diff --git a/libpod/container_internal_linux.go b/libpod/container_internal_linux.go
index 05b149e03f..cefe122099 100644
--- a/libpod/container_internal_linux.go
+++ b/libpod/container_internal_linux.go
@@ -529,14 +529,37 @@ func (c *Container) generateSpec(ctx context.Context) (*spec.Spec, error) {
 		}
 	}
 
+	// Hostname handling:
+	// If we have a UTS namespace, set Hostname in the OCI spec.
+	// Set the HOSTNAME environment variable unless explicitly overridden by
+	// the user (already present in OCI spec). If we don't have a UTS ns,
+	// set it to the host's hostname instead.
+	hostname := c.Hostname()
+	foundUTS := false
 	for _, i := range c.config.Spec.Linux.Namespaces {
 		if i.Type == spec.UTSNamespace && i.Path == "" {
-			hostname := c.Hostname()
+			foundUTS = true
 			g.SetHostname(hostname)
-			g.AddProcessEnv("HOSTNAME", hostname)
 			break
 		}
 	}
+	if !foundUTS {
+		tmpHostname, err := os.Hostname()
+		if err != nil {
+			return nil, err
+		}
+		hostname = tmpHostname
+	}
+	needEnv := true
+	for _, checkEnv := range g.Config.Process.Env {
+		if strings.SplitN(checkEnv, "=", 2)[0] == "HOSTNAME" {
+			needEnv = false
+			break
+		}
+	}
+	if needEnv {
+		g.AddProcessEnv("HOSTNAME", hostname)
+	}
 
 	if c.config.UTSNsCtr != "" {
 		if err := c.addNamespaceContainer(&g, UTSNS, c.config.UTSNsCtr, spec.UTSNamespace); err != nil {
diff --git a/pkg/specgen/generate/namespaces.go b/pkg/specgen/generate/namespaces.go
index 036c7b7a16..3cd5a3c9c5 100644
--- a/pkg/specgen/generate/namespaces.go
+++ b/pkg/specgen/generate/namespaces.go
@@ -364,7 +364,9 @@ func specConfigureNamespaces(s *specgen.SpecGenerator, g *generate.Generator, rt
 		// namespaces?
 		g.SetHostname(hostname)
 	}
-	g.AddProcessEnv("HOSTNAME", hostname)
+	if _, ok := s.Env["HOSTNAME"]; !ok && s.Hostname != "" {
+		g.AddProcessEnv("HOSTNAME", hostname)
+	}
 
 	// User
 	switch s.UserNS.NSMode {
diff --git a/test/e2e/run_test.go b/test/e2e/run_test.go
index 4888a676b1..92d7d222e4 100644
--- a/test/e2e/run_test.go
+++ b/test/e2e/run_test.go
@@ -1415,4 +1415,12 @@ WORKDIR /madethis`
 		Expect(session.ExitCode()).To(Equal(0))
 		Expect(session.ErrorToString()).To(ContainSubstring("Trying to pull"))
 	})
+
+	It("podman run container with hostname and hostname environment variable", func() {
+		hostnameEnv := "test123"
+		session := podmanTest.Podman([]string{"run", "--hostname", "testctr", "--env", fmt.Sprintf("HOSTNAME=%s", hostnameEnv), ALPINE, "printenv", "HOSTNAME"})
+		session.WaitWithDefaultTimeout()
+		Expect(session.ExitCode()).To(Equal(0))
+		Expect(session.OutputToString()).To(ContainSubstring(hostnameEnv))
+	})
 })