Dnsmasq – Conditional DNS Forwarding for Windows Active Directory Domains

Let’s say your Windows domain is “domain.local” and your Windows DNS IP address is “192.168.1.55” and “192.168.1.56”
In OpenWrt, add this to /etc/config/dhcp:

        option rebind_protection '0'
        list server '/domain.local/192.168.1.55'
list server '/domain.local/192.168.1.56'

The trick here which isn’t well documented is that rebind protection MUST be set to ‘0’ otherwise lookups for *.domain.local will fail.
UPDATE: Be sure to NOT have filterwin2k set in dnsmasq (/etc/config/dhcp), if you do, gpupdate and AD-domain lookups will fail.

Now your other computers/devices/servers that use the dnsmasq DNS-server can resolve computers that are AD-connected.