diff --git a/Gemfile b/Gemfile
index 59882bed6..836fce72f 100644
--- a/Gemfile
+++ b/Gemfile
@@ -93,6 +93,7 @@ gem 'airbrake'
 gem 'company_register', github: 'internetee/company_register', branch: :master
 gem 'e_invoice', github: 'internetee/e_invoice', branch: :master
 gem 'lhv', github: 'internetee/lhv', tag: 'v0.1.0'
+gem 'domain_name'
 
 group :development do
   # deploy
diff --git a/Gemfile.lock b/Gemfile.lock
index 45ceca8ab..e5caa4dfc 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -475,6 +475,7 @@ DEPENDENCIES
   database_cleaner
   devise (~> 4.0)
   digidoc_client!
+  domain_name
   e_invoice!
   epp (= 1.5.0)!
   epp-xml (= 1.1.0)!
diff --git a/app/models/nameserver.rb b/app/models/nameserver.rb
index d9fdde406..4a0361397 100644
--- a/app/models/nameserver.rb
+++ b/app/models/nameserver.rb
@@ -81,7 +81,7 @@ class Nameserver < ActiveRecord::Base
 
   def glue_record_required?
     return unless hostname? && domain
-    hostname.end_with?(domain.name)
+    DomainName(hostname).domain == domain.name
   end
 
   def normalize_attributes
diff --git a/test/integration/epp/domain/create/nameservers_test.rb b/test/integration/epp/domain/create/nameservers_test.rb
deleted file mode 100644
index 205bc7a86..000000000
--- a/test/integration/epp/domain/create/nameservers_test.rb
+++ /dev/null
@@ -1,35 +0,0 @@
-require 'test_helper'
-
-class EppDomainCreateNameserversTest < EppTestCase
-  # Glue record requirement
-  def test_nameserver_ip_address_is_required_if_hostname_is_under_the_same_domain
-    request_xml = <<-XML
-      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
-      <epp xmlns="https://epp.tld.ee/schema/epp-ee-1.0.xsd">
-        <command>
-          <create>
-            <domain:create xmlns:domain="https://epp.tld.ee/schema/domain-eis-1.0.xsd">
-              <domain:name>new.test</domain:name>
-              <domain:ns>
-                <domain:hostAttr>
-                  <domain:hostName>ns1.new.test</domain:hostName>
-                </domain:hostAttr>
-              </domain:ns>
-              <domain:registrant>john-001</domain:registrant>
-            </domain:create>
-          </create>
-          <extension>
-            <eis:extdata xmlns:eis="https://epp.tld.ee/schema/eis-1.0.xsd">
-              <eis:legalDocument type="pdf">test</eis:legalDocument>
-            </eis:extdata>
-          </extension>
-        </command>
-      </epp>
-    XML
-
-    assert_no_difference 'Domain.count' do
-      post '/epp/command/create', { frame: request_xml }, { 'HTTP_COOKIE' => 'session=api_bestnames' }
-    end
-    assert_epp_response :required_parameter_missing
-  end
-end
diff --git a/test/models/nameserver/glue_record_test.rb b/test/models/nameserver/glue_record_test.rb
index 599f04ec6..cec33ebf6 100644
--- a/test/models/nameserver/glue_record_test.rb
+++ b/test/models/nameserver/glue_record_test.rb
@@ -5,23 +5,42 @@ class NameserverGlueRecordTest < ActiveSupport::TestCase
     @nameserver = nameservers(:shop_ns1)
   end
 
-  def test_invalid_without_ip_if_glue_record_is_required
-    @nameserver.hostname = 'ns1.shop.test'
-    @nameserver.ipv4 = @nameserver.ipv6 = ''
-    assert @nameserver.invalid?
-    assert_includes @nameserver.errors.full_messages, 'Either IPv4 or IPv6 is required' \
+  def test_invalid_when_glue_record_is_required_and_no_ip_is_provided
+    domain = Domain.new(name: 'shop.test')
+    nameserver = Nameserver.new(domain: domain, hostname: 'ns1.shop.test')
+
+    assert nameserver.invalid?
+    assert_includes nameserver.errors.full_messages, 'Either IPv4 or IPv6 is required' \
     ' for glue record generation'
   end
 
-  def test_valid_with_ip_if_glue_record_is_required
-    @nameserver.hostname = 'ns1.shop.test'
-    @nameserver.ipv4 = ['192.0.2.1']
-    @nameserver.ipv6 = ''
-    assert @nameserver.valid?
+  def test_valid_when_glue_record_is_required_and_ipv4_is_provided
+    domain = Domain.new(name: 'shop.test')
+    nameserver = Nameserver.new(domain: domain, hostname: 'ns1.shop.test')
+    nameserver.ipv4 = ['192.0.2.1']
+
+    assert nameserver.valid?
   end
 
-  def test_valid_without_ip_if_glue_record_is_not_required
-    @nameserver.ipv4 = @nameserver.ipv6 = ''
-    assert @nameserver.valid?
+  def test_valid_when_glue_record_is_required_and_ipv6_is_provided
+    domain = Domain.new(name: 'shop.test')
+    nameserver = Nameserver.new(domain: domain, hostname: 'ns1.shop.test')
+    nameserver.ipv6 = ['2001:db8::1']
+
+    assert nameserver.valid?
+  end
+
+  def test_valid_when_glue_record_is_not_required_and_no_ip_is_provided
+    domain = Domain.new(name: 'shop.test')
+    nameserver = Nameserver.new(domain: domain, hostname: 'ns1.registrar.test')
+
+    assert nameserver.valid?
+  end
+
+  def test_valid_when_glue_record_is_not_required_and_no_ip_is_provided_substring_match
+    domain = Domain.new(name: 'le.test')
+    nameserver = Nameserver.new(domain: domain, hostname: 'ns1.shop.test')
+
+    assert nameserver.valid?
   end
 end