diff --git a/client/android/client.go b/client/android/client.go
index 3b8a5bd0f..79067398f 100644
--- a/client/android/client.go
+++ b/client/android/client.go
@@ -203,10 +203,6 @@ func (c *Client) Networks() *NetworkArray {
 			continue
 		}
 
-		if routes[0].IsDynamic() {
-			continue
-		}
-
 		peer, err := c.recorder.GetPeer(routes[0].Peer)
 		if err != nil {
 			log.Errorf("could not get peer info for %s: %v", routes[0].Peer, err)
diff --git a/client/firewall/uspfilter/uspfilter.go b/client/firewall/uspfilter/filter.go
similarity index 97%
rename from client/firewall/uspfilter/uspfilter.go
rename to client/firewall/uspfilter/filter.go
index dcff92c61..136d3741b 100644
--- a/client/firewall/uspfilter/uspfilter.go
+++ b/client/firewall/uspfilter/filter.go
@@ -104,6 +104,11 @@ type Manager struct {
 	flowLogger  nftypes.FlowLogger
 
 	blockRule firewall.Rule
+
+	// Internal 1:1 DNAT
+	dnatEnabled  atomic.Bool
+	dnatMappings map[netip.Addr]netip.Addr
+	dnatMutex    sync.RWMutex
 }
 
 // decoder for packages
@@ -189,6 +194,7 @@ func create(iface common.IFaceMapper, nativeFirewall firewall.Manager, disableSe
 		flowLogger:          flowLogger,
 		netstack:            netstack.IsEnabled(),
 		localForwarding:     enableLocalForwarding,
+		dnatMappings:        make(map[netip.Addr]netip.Addr),
 	}
 	m.routingEnabled.Store(false)
 
@@ -519,22 +525,6 @@ func (m *Manager) SetLegacyManagement(isLegacy bool) error {
 // Flush doesn't need to be implemented for this manager
 func (m *Manager) Flush() error { return nil }
 
-// AddDNATRule adds a DNAT rule
-func (m *Manager) AddDNATRule(rule firewall.ForwardRule) (firewall.Rule, error) {
-	if m.nativeFirewall == nil {
-		return nil, errNatNotSupported
-	}
-	return m.nativeFirewall.AddDNATRule(rule)
-}
-
-// DeleteDNATRule deletes a DNAT rule
-func (m *Manager) DeleteDNATRule(rule firewall.Rule) error {
-	if m.nativeFirewall == nil {
-		return errNatNotSupported
-	}
-	return m.nativeFirewall.DeleteDNATRule(rule)
-}
-
 // UpdateSet updates the rule destinations associated with the given set
 // by merging the existing prefixes with the new ones, then deduplicating.
 func (m *Manager) UpdateSet(set firewall.Set, prefixes []netip.Prefix) error {
@@ -608,6 +598,14 @@ func (m *Manager) processOutgoingHooks(packetData []byte, size int) bool {
 		return false
 	}
 
+	translated := m.translateOutboundDNAT(packetData, d)
+	if translated {
+		if err := d.parser.DecodeLayers(packetData, &d.decoded); err != nil {
+			m.logger.Error("Failed to re-decode packet after DNAT: %v", err)
+			return false
+		}
+	}
+
 	srcIP, dstIP := m.extractIPs(d)
 	if !srcIP.IsValid() {
 		m.logger.Error("Unknown network layer: %v", d.decoded[0])
@@ -618,7 +616,6 @@ func (m *Manager) processOutgoingHooks(packetData []byte, size int) bool {
 		return true
 	}
 
-	// for netflow we keep track even if the firewall is stateless
 	m.trackOutbound(d, srcIP, dstIP, size)
 
 	return false
@@ -747,9 +744,17 @@ func (m *Manager) dropFilter(packetData []byte, size int) bool {
 		return false
 	}
 
-	// For all inbound traffic, first check if it matches a tracked connection.
-	// This must happen before any other filtering because the packets are statefully tracked.
+	// Step 1: Check connection tracking FIRST (with original addresses)
 	if m.stateful && m.isValidTrackedConnection(d, srcIP, dstIP, size) {
+		// Step 2: Apply reverse DNAT for established connections
+		translated := m.translateInboundReverse(packetData, d)
+		if translated {
+			// Re-decode after translation
+			if err := d.parser.DecodeLayers(packetData, &d.decoded); err != nil {
+				m.logger.Error("Failed to re-decode packet after reverse DNAT: %v", err)
+				return true
+			}
+		}
 		return false
 	}
 
diff --git a/client/firewall/uspfilter/uspfilter_test.go b/client/firewall/uspfilter/filter_test.go
similarity index 100%
rename from client/firewall/uspfilter/uspfilter_test.go
rename to client/firewall/uspfilter/filter_test.go
diff --git a/client/firewall/uspfilter/nat.go b/client/firewall/uspfilter/nat.go
new file mode 100644
index 000000000..ad1725d13
--- /dev/null
+++ b/client/firewall/uspfilter/nat.go
@@ -0,0 +1,309 @@
+package uspfilter
+
+import (
+	"encoding/binary"
+	"fmt"
+	"net/netip"
+
+	"github.com/google/gopacket/layers"
+
+	firewall "github.com/netbirdio/netbird/client/firewall/manager"
+)
+
+func ipv4Checksum(header []byte) uint16 {
+	if len(header) < 20 {
+		return 0
+	}
+
+	var sum uint32
+	for i := 0; i < len(header)-1; i += 2 {
+		sum += uint32(binary.BigEndian.Uint16(header[i : i+2]))
+	}
+
+	if len(header)%2 == 1 {
+		sum += uint32(header[len(header)-1]) << 8
+	}
+
+	for (sum >> 16) > 0 {
+		sum = (sum & 0xFFFF) + (sum >> 16)
+	}
+
+	return ^uint16(sum)
+}
+
+func icmpChecksum(data []byte) uint16 {
+	var sum uint32
+	for i := 0; i < len(data)-1; i += 2 {
+		sum += uint32(binary.BigEndian.Uint16(data[i : i+2]))
+	}
+
+	if len(data)%2 == 1 {
+		sum += uint32(data[len(data)-1]) << 8
+	}
+
+	for (sum >> 16) > 0 {
+		sum = (sum & 0xFFFF) + (sum >> 16)
+	}
+
+	return ^uint16(sum)
+}
+
+func (m *Manager) AddInternalDNATMapping(originalAddr, translatedAddr netip.Addr) error {
+	if !originalAddr.IsValid() || !translatedAddr.IsValid() {
+		return fmt.Errorf("invalid IP addresses")
+	}
+
+	if m.localipmanager.IsLocalIP(translatedAddr) {
+		return fmt.Errorf("cannot map to local IP: %s", translatedAddr)
+	}
+
+	m.dnatMutex.Lock()
+	m.dnatMappings[originalAddr] = translatedAddr
+	if len(m.dnatMappings) == 1 {
+		m.dnatEnabled.Store(true)
+	}
+	m.dnatMutex.Unlock()
+
+	return nil
+}
+
+// RemoveInternalDNATMapping removes a 1:1 IP address mapping
+func (m *Manager) RemoveInternalDNATMapping(originalAddr netip.Addr) error {
+	m.dnatMutex.Lock()
+	defer m.dnatMutex.Unlock()
+
+	if _, exists := m.dnatMappings[originalAddr]; !exists {
+		return fmt.Errorf("mapping not found for: %s", originalAddr)
+	}
+
+	delete(m.dnatMappings, originalAddr)
+	if len(m.dnatMappings) == 0 {
+		m.dnatEnabled.Store(false)
+	}
+
+	return nil
+}
+
+// getDNATTranslation returns the translated address if a mapping exists
+func (m *Manager) getDNATTranslation(addr netip.Addr) (netip.Addr, bool) {
+	if !m.dnatEnabled.Load() {
+		return addr, false
+	}
+
+	m.dnatMutex.RLock()
+	translated, exists := m.dnatMappings[addr]
+	m.dnatMutex.RUnlock()
+	return translated, exists
+}
+
+// findReverseDNATMapping finds original address for return traffic
+func (m *Manager) findReverseDNATMapping(translatedAddr netip.Addr) (netip.Addr, bool) {
+	if !m.dnatEnabled.Load() {
+		return translatedAddr, false
+	}
+
+	m.dnatMutex.RLock()
+	defer m.dnatMutex.RUnlock()
+
+	for original, translated := range m.dnatMappings {
+		if translated == translatedAddr {
+			return original, true
+		}
+	}
+
+	return translatedAddr, false
+}
+
+// translateOutboundDNAT applies DNAT translation to outbound packets
+func (m *Manager) translateOutboundDNAT(packetData []byte, d *decoder) bool {
+	if !m.dnatEnabled.Load() {
+		return false
+	}
+
+	_, dstIP := m.extractIPs(d)
+	if !dstIP.IsValid() || !dstIP.Is4() {
+		return false
+	}
+
+	translatedIP, exists := m.getDNATTranslation(dstIP)
+	if !exists {
+		return false
+	}
+
+	if err := m.rewritePacketDestination(packetData, d, translatedIP); err != nil {
+		m.logger.Error("Failed to rewrite packet destination: %v", err)
+		return false
+	}
+
+	m.logger.Trace("DNAT: %s -> %s", dstIP, translatedIP)
+	return true
+}
+
+// translateInboundReverse applies reverse DNAT to inbound return traffic
+func (m *Manager) translateInboundReverse(packetData []byte, d *decoder) bool {
+	if !m.dnatEnabled.Load() {
+		return false
+	}
+
+	srcIP, _ := m.extractIPs(d)
+	if !srcIP.IsValid() || !srcIP.Is4() {
+		return false
+	}
+
+	originalIP, exists := m.findReverseDNATMapping(srcIP)
+	if !exists {
+		return false
+	}
+
+	if err := m.rewritePacketSource(packetData, d, originalIP); err != nil {
+		m.logger.Error("Failed to rewrite packet source: %v", err)
+		return false
+	}
+
+	m.logger.Trace("Reverse DNAT: %s -> %s", srcIP, originalIP)
+	return true
+}
+
+// rewritePacketDestination replaces destination IP in the packet
+func (m *Manager) rewritePacketDestination(packetData []byte, d *decoder, newIP netip.Addr) error {
+	if d.decoded[0] != layers.LayerTypeIPv4 || !newIP.Is4() {
+		return fmt.Errorf("only IPv4 supported")
+	}
+
+	oldDst := make([]byte, 4)
+	copy(oldDst, packetData[16:20])
+	newDst := newIP.AsSlice()
+
+	copy(packetData[16:20], newDst)
+
+	ipHeaderLen := int(d.ip4.IHL) * 4
+	binary.BigEndian.PutUint16(packetData[10:12], 0)
+	ipChecksum := ipv4Checksum(packetData[:ipHeaderLen])
+	binary.BigEndian.PutUint16(packetData[10:12], ipChecksum)
+
+	if len(d.decoded) > 1 {
+		switch d.decoded[1] {
+		case layers.LayerTypeTCP:
+			m.updateTCPChecksum(packetData, ipHeaderLen, oldDst, newDst)
+		case layers.LayerTypeUDP:
+			m.updateUDPChecksum(packetData, ipHeaderLen, oldDst, newDst)
+		case layers.LayerTypeICMPv4:
+			m.updateICMPChecksum(packetData, ipHeaderLen)
+		}
+	}
+
+	return nil
+}
+
+// rewritePacketSource replaces the source IP address in the packet
+func (m *Manager) rewritePacketSource(packetData []byte, d *decoder, newIP netip.Addr) error {
+	if d.decoded[0] != layers.LayerTypeIPv4 || !newIP.Is4() {
+		return fmt.Errorf("only IPv4 supported")
+	}
+
+	oldSrc := make([]byte, 4)
+	copy(oldSrc, packetData[12:16])
+	newSrc := newIP.AsSlice()
+
+	copy(packetData[12:16], newSrc)
+
+	ipHeaderLen := int(d.ip4.IHL) * 4
+	binary.BigEndian.PutUint16(packetData[10:12], 0)
+	ipChecksum := ipv4Checksum(packetData[:ipHeaderLen])
+	binary.BigEndian.PutUint16(packetData[10:12], ipChecksum)
+
+	if len(d.decoded) > 1 {
+		switch d.decoded[1] {
+		case layers.LayerTypeTCP:
+			m.updateTCPChecksum(packetData, ipHeaderLen, oldSrc, newSrc)
+		case layers.LayerTypeUDP:
+			m.updateUDPChecksum(packetData, ipHeaderLen, oldSrc, newSrc)
+		case layers.LayerTypeICMPv4:
+			m.updateICMPChecksum(packetData, ipHeaderLen)
+		}
+	}
+
+	return nil
+}
+
+func (m *Manager) updateTCPChecksum(packetData []byte, ipHeaderLen int, oldIP, newIP []byte) {
+	tcpStart := ipHeaderLen
+	if len(packetData) < tcpStart+18 {
+		return
+	}
+
+	checksumOffset := tcpStart + 16
+	oldChecksum := binary.BigEndian.Uint16(packetData[checksumOffset : checksumOffset+2])
+	newChecksum := incrementalUpdate(oldChecksum, oldIP, newIP)
+	binary.BigEndian.PutUint16(packetData[checksumOffset:checksumOffset+2], newChecksum)
+}
+
+func (m *Manager) updateUDPChecksum(packetData []byte, ipHeaderLen int, oldIP, newIP []byte) {
+	udpStart := ipHeaderLen
+	if len(packetData) < udpStart+8 {
+		return
+	}
+
+	checksumOffset := udpStart + 6
+	oldChecksum := binary.BigEndian.Uint16(packetData[checksumOffset : checksumOffset+2])
+
+	if oldChecksum == 0 {
+		return
+	}
+
+	newChecksum := incrementalUpdate(oldChecksum, oldIP, newIP)
+	binary.BigEndian.PutUint16(packetData[checksumOffset:checksumOffset+2], newChecksum)
+}
+
+func (m *Manager) updateICMPChecksum(packetData []byte, ipHeaderLen int) {
+	icmpStart := ipHeaderLen
+	if len(packetData) < icmpStart+8 {
+		return
+	}
+
+	icmpData := packetData[icmpStart:]
+	binary.BigEndian.PutUint16(icmpData[2:4], 0)
+	checksum := icmpChecksum(icmpData)
+	binary.BigEndian.PutUint16(icmpData[2:4], checksum)
+}
+
+// incrementalUpdate performs incremental checksum update per RFC 1624
+func incrementalUpdate(oldChecksum uint16, oldBytes, newBytes []byte) uint16 {
+	sum := uint32(^oldChecksum)
+
+	for i := 0; i < len(oldBytes)-1; i += 2 {
+		sum += uint32(^binary.BigEndian.Uint16(oldBytes[i : i+2]))
+	}
+	if len(oldBytes)%2 == 1 {
+		sum += uint32(^oldBytes[len(oldBytes)-1]) << 8
+	}
+
+	for i := 0; i < len(newBytes)-1; i += 2 {
+		sum += uint32(binary.BigEndian.Uint16(newBytes[i : i+2]))
+	}
+	if len(newBytes)%2 == 1 {
+		sum += uint32(newBytes[len(newBytes)-1]) << 8
+	}
+
+	for (sum >> 16) > 0 {
+		sum = (sum & 0xffff) + (sum >> 16)
+	}
+
+	return ^uint16(sum)
+}
+
+// AddDNATRule adds a DNAT rule (delegates to native firewall for port forwarding)
+func (m *Manager) AddDNATRule(rule firewall.ForwardRule) (firewall.Rule, error) {
+	if m.nativeFirewall == nil {
+		return nil, errNatNotSupported
+	}
+	return m.nativeFirewall.AddDNATRule(rule)
+}
+
+// DeleteDNATRule deletes a DNAT rule (delegates to native firewall)
+func (m *Manager) DeleteDNATRule(rule firewall.Rule) error {
+	if m.nativeFirewall == nil {
+		return errNatNotSupported
+	}
+	return m.nativeFirewall.DeleteDNATRule(rule)
+}
diff --git a/client/internal/engine.go b/client/internal/engine.go
index 253ecb2a6..771b4f229 100644
--- a/client/internal/engine.go
+++ b/client/internal/engine.go
@@ -488,9 +488,9 @@ func (e *Engine) createFirewall() error {
 }
 
 func (e *Engine) initFirewall() error {
-	if err := e.routeManager.EnableServerRouter(e.firewall); err != nil {
+	if err := e.routeManager.SetFirewall(e.firewall); err != nil {
 		e.close()
-		return fmt.Errorf("enable server router: %w", err)
+		return fmt.Errorf("set firewall: %w", err)
 	}
 
 	if e.config.BlockLANAccess {
diff --git a/client/internal/routemanager/client/client.go b/client/internal/routemanager/client/client.go
index 46bff96db..0b8e161d2 100644
--- a/client/internal/routemanager/client/client.go
+++ b/client/internal/routemanager/client/client.go
@@ -10,11 +10,10 @@ import (
 
 	nbdns "github.com/netbirdio/netbird/client/internal/dns"
 	"github.com/netbirdio/netbird/client/internal/peer"
-	"github.com/netbirdio/netbird/client/internal/peerstore"
+	"github.com/netbirdio/netbird/client/internal/routemanager/common"
 	"github.com/netbirdio/netbird/client/internal/routemanager/dnsinterceptor"
 	"github.com/netbirdio/netbird/client/internal/routemanager/dynamic"
 	"github.com/netbirdio/netbird/client/internal/routemanager/iface"
-	"github.com/netbirdio/netbird/client/internal/routemanager/refcounter"
 	"github.com/netbirdio/netbird/client/internal/routemanager/static"
 	"github.com/netbirdio/netbird/client/proto"
 	"github.com/netbirdio/netbird/route"
@@ -553,41 +552,16 @@ func (w *Watcher) Stop() {
 	w.currentChosenStatus = nil
 }
 
-func HandlerFromRoute(
-	rt *route.Route,
-	routeRefCounter *refcounter.RouteRefCounter,
-	allowedIPsRefCounter *refcounter.AllowedIPsRefCounter,
-	dnsRouterInteval time.Duration,
-	statusRecorder *peer.Status,
-	wgInterface iface.WGIface,
-	dnsServer nbdns.Server,
-	peerStore *peerstore.Store,
-	useNewDNSRoute bool,
-) RouteHandler {
-	switch handlerType(rt, useNewDNSRoute) {
+func HandlerFromRoute(params common.HandlerParams) RouteHandler {
+	switch handlerType(params.Route, params.UseNewDNSRoute) {
 	case handlerTypeDnsInterceptor:
-		return dnsinterceptor.New(
-			rt,
-			routeRefCounter,
-			allowedIPsRefCounter,
-			statusRecorder,
-			dnsServer,
-			wgInterface,
-			peerStore,
-		)
+		return dnsinterceptor.New(params)
 	case handlerTypeDynamic:
-		dns := nbdns.NewServiceViaMemory(wgInterface)
-		return dynamic.NewRoute(
-			rt,
-			routeRefCounter,
-			allowedIPsRefCounter,
-			dnsRouterInteval,
-			statusRecorder,
-			wgInterface,
-			fmt.Sprintf("%s:%d", dns.RuntimeIP(), dns.RuntimePort()),
-		)
+		dns := nbdns.NewServiceViaMemory(params.WgInterface)
+		dnsAddr := fmt.Sprintf("%s:%d", dns.RuntimeIP(), dns.RuntimePort())
+		return dynamic.NewRoute(params, dnsAddr)
 	default:
-		return static.NewRoute(rt, routeRefCounter, allowedIPsRefCounter)
+		return static.NewRoute(params)
 	}
 }
 
diff --git a/client/internal/routemanager/common/params.go b/client/internal/routemanager/common/params.go
new file mode 100644
index 000000000..ed05a08c3
--- /dev/null
+++ b/client/internal/routemanager/common/params.go
@@ -0,0 +1,28 @@
+package common
+
+import (
+	"time"
+
+	"github.com/netbirdio/netbird/client/firewall/manager"
+	"github.com/netbirdio/netbird/client/internal/dns"
+	"github.com/netbirdio/netbird/client/internal/peer"
+	"github.com/netbirdio/netbird/client/internal/peerstore"
+	"github.com/netbirdio/netbird/client/internal/routemanager/fakeip"
+	"github.com/netbirdio/netbird/client/internal/routemanager/iface"
+	"github.com/netbirdio/netbird/client/internal/routemanager/refcounter"
+	"github.com/netbirdio/netbird/route"
+)
+
+type HandlerParams struct {
+	Route                *route.Route
+	RouteRefCounter      *refcounter.RouteRefCounter
+	AllowedIPsRefCounter *refcounter.AllowedIPsRefCounter
+	DnsRouterInteval     time.Duration
+	StatusRecorder       *peer.Status
+	WgInterface          iface.WGIface
+	DnsServer            dns.Server
+	PeerStore            *peerstore.Store
+	UseNewDNSRoute       bool
+	Firewall             manager.Manager
+	FakeIPManager        *fakeip.FakeIPManager
+}
diff --git a/client/internal/routemanager/dnsinterceptor/handler.go b/client/internal/routemanager/dnsinterceptor/handler.go
index 23478c88c..df0a18759 100644
--- a/client/internal/routemanager/dnsinterceptor/handler.go
+++ b/client/internal/routemanager/dnsinterceptor/handler.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"fmt"
 	"net/netip"
+	"runtime"
 	"strings"
 	"sync"
 
@@ -12,11 +13,14 @@ import (
 	log "github.com/sirupsen/logrus"
 
 	nberrors "github.com/netbirdio/netbird/client/errors"
+	firewall "github.com/netbirdio/netbird/client/firewall/manager"
 	"github.com/netbirdio/netbird/client/iface/wgaddr"
 	nbdns "github.com/netbirdio/netbird/client/internal/dns"
 	"github.com/netbirdio/netbird/client/internal/dnsfwd"
 	"github.com/netbirdio/netbird/client/internal/peer"
 	"github.com/netbirdio/netbird/client/internal/peerstore"
+	"github.com/netbirdio/netbird/client/internal/routemanager/common"
+	"github.com/netbirdio/netbird/client/internal/routemanager/fakeip"
 	"github.com/netbirdio/netbird/client/internal/routemanager/refcounter"
 	"github.com/netbirdio/netbird/management/domain"
 	"github.com/netbirdio/netbird/route"
@@ -24,6 +28,11 @@ import (
 
 type domainMap map[domain.Domain][]netip.Prefix
 
+type internalDNATer interface {
+	RemoveInternalDNATMapping(netip.Addr) error
+	AddInternalDNATMapping(netip.Addr, netip.Addr) error
+}
+
 type wgInterface interface {
 	Name() string
 	Address() wgaddr.Address
@@ -40,26 +49,22 @@ type DnsInterceptor struct {
 	interceptedDomains   domainMap
 	wgInterface          wgInterface
 	peerStore            *peerstore.Store
+	firewall             firewall.Manager
+	fakeIPManager        *fakeip.FakeIPManager
 }
 
-func New(
-	rt *route.Route,
-	routeRefCounter *refcounter.RouteRefCounter,
-	allowedIPsRefCounter *refcounter.AllowedIPsRefCounter,
-	statusRecorder *peer.Status,
-	dnsServer nbdns.Server,
-	wgInterface wgInterface,
-	peerStore *peerstore.Store,
-) *DnsInterceptor {
+func New(params common.HandlerParams) *DnsInterceptor {
 	return &DnsInterceptor{
-		route:                rt,
-		routeRefCounter:      routeRefCounter,
-		allowedIPsRefcounter: allowedIPsRefCounter,
-		statusRecorder:       statusRecorder,
-		dnsServer:            dnsServer,
-		wgInterface:          wgInterface,
+		route:                params.Route,
+		routeRefCounter:      params.RouteRefCounter,
+		allowedIPsRefcounter: params.AllowedIPsRefCounter,
+		statusRecorder:       params.StatusRecorder,
+		dnsServer:            params.DnsServer,
+		wgInterface:          params.WgInterface,
+		peerStore:            params.PeerStore,
+		firewall:             params.Firewall,
+		fakeIPManager:        params.FakeIPManager,
 		interceptedDomains:   make(domainMap),
-		peerStore:            peerStore,
 	}
 }
 
@@ -78,9 +83,13 @@ func (d *DnsInterceptor) RemoveRoute() error {
 	var merr *multierror.Error
 	for domain, prefixes := range d.interceptedDomains {
 		for _, prefix := range prefixes {
-			if _, err := d.routeRefCounter.Decrement(prefix); err != nil {
-				merr = multierror.Append(merr, fmt.Errorf("remove dynamic route for IP %s: %v", prefix, err))
+			// Routes should use fake IPs
+			routePrefix := d.transformRealToFakePrefix(prefix)
+			if _, err := d.routeRefCounter.Decrement(routePrefix); err != nil {
+				merr = multierror.Append(merr, fmt.Errorf("remove dynamic route for IP %s: %v", routePrefix, err))
 			}
+
+			// AllowedIPs should use real IPs
 			if d.currentPeerKey != "" {
 				if _, err := d.allowedIPsRefcounter.Decrement(prefix); err != nil {
 					merr = multierror.Append(merr, fmt.Errorf("remove allowed IP %s: %v", prefix, err))
@@ -88,8 +97,10 @@ func (d *DnsInterceptor) RemoveRoute() error {
 			}
 		}
 		log.Debugf("removed dynamic route(s) for [%s]: %s", domain.SafeString(), strings.ReplaceAll(fmt.Sprintf("%s", prefixes), " ", ", "))
-
 	}
+
+	d.cleanupDNATMappings()
+
 	for _, domain := range d.route.Domains {
 		d.statusRecorder.DeleteResolvedDomainsStates(domain)
 	}
@@ -102,6 +113,68 @@ func (d *DnsInterceptor) RemoveRoute() error {
 	return nberrors.FormatErrorOrNil(merr)
 }
 
+// transformRealToFakePrefix returns fake IP prefix for routes (if DNAT enabled)
+func (d *DnsInterceptor) transformRealToFakePrefix(realPrefix netip.Prefix) netip.Prefix {
+	if _, hasDNAT := d.internalDnatFw(); !hasDNAT {
+		return realPrefix
+	}
+
+	if fakeIP, ok := d.fakeIPManager.GetFakeIP(realPrefix.Addr()); ok {
+		return netip.PrefixFrom(fakeIP, realPrefix.Bits())
+	}
+
+	return realPrefix
+}
+
+// addAllowedIPForPrefix handles the AllowedIPs logic for a single prefix (uses real IPs)
+func (d *DnsInterceptor) addAllowedIPForPrefix(realPrefix netip.Prefix, peerKey string, domain domain.Domain) error {
+	// AllowedIPs always use real IPs
+	ref, err := d.allowedIPsRefcounter.Increment(realPrefix, peerKey)
+	if err != nil {
+		return fmt.Errorf("add allowed IP %s: %v", realPrefix, err)
+	}
+
+	if ref.Count > 1 && ref.Out != peerKey {
+		log.Warnf("IP [%s] for domain [%s] is already routed by peer [%s]. HA routing disabled",
+			realPrefix.Addr(),
+			domain.SafeString(),
+			ref.Out,
+		)
+	}
+
+	return nil
+}
+
+// addRouteAndAllowedIP handles both route and AllowedIPs addition for a prefix
+func (d *DnsInterceptor) addRouteAndAllowedIP(realPrefix netip.Prefix, domain domain.Domain) error {
+	// Routes use fake IPs (so traffic to fake IPs gets routed to interface)
+	routePrefix := d.transformRealToFakePrefix(realPrefix)
+	if _, err := d.routeRefCounter.Increment(routePrefix, struct{}{}); err != nil {
+		return fmt.Errorf("add route for IP %s: %v", routePrefix, err)
+	}
+
+	// Add to AllowedIPs if we have a current peer (uses real IPs)
+	if d.currentPeerKey == "" {
+		return nil
+	}
+
+	return d.addAllowedIPForPrefix(realPrefix, d.currentPeerKey, domain)
+}
+
+// removeAllowedIP handles AllowedIPs removal for a prefix (uses real IPs)
+func (d *DnsInterceptor) removeAllowedIP(realPrefix netip.Prefix) error {
+	if d.currentPeerKey == "" {
+		return nil
+	}
+
+	// AllowedIPs use real IPs
+	if _, err := d.allowedIPsRefcounter.Decrement(realPrefix); err != nil {
+		return fmt.Errorf("remove allowed IP %s: %v", realPrefix, err)
+	}
+
+	return nil
+}
+
 func (d *DnsInterceptor) AddAllowedIPs(peerKey string) error {
 	d.mu.Lock()
 	defer d.mu.Unlock()
@@ -109,14 +182,9 @@ func (d *DnsInterceptor) AddAllowedIPs(peerKey string) error {
 	var merr *multierror.Error
 	for domain, prefixes := range d.interceptedDomains {
 		for _, prefix := range prefixes {
-			if ref, err := d.allowedIPsRefcounter.Increment(prefix, peerKey); err != nil {
-				merr = multierror.Append(merr, fmt.Errorf("add allowed IP %s: %v", prefix, err))
-			} else if ref.Count > 1 && ref.Out != peerKey {
-				log.Warnf("IP [%s] for domain [%s] is already routed by peer [%s]. HA routing disabled",
-					prefix.Addr(),
-					domain.SafeString(),
-					ref.Out,
-				)
+			// AllowedIPs use real IPs
+			if err := d.addAllowedIPForPrefix(prefix, peerKey, domain); err != nil {
+				merr = multierror.Append(merr, err)
 			}
 		}
 	}
@@ -132,6 +200,7 @@ func (d *DnsInterceptor) RemoveAllowedIPs() error {
 	var merr *multierror.Error
 	for _, prefixes := range d.interceptedDomains {
 		for _, prefix := range prefixes {
+			// AllowedIPs use real IPs
 			if _, err := d.allowedIPsRefcounter.Decrement(prefix); err != nil {
 				merr = multierror.Append(merr, fmt.Errorf("remove allowed IP %s: %v", prefix, err))
 			}
@@ -284,6 +353,8 @@ func (d *DnsInterceptor) writeMsg(w dns.ResponseWriter, r *dns.Msg) error {
 			if err := d.updateDomainPrefixes(resolvedDomain, originalDomain, newPrefixes); err != nil {
 				log.Errorf("failed to update domain prefixes: %v", err)
 			}
+
+			d.replaceIPsInDNSResponse(r, newPrefixes)
 		}
 	}
 
@@ -294,6 +365,22 @@ func (d *DnsInterceptor) writeMsg(w dns.ResponseWriter, r *dns.Msg) error {
 	return nil
 }
 
+// logPrefixChanges handles the logging for prefix changes
+func (d *DnsInterceptor) logPrefixChanges(resolvedDomain, originalDomain domain.Domain, toAdd, toRemove []netip.Prefix) {
+	if len(toAdd) > 0 {
+		log.Debugf("added dynamic route(s) for domain=%s (pattern: domain=%s): %s",
+			resolvedDomain.SafeString(),
+			originalDomain.SafeString(),
+			toAdd)
+	}
+	if len(toRemove) > 0 && !d.route.KeepRoute {
+		log.Debugf("removed dynamic route(s) for domain=%s (pattern: domain=%s): %s",
+			resolvedDomain.SafeString(),
+			originalDomain.SafeString(),
+			toRemove)
+	}
+}
+
 func (d *DnsInterceptor) updateDomainPrefixes(resolvedDomain, originalDomain domain.Domain, newPrefixes []netip.Prefix) error {
 	d.mu.Lock()
 	defer d.mu.Unlock()
@@ -302,70 +389,184 @@ func (d *DnsInterceptor) updateDomainPrefixes(resolvedDomain, originalDomain dom
 	toAdd, toRemove := determinePrefixChanges(oldPrefixes, newPrefixes)
 
 	var merr *multierror.Error
+	var dnatMappings map[netip.Addr]netip.Addr
+
+	// Handle DNAT mappings for new prefixes
+	if _, hasDNAT := d.internalDnatFw(); hasDNAT {
+		dnatMappings = make(map[netip.Addr]netip.Addr)
+		for _, prefix := range toAdd {
+			realIP := prefix.Addr()
+			if fakeIP, err := d.fakeIPManager.AllocateFakeIP(realIP); err == nil {
+				dnatMappings[fakeIP] = realIP
+				log.Tracef("allocated fake IP %s for real IP %s", fakeIP, realIP)
+			} else {
+				log.Errorf("Failed to allocate fake IP for %s: %v", realIP, err)
+			}
+		}
+	}
 
 	// Add new prefixes
 	for _, prefix := range toAdd {
-		if _, err := d.routeRefCounter.Increment(prefix, struct{}{}); err != nil {
-			merr = multierror.Append(merr, fmt.Errorf("add route for IP %s: %v", prefix, err))
-			continue
-		}
-
-		if d.currentPeerKey == "" {
-			continue
-		}
-		if ref, err := d.allowedIPsRefcounter.Increment(prefix, d.currentPeerKey); err != nil {
-			merr = multierror.Append(merr, fmt.Errorf("add allowed IP %s: %v", prefix, err))
-		} else if ref.Count > 1 && ref.Out != d.currentPeerKey {
-			log.Warnf("IP [%s] for domain [%s] is already routed by peer [%s]. HA routing disabled",
-				prefix.Addr(),
-				resolvedDomain.SafeString(),
-				ref.Out,
-			)
+		if err := d.addRouteAndAllowedIP(prefix, resolvedDomain); err != nil {
+			merr = multierror.Append(merr, err)
 		}
 	}
 
+	d.addDNATMappings(dnatMappings)
+
 	if !d.route.KeepRoute {
 		// Remove old prefixes
 		for _, prefix := range toRemove {
-			if _, err := d.routeRefCounter.Decrement(prefix); err != nil {
-				merr = multierror.Append(merr, fmt.Errorf("remove route for IP %s: %v", prefix, err))
+			// Routes use fake IPs
+			routePrefix := d.transformRealToFakePrefix(prefix)
+			if _, err := d.routeRefCounter.Decrement(routePrefix); err != nil {
+				merr = multierror.Append(merr, fmt.Errorf("remove route for IP %s: %v", routePrefix, err))
 			}
-			if d.currentPeerKey != "" {
-				if _, err := d.allowedIPsRefcounter.Decrement(prefix); err != nil {
-					merr = multierror.Append(merr, fmt.Errorf("remove allowed IP %s: %v", prefix, err))
-				}
+			// AllowedIPs use real IPs
+			if err := d.removeAllowedIP(prefix); err != nil {
+				merr = multierror.Append(merr, err)
 			}
 		}
+
+		d.removeDNATMappingsForRealIPs(toRemove)
 	}
 
-	// Update domain prefixes using resolved domain as key
+	// Update domain prefixes using resolved domain as key - store real IPs
 	if len(toAdd) > 0 || len(toRemove) > 0 {
 		if d.route.KeepRoute {
-			// replace stored prefixes with old + added
 			// nolint:gocritic
 			newPrefixes = append(oldPrefixes, toAdd...)
 		}
 		d.interceptedDomains[resolvedDomain] = newPrefixes
 		originalDomain = domain.Domain(strings.TrimSuffix(string(originalDomain), "."))
+
+		// Store real IPs for status (user-facing), not fake IPs
 		d.statusRecorder.UpdateResolvedDomainsStates(originalDomain, resolvedDomain, newPrefixes, d.route.GetResourceID())
 
-		if len(toAdd) > 0 {
-			log.Debugf("added dynamic route(s) for domain=%s (pattern: domain=%s): %s",
-				resolvedDomain.SafeString(),
-				originalDomain.SafeString(),
-				toAdd)
-		}
-		if len(toRemove) > 0 && !d.route.KeepRoute {
-			log.Debugf("removed dynamic route(s) for domain=%s (pattern: domain=%s): %s",
-				resolvedDomain.SafeString(),
-				originalDomain.SafeString(),
-				toRemove)
-		}
+		d.logPrefixChanges(resolvedDomain, originalDomain, toAdd, toRemove)
 	}
 
 	return nberrors.FormatErrorOrNil(merr)
 }
 
+// removeDNATMappingsForRealIPs removes DNAT mappings from the firewall for real IP prefixes
+func (d *DnsInterceptor) removeDNATMappingsForRealIPs(realPrefixes []netip.Prefix) {
+	if len(realPrefixes) == 0 {
+		return
+	}
+
+	dnatFirewall, ok := d.internalDnatFw()
+	if !ok {
+		return
+	}
+
+	for _, prefix := range realPrefixes {
+		realIP := prefix.Addr()
+		if fakeIP, exists := d.fakeIPManager.GetFakeIP(realIP); exists {
+			if err := dnatFirewall.RemoveInternalDNATMapping(fakeIP); err != nil {
+				log.Errorf("Failed to remove DNAT mapping for %s: %v", fakeIP, err)
+			} else {
+				log.Debugf("Removed DNAT mapping for: %s -> %s", fakeIP, realIP)
+			}
+		}
+	}
+}
+
+// internalDnatFw checks if the firewall supports internal DNAT
+func (d *DnsInterceptor) internalDnatFw() (internalDNATer, bool) {
+	if d.firewall == nil || runtime.GOOS != "android" {
+		return nil, false
+	}
+	fw, ok := d.firewall.(internalDNATer)
+	return fw, ok
+}
+
+// addDNATMappings adds DNAT mappings to the firewall
+func (d *DnsInterceptor) addDNATMappings(mappings map[netip.Addr]netip.Addr) {
+	if len(mappings) == 0 {
+		return
+	}
+
+	dnatFirewall, ok := d.internalDnatFw()
+	if !ok {
+		return
+	}
+
+	for fakeIP, realIP := range mappings {
+		if err := dnatFirewall.AddInternalDNATMapping(fakeIP, realIP); err != nil {
+			log.Errorf("Failed to add DNAT mapping %s -> %s: %v", fakeIP, realIP, err)
+		} else {
+			log.Debugf("Added DNAT mapping: %s -> %s", fakeIP, realIP)
+		}
+	}
+}
+
+// removeDNATMappings removes DNAT mappings from the firewall for removed prefixes
+func (d *DnsInterceptor) removeDNATMappings(prefixes []netip.Prefix) {
+	if len(prefixes) == 0 {
+		return
+	}
+
+	dnatFirewall, ok := d.internalDnatFw()
+	if !ok {
+		return
+	}
+
+	for _, prefix := range prefixes {
+		fakeIP := prefix.Addr()
+		if err := dnatFirewall.RemoveInternalDNATMapping(fakeIP); err != nil {
+			log.Errorf("Failed to remove DNAT mapping for %s: %v", fakeIP, err)
+		} else {
+			log.Debugf("Removed DNAT mapping for: %s", fakeIP)
+		}
+	}
+}
+
+// cleanupDNATMappings removes all DNAT mappings for this interceptor
+func (d *DnsInterceptor) cleanupDNATMappings() {
+	if _, ok := d.internalDnatFw(); !ok {
+		return
+	}
+
+	for _, prefixes := range d.interceptedDomains {
+		d.removeDNATMappingsForRealIPs(prefixes)
+	}
+}
+
+// replaceIPsInDNSResponse replaces real IPs with fake IPs in the DNS response
+func (d *DnsInterceptor) replaceIPsInDNSResponse(reply *dns.Msg, realPrefixes []netip.Prefix) {
+	if _, ok := d.internalDnatFw(); !ok {
+		return
+	}
+
+	// Replace A and AAAA records with fake IPs
+	for _, answer := range reply.Answer {
+		switch rr := answer.(type) {
+		case *dns.A:
+			realIP, ok := netip.AddrFromSlice(rr.A)
+			if !ok {
+				continue
+			}
+
+			if fakeIP, exists := d.fakeIPManager.GetFakeIP(realIP); exists {
+				rr.A = fakeIP.AsSlice()
+				log.Tracef("Replaced real IP %s with fake IP %s in DNS response", realIP, fakeIP)
+			}
+
+		case *dns.AAAA:
+			realIP, ok := netip.AddrFromSlice(rr.AAAA)
+			if !ok {
+				continue
+			}
+
+			if fakeIP, exists := d.fakeIPManager.GetFakeIP(realIP); exists {
+				rr.AAAA = fakeIP.AsSlice()
+				log.Tracef("Replaced real IP %s with fake IP %s in DNS response", realIP, fakeIP)
+			}
+		}
+	}
+}
+
 func determinePrefixChanges(oldPrefixes, newPrefixes []netip.Prefix) (toAdd, toRemove []netip.Prefix) {
 	prefixSet := make(map[netip.Prefix]bool)
 	for _, prefix := range oldPrefixes {
diff --git a/client/internal/routemanager/dynamic/route.go b/client/internal/routemanager/dynamic/route.go
index 47511d4af..b263e09ef 100644
--- a/client/internal/routemanager/dynamic/route.go
+++ b/client/internal/routemanager/dynamic/route.go
@@ -14,6 +14,7 @@ import (
 
 	nberrors "github.com/netbirdio/netbird/client/errors"
 	"github.com/netbirdio/netbird/client/internal/peer"
+	"github.com/netbirdio/netbird/client/internal/routemanager/common"
 	"github.com/netbirdio/netbird/client/internal/routemanager/iface"
 	"github.com/netbirdio/netbird/client/internal/routemanager/refcounter"
 	"github.com/netbirdio/netbird/client/internal/routemanager/util"
@@ -52,24 +53,16 @@ type Route struct {
 	resolverAddr         string
 }
 
-func NewRoute(
-	rt *route.Route,
-	routeRefCounter *refcounter.RouteRefCounter,
-	allowedIPsRefCounter *refcounter.AllowedIPsRefCounter,
-	interval time.Duration,
-	statusRecorder *peer.Status,
-	wgInterface iface.WGIface,
-	resolverAddr string,
-) *Route {
+func NewRoute(params common.HandlerParams, resolverAddr string) *Route {
 	return &Route{
-		route:                rt,
-		routeRefCounter:      routeRefCounter,
-		allowedIPsRefcounter: allowedIPsRefCounter,
-		interval:             interval,
-		dynamicDomains:       domainMap{},
-		statusRecorder:       statusRecorder,
-		wgInterface:          wgInterface,
+		route:                params.Route,
+		routeRefCounter:      params.RouteRefCounter,
+		allowedIPsRefcounter: params.AllowedIPsRefCounter,
+		interval:             params.DnsRouterInteval,
+		statusRecorder:       params.StatusRecorder,
+		wgInterface:          params.WgInterface,
 		resolverAddr:         resolverAddr,
+		dynamicDomains:       domainMap{},
 	}
 }
 
diff --git a/client/internal/routemanager/fakeip/fakeip.go b/client/internal/routemanager/fakeip/fakeip.go
new file mode 100644
index 000000000..14cf3c30c
--- /dev/null
+++ b/client/internal/routemanager/fakeip/fakeip.go
@@ -0,0 +1,93 @@
+package fakeip
+
+import (
+	"fmt"
+	"net/netip"
+	"sync"
+)
+
+// FakeIPManager manages allocation of fake IPs from the 240.0.0.0/8 block
+type FakeIPManager struct {
+	mu         sync.Mutex
+	nextIP     netip.Addr                // Next IP to allocate
+	allocated  map[netip.Addr]netip.Addr // real IP -> fake IP
+	fakeToReal map[netip.Addr]netip.Addr // fake IP -> real IP
+	baseIP     netip.Addr                // First usable IP: 240.0.0.1
+	maxIP      netip.Addr                // Last usable IP: 240.255.255.254
+}
+
+// NewManager creates a new fake IP manager using 240.0.0.0/8 block
+func NewManager() *FakeIPManager {
+	baseIP := netip.AddrFrom4([4]byte{240, 0, 0, 1})
+	maxIP := netip.AddrFrom4([4]byte{240, 255, 255, 254})
+
+	return &FakeIPManager{
+		nextIP:     baseIP,
+		allocated:  make(map[netip.Addr]netip.Addr),
+		fakeToReal: make(map[netip.Addr]netip.Addr),
+		baseIP:     baseIP,
+		maxIP:      maxIP,
+	}
+}
+
+// AllocateFakeIP allocates a fake IP for the given real IP
+// Returns the fake IP, or existing fake IP if already allocated
+func (f *FakeIPManager) AllocateFakeIP(realIP netip.Addr) (netip.Addr, error) {
+	if !realIP.Is4() {
+		return netip.Addr{}, fmt.Errorf("only IPv4 addresses supported")
+	}
+
+	f.mu.Lock()
+	defer f.mu.Unlock()
+
+	if fakeIP, exists := f.allocated[realIP]; exists {
+		return fakeIP, nil
+	}
+
+	startIP := f.nextIP
+	for {
+		currentIP := f.nextIP
+
+		// Advance to next IP, wrapping at boundary
+		if f.nextIP.Compare(f.maxIP) >= 0 {
+			f.nextIP = f.baseIP
+		} else {
+			f.nextIP = f.nextIP.Next()
+		}
+
+		// Check if current IP is available
+		if _, inUse := f.fakeToReal[currentIP]; !inUse {
+			f.allocated[realIP] = currentIP
+			f.fakeToReal[currentIP] = realIP
+			return currentIP, nil
+		}
+
+		// Prevent infinite loop if all IPs exhausted
+		if f.nextIP.Compare(startIP) == 0 {
+			return netip.Addr{}, fmt.Errorf("no more fake IPs available in 240.0.0.0/8 block")
+		}
+	}
+}
+
+// GetFakeIP returns the fake IP for a real IP if it exists
+func (f *FakeIPManager) GetFakeIP(realIP netip.Addr) (netip.Addr, bool) {
+	f.mu.Lock()
+	defer f.mu.Unlock()
+
+	fakeIP, exists := f.allocated[realIP]
+	return fakeIP, exists
+}
+
+// GetRealIP returns the real IP for a fake IP if it exists, otherwise false
+func (f *FakeIPManager) GetRealIP(fakeIP netip.Addr) (netip.Addr, bool) {
+	f.mu.Lock()
+	defer f.mu.Unlock()
+
+	realIP, exists := f.fakeToReal[fakeIP]
+	return realIP, exists
+}
+
+// GetFakeIPBlock returns the fake IP block used by this manager
+func (f *FakeIPManager) GetFakeIPBlock() netip.Prefix {
+	return netip.MustParsePrefix("240.0.0.0/8")
+}
diff --git a/client/internal/routemanager/fakeip/fakeip_test.go b/client/internal/routemanager/fakeip/fakeip_test.go
new file mode 100644
index 000000000..d391cf2d0
--- /dev/null
+++ b/client/internal/routemanager/fakeip/fakeip_test.go
@@ -0,0 +1,242 @@
+package fakeip
+
+import (
+	"net/netip"
+	"sync"
+	"testing"
+)
+
+func TestNewManager(t *testing.T) {
+	manager := NewManager()
+
+	if manager.baseIP.String() != "240.0.0.1" {
+		t.Errorf("Expected base IP 240.0.0.1, got %s", manager.baseIP.String())
+	}
+
+	if manager.maxIP.String() != "240.255.255.254" {
+		t.Errorf("Expected max IP 240.255.255.254, got %s", manager.maxIP.String())
+	}
+
+	if manager.nextIP.Compare(manager.baseIP) != 0 {
+		t.Errorf("Expected nextIP to start at baseIP")
+	}
+}
+
+func TestAllocateFakeIP(t *testing.T) {
+	manager := NewManager()
+	realIP := netip.MustParseAddr("8.8.8.8")
+
+	fakeIP, err := manager.AllocateFakeIP(realIP)
+	if err != nil {
+		t.Fatalf("Failed to allocate fake IP: %v", err)
+	}
+
+	if !fakeIP.Is4() {
+		t.Error("Fake IP should be IPv4")
+	}
+
+	// Check it's in the correct range
+	if fakeIP.As4()[0] != 240 {
+		t.Errorf("Fake IP should be in 240.0.0.0/8 range, got %s", fakeIP.String())
+	}
+
+	// Should return same fake IP for same real IP
+	fakeIP2, err := manager.AllocateFakeIP(realIP)
+	if err != nil {
+		t.Fatalf("Failed to get existing fake IP: %v", err)
+	}
+
+	if fakeIP.Compare(fakeIP2) != 0 {
+		t.Errorf("Expected same fake IP for same real IP, got %s and %s", fakeIP.String(), fakeIP2.String())
+	}
+}
+
+func TestAllocateFakeIPIPv6Rejection(t *testing.T) {
+	manager := NewManager()
+	realIPv6 := netip.MustParseAddr("2001:db8::1")
+
+	_, err := manager.AllocateFakeIP(realIPv6)
+	if err == nil {
+		t.Error("Expected error for IPv6 address")
+	}
+}
+
+func TestGetFakeIP(t *testing.T) {
+	manager := NewManager()
+	realIP := netip.MustParseAddr("1.1.1.1")
+
+	// Should not exist initially
+	_, exists := manager.GetFakeIP(realIP)
+	if exists {
+		t.Error("Fake IP should not exist before allocation")
+	}
+
+	// Allocate and check
+	expectedFakeIP, err := manager.AllocateFakeIP(realIP)
+	if err != nil {
+		t.Fatalf("Failed to allocate: %v", err)
+	}
+
+	fakeIP, exists := manager.GetFakeIP(realIP)
+	if !exists {
+		t.Error("Fake IP should exist after allocation")
+	}
+
+	if fakeIP.Compare(expectedFakeIP) != 0 {
+		t.Errorf("Expected %s, got %s", expectedFakeIP.String(), fakeIP.String())
+	}
+}
+
+
+
+func TestMultipleAllocations(t *testing.T) {
+	manager := NewManager()
+
+	allocations := make(map[netip.Addr]netip.Addr)
+
+	// Allocate multiple IPs
+	for i := 1; i <= 100; i++ {
+		realIP := netip.AddrFrom4([4]byte{10, 0, byte(i / 256), byte(i % 256)})
+		fakeIP, err := manager.AllocateFakeIP(realIP)
+		if err != nil {
+			t.Fatalf("Failed to allocate fake IP for %s: %v", realIP.String(), err)
+		}
+
+		// Check for duplicates
+		for _, existingFake := range allocations {
+			if fakeIP.Compare(existingFake) == 0 {
+				t.Errorf("Duplicate fake IP allocated: %s", fakeIP.String())
+			}
+		}
+
+		allocations[realIP] = fakeIP
+	}
+
+	// Verify all allocations can be retrieved
+	for realIP, expectedFake := range allocations {
+		actualFake, exists := manager.GetFakeIP(realIP)
+		if !exists {
+			t.Errorf("Missing allocation for %s", realIP.String())
+		}
+		if actualFake.Compare(expectedFake) != 0 {
+			t.Errorf("Mismatch for %s: expected %s, got %s", realIP.String(), expectedFake.String(), actualFake.String())
+		}
+	}
+}
+
+func TestGetFakeIPBlock(t *testing.T) {
+	manager := NewManager()
+	block := manager.GetFakeIPBlock()
+
+	expected := "240.0.0.0/8"
+	if block.String() != expected {
+		t.Errorf("Expected %s, got %s", expected, block.String())
+	}
+}
+
+func TestConcurrentAccess(t *testing.T) {
+	manager := NewManager()
+
+	const numGoroutines = 50
+	const allocationsPerGoroutine = 10
+
+	var wg sync.WaitGroup
+	results := make(chan netip.Addr, numGoroutines*allocationsPerGoroutine)
+
+	// Concurrent allocations
+	for i := 0; i < numGoroutines; i++ {
+		wg.Add(1)
+		go func(goroutineID int) {
+			defer wg.Done()
+			for j := 0; j < allocationsPerGoroutine; j++ {
+				realIP := netip.AddrFrom4([4]byte{192, 168, byte(goroutineID), byte(j)})
+				fakeIP, err := manager.AllocateFakeIP(realIP)
+				if err != nil {
+					t.Errorf("Failed to allocate in goroutine %d: %v", goroutineID, err)
+					return
+				}
+				results <- fakeIP
+			}
+		}(i)
+	}
+
+	wg.Wait()
+	close(results)
+
+	// Check for duplicates
+	seen := make(map[netip.Addr]bool)
+	count := 0
+	for fakeIP := range results {
+		if seen[fakeIP] {
+			t.Errorf("Duplicate fake IP in concurrent test: %s", fakeIP.String())
+		}
+		seen[fakeIP] = true
+		count++
+	}
+
+	if count != numGoroutines*allocationsPerGoroutine {
+		t.Errorf("Expected %d allocations, got %d", numGoroutines*allocationsPerGoroutine, count)
+	}
+}
+
+func TestIPExhaustion(t *testing.T) {
+	// Create a manager with limited range for testing
+	manager := &FakeIPManager{
+		nextIP:     netip.AddrFrom4([4]byte{240, 0, 0, 1}),
+		allocated:  make(map[netip.Addr]netip.Addr),
+		fakeToReal: make(map[netip.Addr]netip.Addr),
+		baseIP:     netip.AddrFrom4([4]byte{240, 0, 0, 1}),
+		maxIP:      netip.AddrFrom4([4]byte{240, 0, 0, 3}), // Only 3 IPs available
+	}
+
+	// Allocate all available IPs
+	realIPs := []netip.Addr{
+		netip.MustParseAddr("1.0.0.1"),
+		netip.MustParseAddr("1.0.0.2"),
+		netip.MustParseAddr("1.0.0.3"),
+	}
+
+	for _, realIP := range realIPs {
+		_, err := manager.AllocateFakeIP(realIP)
+		if err != nil {
+			t.Fatalf("Failed to allocate fake IP: %v", err)
+		}
+	}
+
+	// Try to allocate one more - should fail
+	_, err := manager.AllocateFakeIP(netip.MustParseAddr("1.0.0.4"))
+	if err == nil {
+		t.Error("Expected exhaustion error")
+	}
+}
+
+func TestWrapAround(t *testing.T) {
+	// Create manager starting near the end of range
+	manager := &FakeIPManager{
+		nextIP:     netip.AddrFrom4([4]byte{240, 0, 0, 254}),
+		allocated:  make(map[netip.Addr]netip.Addr),
+		fakeToReal: make(map[netip.Addr]netip.Addr),
+		baseIP:     netip.AddrFrom4([4]byte{240, 0, 0, 1}),
+		maxIP:      netip.AddrFrom4([4]byte{240, 0, 0, 254}),
+	}
+
+	// Allocate the last IP
+	fakeIP1, err := manager.AllocateFakeIP(netip.MustParseAddr("1.0.0.1"))
+	if err != nil {
+		t.Fatalf("Failed to allocate first IP: %v", err)
+	}
+
+	if fakeIP1.String() != "240.0.0.254" {
+		t.Errorf("Expected 240.0.0.254, got %s", fakeIP1.String())
+	}
+
+	// Next allocation should wrap around to the beginning
+	fakeIP2, err := manager.AllocateFakeIP(netip.MustParseAddr("1.0.0.2"))
+	if err != nil {
+		t.Fatalf("Failed to allocate second IP: %v", err)
+	}
+
+	if fakeIP2.String() != "240.0.0.1" {
+		t.Errorf("Expected 240.0.0.1 after wrap, got %s", fakeIP2.String())
+	}
+}
diff --git a/client/internal/routemanager/manager.go b/client/internal/routemanager/manager.go
index 919bf25e3..3319f90d0 100644
--- a/client/internal/routemanager/manager.go
+++ b/client/internal/routemanager/manager.go
@@ -11,6 +11,7 @@ import (
 	"sync"
 	"time"
 
+	"github.com/google/uuid"
 	"github.com/hashicorp/go-multierror"
 	log "github.com/sirupsen/logrus"
 	"golang.org/x/exp/maps"
@@ -24,6 +25,8 @@ import (
 	"github.com/netbirdio/netbird/client/internal/peer"
 	"github.com/netbirdio/netbird/client/internal/peerstore"
 	"github.com/netbirdio/netbird/client/internal/routemanager/client"
+	"github.com/netbirdio/netbird/client/internal/routemanager/common"
+	"github.com/netbirdio/netbird/client/internal/routemanager/fakeip"
 	"github.com/netbirdio/netbird/client/internal/routemanager/iface"
 	"github.com/netbirdio/netbird/client/internal/routemanager/notifier"
 	"github.com/netbirdio/netbird/client/internal/routemanager/refcounter"
@@ -38,6 +41,10 @@ import (
 	"github.com/netbirdio/netbird/version"
 )
 
+type internalDNATer interface {
+	AddInternalDNATMapping(netip.Addr, netip.Addr) error
+}
+
 // Manager is a route manager interface
 type Manager interface {
 	Init() (nbnet.AddHookFunc, nbnet.RemoveHookFunc, error)
@@ -49,7 +56,7 @@ type Manager interface {
 	GetClientRoutesWithNetID() map[route.NetID][]*route.Route
 	SetRouteChangeListener(listener listener.NetworkChangeListener)
 	InitialRouteRange() []string
-	EnableServerRouter(firewall firewall.Manager) error
+	SetFirewall(firewall.Manager) error
 	Stop(stateManager *statemanager.Manager)
 }
 
@@ -89,11 +96,13 @@ type DefaultManager struct {
 	// clientRoutes is the most recent list of clientRoutes received from the Management Service
 	clientRoutes        route.HAMap
 	dnsServer           dns.Server
+	firewall            firewall.Manager
 	peerStore           *peerstore.Store
 	useNewDNSRoute      bool
 	disableClientRoutes bool
 	disableServerRoutes bool
 	activeRoutes        map[route.HAUniqueID]client.RouteHandler
+	fakeIPManager       *fakeip.FakeIPManager
 }
 
 func NewManager(config ManagerConfig) *DefaultManager {
@@ -129,6 +138,8 @@ func NewManager(config ManagerConfig) *DefaultManager {
 	}
 
 	if runtime.GOOS == "android" {
+		dm.fakeIPManager = fakeip.NewManager()
+
 		cr := dm.initialClientRoutes(config.InitialRoutes)
 		dm.notifier.SetInitialClientRoutes(cr)
 	}
@@ -222,16 +233,16 @@ func (m *DefaultManager) initSelector() *routeselector.RouteSelector {
 	return routeselector.NewRouteSelector()
 }
 
-func (m *DefaultManager) EnableServerRouter(firewall firewall.Manager) error {
-	if m.disableServerRoutes {
+// SetFirewall sets the firewall manager for the DefaultManager
+// Not thread-safe, should be called before starting the manager
+func (m *DefaultManager) SetFirewall(firewall firewall.Manager) error {
+	m.firewall = firewall
+
+	if m.disableServerRoutes || firewall == nil {
 		log.Info("server routes are disabled")
 		return nil
 	}
 
-	if firewall == nil {
-		return errors.New("firewall manager is not set")
-	}
-
 	var err error
 	m.serverRouter, err = server.NewRouter(m.ctx, m.wgInterface, firewall, m.statusRecorder)
 	if err != nil {
@@ -299,17 +310,20 @@ func (m *DefaultManager) updateSystemRoutes(newRoutes route.HAMap) error {
 	}
 
 	for id, route := range toAdd {
-		handler := client.HandlerFromRoute(
-			route,
-			m.routeRefCounter,
-			m.allowedIPsRefCounter,
-			m.dnsRouteInterval,
-			m.statusRecorder,
-			m.wgInterface,
-			m.dnsServer,
-			m.peerStore,
-			m.useNewDNSRoute,
-		)
+		params := common.HandlerParams{
+			Route:                route,
+			RouteRefCounter:      m.routeRefCounter,
+			AllowedIPsRefCounter: m.allowedIPsRefCounter,
+			DnsRouterInteval:     m.dnsRouteInterval,
+			StatusRecorder:       m.statusRecorder,
+			WgInterface:          m.wgInterface,
+			DnsServer:            m.dnsServer,
+			PeerStore:            m.peerStore,
+			UseNewDNSRoute:       m.useNewDNSRoute,
+			Firewall:             m.firewall,
+			FakeIPManager:        m.fakeIPManager,
+		}
+		handler := client.HandlerFromRoute(params)
 		if err := handler.AddRoute(m.ctx); err != nil {
 			merr = multierror.Append(merr, fmt.Errorf("add route %s: %w", handler.String(), err))
 			continue
@@ -517,9 +531,27 @@ func (m *DefaultManager) initialClientRoutes(initialRoutes []*route.Route) []*ro
 	for _, routes := range crMap {
 		rs = append(rs, routes...)
 	}
+
+	fakeIPBlock := m.fakeIPManager.GetFakeIPBlock()
+	id := uuid.NewString()
+	fakeIPRoute := &route.Route{
+		ID:          route.ID(id),
+		Network:     fakeIPBlock,
+		NetID:       route.NetID(id),
+		Peer:        m.pubKey,
+		NetworkType: route.IPv4Network,
+	}
+	rs = append(rs, fakeIPRoute)
+
 	return rs
 }
 
+// supportsInternalDNAT checks if the firewall supports internal DNAT
+func (m *DefaultManager) supportsInternalDNAT(fw firewall.Manager) bool {
+	_, ok := fw.(internalDNATer)
+	return ok
+}
+
 func isRouteSupported(route *route.Route) bool {
 	if netstack.IsEnabled() || !nbnet.CustomRoutingDisabled() || route.IsDynamic() {
 		return true
diff --git a/client/internal/routemanager/mock.go b/client/internal/routemanager/mock.go
index 63bad689e..4e182f82c 100644
--- a/client/internal/routemanager/mock.go
+++ b/client/internal/routemanager/mock.go
@@ -15,7 +15,7 @@ import (
 // MockManager is the mock instance of a route manager
 type MockManager struct {
 	ClassifyRoutesFunc           func(routes []*route.Route) (map[route.ID]*route.Route, route.HAMap)
-	UpdateRoutesFunc             func (updateSerial uint64, serverRoutes map[route.ID]*route.Route, clientRoutes route.HAMap, useNewDNSRoute bool) error
+	UpdateRoutesFunc             func(updateSerial uint64, serverRoutes map[route.ID]*route.Route, clientRoutes route.HAMap, useNewDNSRoute bool) error
 	TriggerSelectionFunc         func(haMap route.HAMap)
 	GetRouteSelectorFunc         func() *routeselector.RouteSelector
 	GetClientRoutesFunc          func() route.HAMap
@@ -87,7 +87,7 @@ func (m *MockManager) SetRouteChangeListener(listener listener.NetworkChangeList
 
 }
 
-func (m *MockManager) EnableServerRouter(firewall firewall.Manager) error {
+func (m *MockManager) SetFirewall(firewall.Manager) error {
 	panic("implement me")
 }
 
diff --git a/client/internal/routemanager/notifier/notifier.go b/client/internal/routemanager/notifier/notifier.go
index 25a3a71e0..ebdd60323 100644
--- a/client/internal/routemanager/notifier/notifier.go
+++ b/client/internal/routemanager/notifier/notifier.go
@@ -32,10 +32,6 @@ func (n *Notifier) SetListener(listener listener.NetworkChangeListener) {
 func (n *Notifier) SetInitialClientRoutes(clientRoutes []*route.Route) {
 	nets := make([]string, 0)
 	for _, r := range clientRoutes {
-		// filter out domain routes
-		if r.IsDynamic() {
-			continue
-		}
 		nets = append(nets, r.Network.String())
 	}
 	sort.Strings(nets)
diff --git a/client/internal/routemanager/static/route.go b/client/internal/routemanager/static/route.go
index c8b9338e0..d480fdf00 100644
--- a/client/internal/routemanager/static/route.go
+++ b/client/internal/routemanager/static/route.go
@@ -6,6 +6,7 @@ import (
 
 	log "github.com/sirupsen/logrus"
 
+	"github.com/netbirdio/netbird/client/internal/routemanager/common"
 	"github.com/netbirdio/netbird/client/internal/routemanager/refcounter"
 	"github.com/netbirdio/netbird/route"
 )
@@ -16,11 +17,11 @@ type Route struct {
 	allowedIPsRefcounter *refcounter.AllowedIPsRefCounter
 }
 
-func NewRoute(rt *route.Route, routeRefCounter *refcounter.RouteRefCounter, allowedIPsRefCounter *refcounter.AllowedIPsRefCounter) *Route {
+func NewRoute(params common.HandlerParams) *Route {
 	return &Route{
-		route:                rt,
-		routeRefCounter:      routeRefCounter,
-		allowedIPsRefcounter: allowedIPsRefCounter,
+		route:                params.Route,
+		routeRefCounter:      params.RouteRefCounter,
+		allowedIPsRefcounter: params.AllowedIPsRefCounter,
 	}
 }