diff --git a/app/models/nameserver.rb b/app/models/nameserver.rb
index ccedf0880..9ca1bebf7 100644
--- a/app/models/nameserver.rb
+++ b/app/models/nameserver.rb
@@ -8,7 +8,7 @@ class Nameserver < ActiveRecord::Base
   # scope :owned_by_registrar, -> (registrar) { joins(:domain).where('domains.registrar_id = ?', registrar.id) }
 
   # rubocop: disable Metrics/LineLength
-  validates :hostname, format: { with: /\A(([a-zA-Z0-9]|[a-zA-Z0-9][a-zA-Z0-9\-]*[a-zA-Z0-9])\.)*([A-Za-z0-9]|[A-Za-z0-9][A-Za-z0-9\-]*[A-Za-z0-9])\z/ }
+  validates :hostname, format: { with: /\A(([a-zA-Z0-9]|[a-zA-ZäöüõšžÄÖÜÕŠŽ0-9][a-zA-ZäöüõšžÄÖÜÕŠŽ0-9\-]*[a-zA-ZäöüõšžÄÖÜÕŠŽ0-9])\.)*([A-Za-z0-9]|[A-Za-z0-9][A-Za-z0-9\-]*[A-Za-z0-9])\z/ }
   # validates :ipv4, format: { with: /\A(([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])\.){3}([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])\z/, allow_blank: true }
   # validates :ipv6, format: { with: /(([0-9a-fA-F]{1,4}:){7,7}[0-9a-fA-F]{1,4}|([0-9a-fA-F]{1,4}:){1,7}:|([0-9a-fA-F]{1,4}:){1,6}:[0-9a-fA-F]{1,4}|([0-9a-fA-F]{1,4}:){1,5}(:[0-9a-fA-F]{1,4}){1,2}|([0-9a-fA-F]{1,4}:){1,4}(:[0-9a-fA-F]{1,4}){1,3}|([0-9a-fA-F]{1,4}:){1,3}(:[0-9a-fA-F]{1,4}){1,4}|([0-9a-fA-F]{1,4}:){1,2}(:[0-9a-fA-F]{1,4}){1,5}|[0-9a-fA-F]{1,4}:((:[0-9a-fA-F]{1,4}){1,6})|:((:[0-9a-fA-F]{1,4}){1,7}|:)|fe80:(:[0-9a-fA-F]{0,4}){0,4}%[0-9a-zA-Z]{1,}|::(ffff(:0{1,4}){0,1}:){0,1}((25[0-5]|(2[0-4]|1{0,1}[0-9]){0,1}[0-9]).){3,3}(25[0-5]|(2[0-4]|1{0,1}[0-9]){0,1}[0-9])|([0-9a-fA-F]{1,4}:){1,4}:((25[0-5]|(2[0-4]|1{0,1}[0-9]){0,1}[0-9]).){3,3}(25[0-5]|(2[0-4]|1{0,1}[0-9]){0,1}[0-9]))/, allow_blank: true }
   validate :val_ipv4
@@ -16,7 +16,9 @@ class Nameserver < ActiveRecord::Base
   # rubocop: enable Metrics/LineLength
 
   before_validation :normalize_attributes
-
+  before_validation :check_puny_symbols
+  before_validation :check_label_length
+  
   delegate :name, to: :domain, prefix: true
 
   def epp_code_map
@@ -26,6 +28,7 @@ class Nameserver < ActiveRecord::Base
         ],
         '2005' => [
             [:hostname, :invalid, { value: { obj: 'hostAttr', val: hostname } }],
+            [:hostname, :puny_to_long, { value: { obj: 'hostAttr', val: hostname } }],
             [:ipv4, :invalid, { value: { obj: 'hostAddr', val: ipv4 } }],
             [:ipv6, :invalid, { value: { obj: 'hostAddr', val: ipv6 } }]
         ],
@@ -41,10 +44,26 @@ class Nameserver < ActiveRecord::Base
     self.ipv6 = Array(ipv6).reject(&:blank?).map(&:strip).map(&:upcase)
   end
 
+  def check_label_length
+    hostname_puny.split('.').each do |label|
+      errors.add(:hostname, :puny_to_long) if label.length > 63
+    end
+  end
+
+  def check_puny_symbols
+    regexp = /(\A|\.)..--/
+    errors.add(:hostname, :invalid) if hostname =~ regexp
+  end
+
   def to_s
     hostname
   end
 
+  def hostname=(hostname)
+    self[:hostname] = SimpleIDN.to_unicode(hostname)
+    self[:hostname_puny] = SimpleIDN.to_ascii(hostname)
+  end
+
   def val_ipv4
     regexp = /\A(([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])\.){3}([0-9]|[1-9][0-9]|1[0-9]{2}|2[0-4][0-9]|25[0-5])\z/
     ipv4.to_a.each do |ip|
diff --git a/config/locales/en.yml b/config/locales/en.yml
index a28390ae9..0312a29c2 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -131,6 +131,7 @@ en:
             hostname:
               invalid: 'Hostname is invalid'
               taken: 'Nameserver already exists on this domain'
+              puny_to_long: 'Hostname puny label is too long (maximum is 63 characters)'
             ipv4:
               blank: 'IPv4 is missing'
               invalid: 'IPv4 is invalid'
diff --git a/db/migrate/20160429114732_add_puny_hostname_to_nameserver.rb b/db/migrate/20160429114732_add_puny_hostname_to_nameserver.rb
new file mode 100644
index 000000000..368d9f144
--- /dev/null
+++ b/db/migrate/20160429114732_add_puny_hostname_to_nameserver.rb
@@ -0,0 +1,9 @@
+class AddPunyHostnameToNameserver < ActiveRecord::Migration
+
+  def change
+
+    add_column :nameservers, :hostname_puny, :string
+    execute "UPDATE nameservers n SET hostname_puny = n.hostname"
+
+  end
+end
diff --git a/lib/tasks/convert.rake b/lib/tasks/convert.rake
index 35e68046c..47e0ec7c2 100644
--- a/lib/tasks/convert.rake
+++ b/lib/tasks/convert.rake
@@ -71,5 +71,47 @@ namespace :convert do
       end
     end
   end
+
+  desc 'Convert nameservers hostname and hostname_puny'
+  task nameserves_hostname: :environment do
+
+    start = Time.zone.now.to_f
+    count = 0
+    puts '-----> Converting hostnames...'
+
+    Nameserver.find_each(:batch_size => 1000)  do |ns|
+      ns.hostname       = SimpleIDN.to_unicode(ns.hostname)
+      ns.hostname_puny  = SimpleIDN.to_ascii(ns.hostname_puny)
+      ns.save validate: false
+      count += 1
+      puts "-----> Converted #{count} nameservers" if count % 1000 == 0
+    end
+    puts "-----> Converted #{count} nameservers #{(Time.zone.now.to_f - start).round(2)} seconds"
+
+  end
+
+  desc 'Convert nameservers history hostname'
+  task nameserves_history_hostname: :environment do
+
+    start = Time.zone.now.to_f
+    count = 0
+    puts '-----> Converting hostnames history...'
+
+    NameserverVersion.find_each do |ns|
+      if obj = ns.object
+        obj["hostname"] = SimpleIDN.to_unicode(obj["hostname"])
+        ns.object = obj
+      end
+
+      if (obj_c = ns.object_changes).present?
+        obj_c["name"].map!{|e| e ? SimpleIDN.to_unicode(e) : e } if obj_c["hostname"]
+        ns.object_changes = obj_c
+      end
+      count += 1
+      ns.save!
+    end
+    puts "-----> Converted #{count} history rows #{(Time.zone.now.to_f - start).round(2)} seconds"
+  end
+
 end