diff --git a/dracut/30ignition/coreos-static-hostname.service b/dracut/30ignition/coreos-static-hostname.service
new file mode 100644
index 0000000..aa9359c
--- /dev/null
+++ b/dracut/30ignition/coreos-static-hostname.service
@@ -0,0 +1,13 @@
+[Unit]
+Description=CoreOS Static Hostname Agent
+DefaultDependencies=false
+Before=initrd.target
+After=systemd-networkd.service initrd-root-fs.target
+Wants=systemd-networkd.service initrd-root-fs.target
+
+# Ensure Ignition can overwrite /etc/hostname
+Before=ignition-files.service
+
+[Service]
+Type=oneshot
+ExecStart=/usr/bin/coreos-metadata --cmdline --hostname=/sysroot/etc/hostname
diff --git a/dracut/30ignition/ignition-generator b/dracut/30ignition/ignition-generator
index 76bb2aa..573e511 100755
--- a/dracut/30ignition/ignition-generator
+++ b/dracut/30ignition/ignition-generator
@@ -45,6 +45,9 @@ if $(cmdline_bool coreos.first_boot 0); then
     if [[ $(cmdline_arg coreos.oem.id) == "packet" ]]; then
         add_requires coreos-static-network.service
     fi
+    if [[ $(cmdline_arg coreos.oem.id) == "hcloud" ]]; then
+        add_requires coreos-static-hostname.service
+    fi
 
     # On EC2, shut down systemd-networkd if ignition fails so that the instance
     # fails EC2 instance checks.
diff --git a/dracut/30ignition/module-setup.sh b/dracut/30ignition/module-setup.sh
index 447686a..656bcc6 100755
--- a/dracut/30ignition/module-setup.sh
+++ b/dracut/30ignition/module-setup.sh
@@ -49,6 +49,9 @@ install() {
     inst_simple "$moddir/coreos-digitalocean-network.service" \
         "$systemdsystemunitdir/coreos-digitalocean-network.service"
 
+    inst_simple "$moddir/coreos-static-hostname.service" \
+        "$systemdsystemunitdir/coreos-static-hostname.service"    
+
     inst_simple "$moddir/coreos-static-network.service" \
         "$systemdsystemunitdir/coreos-static-network.service"