+
     ConfigKey<Boolean> EnableAdditionalVmConfig = new ConfigKey<>(
             "Advanced",
             Boolean.class,
@@ -92,6 +98,7 @@ public interface UserVmManager extends UserVmService {
             true,
             ConfigKey.Scope.Account);
 
+
     static final int MAX_USER_DATA_LENGTH_BYTES = 2048;
 
     public  static  final String CKS_NODE = "cksnode";
diff --git a/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java b/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java
index f1bbfa072928..b19e110cf3e0 100644
--- a/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java
+++ b/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java
@@ -4690,23 +4690,75 @@ protected void verifyIfHypervisorSupportsRootdiskSizeOverride(HypervisorType hyp
         }
     }
 
-    private void checkIfHostNameUniqueInNtwkDomain(String hostName, List<? extends Network> networkList) {
-        // Check that hostName is unique in the network domain
-        Map<String, List<Long>> ntwkDomains = new HashMap<String, List<Long>>();
+    private List<NetworkVO> getNetworksWithSameNetworkDomainInDomains(List<NetworkVO> networkList, boolean checkSubDomains) {
+        Set<String> uniqueNtwkDomains = networkList.stream().map(NetworkVO::getNetworkDomain).collect(Collectors.toSet());
+        Set<Long> domainIdList = new HashSet<>();
         for (Network network : networkList) {
+            domainIdList.add(network.getDomainId());
+        }
+        Set<Long> finalDomainIdSet = new HashSet<>(domainIdList);
+        if (checkSubDomains) {
+            for (Long domainId : domainIdList) {
+                DomainVO domain = _domainDao.findById(domainId);
+                List<Long> childDomainIds = _domainDao.getDomainChildrenIds(domain.getPath());
+                finalDomainIdSet.addAll(childDomainIds);
+            }
+        }
+        return _networkDao.listByNetworkDomainsAndDomainIds(uniqueNtwkDomains, finalDomainIdSet);
+    }
+
+    private List<NetworkVO> getNetworksForCheckUniqueHostName(List<NetworkVO> networkList) {
+        List<NetworkVO> finalNetworkList;
+        Set<String> uniqueNtwkDomains;
+        switch (VmDistinctHostNameScope.value()) {
+            case "global":
+                uniqueNtwkDomains = networkList.stream().map(NetworkVO::getNetworkDomain).collect(Collectors.toSet());
+                finalNetworkList = _networkDao.listByNetworkDomains(uniqueNtwkDomains);
+                break;
+            case "domain":
+                finalNetworkList = getNetworksWithSameNetworkDomainInDomains(networkList, false);
+                break;
+            case "subdomain":
+                finalNetworkList = getNetworksWithSameNetworkDomainInDomains(networkList, true);
+                break;
+            case "account":
+                uniqueNtwkDomains = networkList.stream().map(NetworkVO::getNetworkDomain).collect(Collectors.toSet());
+                Set<Long> accountIds = networkList.stream().map(Network::getAccountId).collect(Collectors.toSet());
+                finalNetworkList = _networkDao.listByNetworkDomainsAndAccountIds(uniqueNtwkDomains, accountIds);
+                break;
+            default:
+                Set<Long> vpcIds = networkList.stream().map(Network::getVpcId).filter(Objects::nonNull).collect(Collectors.toSet());
+                finalNetworkList = new ArrayList<>(networkList);
+                for (Long vpcId : vpcIds) {
+                    finalNetworkList.addAll(_networkDao.listByVpc(vpcId));
+                }
+                break;
+        }
+        return finalNetworkList;
+    }
+
+    private Map<String, Set<Long>> getNetworkIdPerNetworkDomain(List<NetworkVO> networkList) {
+        Map<String, Set<Long>> ntwkDomains = new HashMap<>();
+
+        List<NetworkVO> updatedNetworkList = getNetworksForCheckUniqueHostName(networkList);
+        for (Network network : updatedNetworkList) {
             String ntwkDomain = network.getNetworkDomain();
+            Set<Long> ntwkIds;
             if (!ntwkDomains.containsKey(ntwkDomain)) {
-                List<Long> ntwkIds = new ArrayList<Long>();
-                ntwkIds.add(network.getId());
-                ntwkDomains.put(ntwkDomain, ntwkIds);
+                ntwkIds = new HashSet<>();
             } else {
-                List<Long> ntwkIds = ntwkDomains.get(ntwkDomain);
-                ntwkIds.add(network.getId());
-                ntwkDomains.put(ntwkDomain, ntwkIds);
+                ntwkIds = ntwkDomains.get(ntwkDomain);
             }
+            ntwkIds.add(network.getId());
+            ntwkDomains.put(ntwkDomain, ntwkIds);
         }
+        return ntwkDomains;
+    }
 
-        for (Entry<String, List<Long>> ntwkDomain : ntwkDomains.entrySet()) {
+    private void checkIfHostNameUniqueInNtwkDomain(String hostName, List<NetworkVO> networkList) {
+        // Check that hostName is unique
+        Map<String, Set<Long>> ntwkDomains = getNetworkIdPerNetworkDomain(networkList);
+        for (Entry<String, Set<Long>> ntwkDomain : ntwkDomains.entrySet()) {
             for (Long ntwkId : ntwkDomain.getValue()) {
                 // * get all vms hostNames in the network
                 List<String> hostNames = _vmInstanceDao.listDistinctHostNames(ntwkId);
@@ -9243,7 +9295,7 @@ public ConfigKey<?>[] getConfigKeys() {
         return new ConfigKey<?>[] {EnableDynamicallyScaleVm, AllowDiskOfferingChangeDuringScaleVm, AllowUserExpungeRecoverVm, VmIpFetchWaitInterval, VmIpFetchTrialMax,
                 VmIpFetchThreadPoolMax, VmIpFetchTaskWorkers, AllowDeployVmIfGivenHostFails, EnableAdditionalVmConfig, DisplayVMOVFProperties,
                 KvmAdditionalConfigAllowList, XenServerAdditionalConfigAllowList, VmwareAdditionalConfigAllowList, DestroyRootVolumeOnVmDestruction,
-                EnforceStrictResourceLimitHostTagCheck, StrictHostTags, AllowUserForceStopVm};
+                EnforceStrictResourceLimitHostTagCheck, StrictHostTags, AllowUserForceStopVm, VmDistinctHostNameScope};
     }
 
     @Override
diff --git a/server/src/test/java/com/cloud/vpc/dao/MockNetworkDaoImpl.java b/server/src/test/java/com/cloud/vpc/dao/MockNetworkDaoImpl.java
index 490f2ccba46b..8a0bec56df7b 100644
--- a/server/src/test/java/com/cloud/vpc/dao/MockNetworkDaoImpl.java
+++ b/server/src/test/java/com/cloud/vpc/dao/MockNetworkDaoImpl.java
@@ -29,6 +29,7 @@
 import java.util.ArrayList;
 import java.util.List;
 import java.util.Map;
+import java.util.Set;
 
 @DB()
 public class MockNetworkDaoImpl extends GenericDaoBase<NetworkVO, Long> implements NetworkDao {
@@ -265,4 +266,18 @@ public List<NetworkVO> getAllPersistentNetworksFromZone(long dataCenterId) {
         return null;
     }
 
+    @Override
+    public List<NetworkVO> listByNetworkDomains(Set<String> uniqueNtwkDomains) {
+        return List.of();
+    }
+
+    @Override
+    public List<NetworkVO> listByNetworkDomainsAndAccountIds(Set<String> uniqueNtwkDomains, Set<Long> accountIds) {
+        return List.of();
+    }
+
+    @Override
+    public List<NetworkVO> listByNetworkDomainsAndDomainIds(Set<String> uniqueNtwkDomains, Set<Long> domainIds) {
+        return List.of();
+    }
 }