diff --git a/package/dnsmasq/Config.in b/package/dnsmasq/Config.in
index f434b8ba5d..e67aa46170 100644
--- a/package/dnsmasq/Config.in
+++ b/package/dnsmasq/Config.in
@@ -21,13 +21,14 @@ config BR2_PACKAGE_DNSMASQ_DHCP
 	  Enable DHCP server support in dnsmasq.
 
 config BR2_PACKAGE_DNSMASQ_IDN
-	bool "IDN support (BIG!)"
+	bool "IDN support"
 	depends on BR2_USE_WCHAR
-	select BR2_PACKAGE_LIBINTL
 	select BR2_PACKAGE_LIBIDN
+	select BR2_PACKAGE_GETTEXT if BR2_NEEDS_GETTEXT_IF_LOCALE
+	select BR2_PACKAGE_LIBINTL if BR2_NEEDS_GETTEXT_IF_LOCALE
 	help
 	  Enable IDN support in dnsmasq.
-	  This option is a big space taker since is pulls in many libraries.
+	  This option is a big space taker since it pulls in many libraries.
 
 config BR2_PACKAGE_DNSMASQ_LUA
 	bool "Lua scripting support"
@@ -35,4 +36,10 @@ config BR2_PACKAGE_DNSMASQ_LUA
 	help
 	  Enable lua scripting for dnsmasq
 
+config BR2_PACKAGE_DNSMASQ_CONNTRACK
+	bool "conntrack marking support"
+	select BR2_PACKAGE_LIBNETFILTER_CONNTRACK
+	help
+	  Enable DNS query connection marking in netfilter.
+
 endif
diff --git a/package/dnsmasq/dnsmasq.mk b/package/dnsmasq/dnsmasq.mk
index c1995a0a61..2e3575ccb6 100644
--- a/package/dnsmasq/dnsmasq.mk
+++ b/package/dnsmasq/dnsmasq.mk
@@ -4,7 +4,7 @@
 #
 #############################################################
 
-DNSMASQ_VERSION = 2.60
+DNSMASQ_VERSION = 2.61
 DNSMASQ_SITE = http://thekelleys.org.uk/dnsmasq
 DNSMASQ_MAKE_ENV = CC="$(TARGET_CC)"
 DNSMASQ_MAKE_OPT = COPTS="$(DNSMASQ_COPTS)" PREFIX=/usr CFLAGS="$(TARGET_CFLAGS)"
@@ -22,10 +22,23 @@ ifneq ($(BR2_PACKAGE_DNSMASQ_TFTP),y)
 	DNSMASQ_COPTS += -DNO_TFTP
 endif
 
+# NLS requires IDN so only enable it (i18n) when IDN is true
 ifeq ($(BR2_PACKAGE_DNSMASQ_IDN),y)
-	DNSMASQ_MAKE_OPT += all-i18n
-	DNSMASQ_DEPENDENCIES += libidn libintl
-	DNSMASQ_MAKE_OPT += LDFLAGS+="-lintl -lidn"
+	DNSMASQ_DEPENDENCIES += libidn $(if $(BR2_NEEDS_GETTEXT_IF_LOCALE),gettext libintl)
+	DNSMASQ_MAKE_OPT += LDFLAGS+="-lidn $(if $(BR2_NEEDS_GETTEXT_IF_LOCALE),-lintl)"
+	DNSMASQ_COPTS += -DHAVE_IDN
+	DNSMASQ_I18N = $(if $(BR2_ENABLE_LOCALE),-i18n)
+endif
+
+ifeq ($(BR2_PACKAGE_DNSMASQ_CONNTRACK),y)
+	DNSMASQ_DEPENDENCIES += host-pkg-config libnetfilter_conntrack
+endif
+
+ifeq ($(BR2_PACKAGE_DNSMASQ_CONNTRACK),y)
+define DNSMASQ_ENABLE_CONNTRACK
+	$(SED) 's^.*#define HAVE_CONNTRACK.*^#define HAVE_CONNTRACK^' \
+		$(DNSMASQ_DIR)/src/config.h
+endef
 endif
 
 ifeq ($(BR2_PACKAGE_DNSMASQ_LUA),y)
@@ -70,11 +83,12 @@ define DNSMASQ_BUILD_CMDS
 	$(DNSMASQ_FIX_PKGCONFIG)
 	$(DNSMASQ_ENABLE_DBUS)
 	$(DNSMASQ_ENABLE_LUA)
-	$(DNSMASQ_MAKE_ENV) $(MAKE) -C $(@D) $(DNSMASQ_MAKE_OPT)
+	$(DNSMASQ_ENABLE_CONNTRACK)
+	$(DNSMASQ_MAKE_ENV) $(MAKE) -C $(@D) $(DNSMASQ_MAKE_OPT) all$(DNSMASQ_I18N)
 endef
 
 define DNSMASQ_INSTALL_TARGET_CMDS
-	$(DNSMASQ_MAKE_ENV) $(MAKE) -C $(@D) $(DNSMASQ_MAKE_OPT) install
+	$(DNSMASQ_MAKE_ENV) $(MAKE) -C $(@D) $(DNSMASQ_MAKE_OPT) install$(DNSMASQ_I18N)
 	mkdir -p $(TARGET_DIR)/var/lib/misc/
 endef