diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/files/99-org.freedesktop.hostname1.rules b/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/files/99-org.freedesktop.hostname1.rules
new file mode 100644
index 0000000000..70bec0f868
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/files/99-org.freedesktop.hostname1.rules
@@ -0,0 +1,6 @@
+polkit.addRule(function(action, subject) {
+        if (action.id == "org.freedesktop.hostname1.set-hostname" &&
+            subject.user == "systemd-network") {
+                return polkit.Result.YES;
+        }
+});
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/systemd-215-r9.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/systemd-215-r10.ebuild
similarity index 99%
rename from sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/systemd-215-r9.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/systemd-215-r10.ebuild
index 8861ca885e..a1feadf44f 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/systemd-215-r9.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/systemd/systemd-215-r10.ebuild
@@ -383,6 +383,10 @@ multilib_src_install_all() {
 	systemd_enable_service multi-user.target systemd-networkd.service
 	systemd_enable_service multi-user.target systemd-resolved.service
 	systemd_enable_service network-online.target systemd-networkd-wait-online.service
+
+	# Grant networkd access to set the transient host name
+	insinto /usr/share/polkit-1/rules.d
+	doins "${FILESDIR}"/99-org.freedesktop.hostname1.rules
 }
 
 migrate_locale() {