diff --git a/templates/initscripts/files/rc.sysinit b/templates/initscripts/files/rc.sysinit
index e74d1b47492..40cebbf2787 100755
--- a/templates/initscripts/files/rc.sysinit
+++ b/templates/initscripts/files/rc.sysinit
@@ -50,3 +50,8 @@ fi
 if [ -f /etc/localtime ]; then
 	hwclock $HWCLOCK_PARAMS --noadjfile
 fi
+
+# Set hostname
+if [ -n "$HOSTNAME" ]; then
+	hostname "$HOSTNAME"
+fi