diff --git a/libp2p/services/autorelayservice.nim b/libp2p/services/autorelayservice.nim
index defd42f17..2c5a66096 100644
--- a/libp2p/services/autorelayservice.nim
+++ b/libp2p/services/autorelayservice.nim
@@ -53,6 +53,7 @@ proc reserveAndUpdate(self: AutoRelayService, relayPid: PeerId, switch: Switch)
     if relayPid notin self.relayAddresses or self.relayAddresses[relayPid] != relayedAddr:
       self.relayAddresses[relayPid] = relayedAddr
       await switch.peerInfo.update()
+      debug "Updated relay addresses", relayPid, relayedAddr
       if not self.onReservation.isNil():
         self.onReservation(concat(toSeq(self.relayAddresses.values)))
     await sleepAsync chronos.seconds(ttl - 30)
diff --git a/libp2p/services/hpservice.nim b/libp2p/services/hpservice.nim
index a2ee4974a..9cf45e673 100644
--- a/libp2p/services/hpservice.nim
+++ b/libp2p/services/hpservice.nim
@@ -43,14 +43,21 @@ proc new*(T: typedesc[HPService], autonatService: AutonatService, autoRelayServi
   return T(autonatService: autonatService, autoRelayService: autoRelayService, isPublicIPAddrProc: isPublicIPAddrProc)
 
 proc tryStartingDirectConn(self: HPService, switch: Switch, peerId: PeerId): Future[bool] {.async.} =
+  proc tryConnect(address: MultiAddress): Future[bool] {.async.} =
+    debug "Trying to create direct connection", peerId, address
+    await switch.connect(peerId, @[address], true, false)
+    debug "Direct connection created."
+    return true
+
   await sleepAsync(500.milliseconds) # wait for AddressBook to be populated
   for address in switch.peerStore[AddressBook][peerId]:
     try:
-      let ta = initTAddress(address)
-      if ta.isOk() and self.isPublicIPAddrProc(ta.get()):
-        await switch.connect(peerId, @[address], true, false)
-        debug "Direct connection created."
-        return true
+      if DNS.matchPartial(address):
+        return await tryConnect(address)
+      else:
+        let ta = initTAddress(address)
+        if ta.isOk() and self.isPublicIPAddrProc(ta.get()):
+          return await tryConnect(address)
     except CatchableError as err:
       debug "Failed to create direct connection.", err = err.msg
       continue
diff --git a/libp2p/switch.nim b/libp2p/switch.nim
index bc2975d33..eb2d6f80c 100644
--- a/libp2p/switch.nim
+++ b/libp2p/switch.nim
@@ -339,7 +339,7 @@ proc start*(s: Switch) {.async, gcsafe, public.} =
     warn "Switch has already been started"
     return
 
-  trace "starting switch for peer", peerInfo = s.peerInfo
+  debug "starting switch for peer", peerInfo = s.peerInfo
   var startFuts: seq[Future[void]]
   for t in s.transports:
     let addrs = s.peerInfo.listenAddrs.filterIt(
diff --git a/tests/testhpservice.nim b/tests/testhpservice.nim
index 572727899..9dfce61db 100644
--- a/tests/testhpservice.nim
+++ b/tests/testhpservice.nim
@@ -26,12 +26,15 @@ import ../libp2p/[builders,
 import ../libp2p/protocols/connectivity/relay/[relay, client]
 import ../libp2p/protocols/connectivity/autonat/[service]
 import ../libp2p/wire
+import ../libp2p/nameresolving/nameresolver
+import ../libp2p/nameresolving/mockresolver
+
 import stubs/autonatclientstub
 
 proc isPublicAddrIPAddrMock(ta: TransportAddress): bool =
   return true
 
-proc createSwitch(r: Relay = nil, hpService: Service = nil): Switch {.raises: [LPError, Defect].} =
+proc createSwitch(r: Relay = nil, hpService: Service = nil, nameResolver: NameResolver = nil): Switch {.raises: [LPError, Defect].} =
   var builder = SwitchBuilder.new()
     .withRng(newRng())
     .withAddresses(@[ MultiAddress.init("/ip4/0.0.0.0/tcp/0").tryGet() ])
@@ -46,6 +49,9 @@ proc createSwitch(r: Relay = nil, hpService: Service = nil): Switch {.raises: [L
   if r != nil:
     builder = builder.withCircuitRelay(r)
 
+  if nameResolver != nil:
+    builder = builder.withNameResolver(nameResolver)
+
   return builder.build()
 
 proc buildRelayMA(switchRelay: Switch, switchClient: Switch): MultiAddress =
@@ -90,6 +96,51 @@ suite "Hole Punching":
     await allFuturesThrowing(
       privatePeerSwitch.stop(), publicPeerSwitch.stop(), switchRelay.stop())
 
+  asyncTest "Direct connection must work when peer address is public and dns is used":
+
+    let autonatClientStub = AutonatClientStub.new(expectedDials = 1)
+    autonatClientStub.answer = NotReachable
+    let autonatService = AutonatService.new(autonatClientStub, newRng(), maxQueueSize = 1)
+
+    let relayClient = RelayClient.new()
+    let privatePeerRelayAddr = newFuture[seq[MultiAddress]]()
+
+
+    let resolver = MockResolver.new()
+    resolver.ipResponses[("localhost", false)] = @["127.0.0.1"]
+    resolver.ipResponses[("localhost", true)] = @["::1"]
+
+    let publicPeerSwitch = createSwitch(RelayClient.new(), nameResolver = resolver)
+
+    proc addressMapper(listenAddrs: seq[MultiAddress]): Future[seq[MultiAddress]] {.gcsafe, async.} =
+        return @[MultiAddress.init("/dns4/localhost/").tryGet() & listenAddrs[0][1].tryGet()]
+    publicPeerSwitch.peerInfo.addressMappers.add(addressMapper)
+    await publicPeerSwitch.peerInfo.update()
+
+    proc checkMA(address: seq[MultiAddress]) =
+      if not privatePeerRelayAddr.completed():
+        privatePeerRelayAddr.complete(address)
+
+    let autoRelayService = AutoRelayService.new(1, relayClient, checkMA, newRng())
+
+    let hpservice = HPService.new(autonatService, autoRelayService, isPublicAddrIPAddrMock)
+
+    let privatePeerSwitch = createSwitch(relayClient, hpservice, nameResolver = resolver)
+    let switchRelay = createSwitch(Relay.new())
+
+    await allFutures(switchRelay.start(), privatePeerSwitch.start(), publicPeerSwitch.start())
+
+    await privatePeerSwitch.connect(switchRelay.peerInfo.peerId, switchRelay.peerInfo.addrs)
+
+    await publicPeerSwitch.connect(privatePeerSwitch.peerInfo.peerId, (await privatePeerRelayAddr))
+
+    checkExpiring:
+      privatePeerSwitch.connManager.connCount(publicPeerSwitch.peerInfo.peerId) == 1 and
+      not isRelayed(privatePeerSwitch.connManager.selectMuxer(publicPeerSwitch.peerInfo.peerId).connection)
+
+    await allFuturesThrowing(
+      privatePeerSwitch.stop(), publicPeerSwitch.stop(), switchRelay.stop())
+
   proc holePunchingTest(connectStub: proc (): Future[void] {.async.},
                         isPublicIPAddrProc: IsPublicIPAddrProc,
                         answer: Answer) {.async.} =