diff --git a/src/docker-in-docker/devcontainer-feature.json b/src/docker-in-docker/devcontainer-feature.json
index 2710a2e32..ae99cb12b 100644
--- a/src/docker-in-docker/devcontainer-feature.json
+++ b/src/docker-in-docker/devcontainer-feature.json
@@ -1,6 +1,6 @@
 {
   "id": "docker-in-docker",
-  "version": "4.0.0",
+  "version": "4.1.0",
   "name": "Docker (Docker-in-Docker)",
   "documentationURL": "https://github.com/devcontainers/features/tree/main/src/docker-in-docker",
   "description": "Create child containers *inside* a container, independent from the host's docker instance. Installs Docker extension in the container along with needed CLIs.",
@@ -47,6 +47,12 @@
       "proposals": [],
       "description": "Define default address pools for Docker networks. e.g. base=192.168.0.0/16,size=24"
     },
+    "dockerHostGatewayIP": {
+      "type": "string",
+      "default": "",
+      "proposals": [],
+      "description": "Set the IP used to resolve the special 'host-gateway' value in --add-host. e.g. 192.168.0.1"
+    },
     "installDockerBuildx": {
       "type": "boolean",
       "default": true,
diff --git a/src/docker-in-docker/install.sh b/src/docker-in-docker/install.sh
index dbef9ae32..5c91452f1 100755
--- a/src/docker-in-docker/install.sh
+++ b/src/docker-in-docker/install.sh
@@ -14,6 +14,7 @@ MOBY_BUILDX_VERSION="${MOBYBUILDXVERSION:-"latest"}"
 DOCKER_DASH_COMPOSE_VERSION="${DOCKERDASHCOMPOSEVERSION:-"latest"}" #v1, v2, latest or none
 AZURE_DNS_AUTO_DETECTION="${AZUREDNSAUTODETECTION:-"true"}"
 DOCKER_DEFAULT_ADDRESS_POOL="${DOCKERDEFAULTADDRESSPOOL:-""}"
+DOCKER_HOST_GATEWAY_IP="${DOCKERHOSTGATEWAYIP:-""}"
 USERNAME="${USERNAME:-"${_REMOTE_USER:-"automatic"}"}"
 INSTALL_DOCKER_BUILDX="${INSTALLDOCKERBUILDX:-"true"}"
 INSTALL_DOCKER_COMPOSE_SWITCH="${INSTALLDOCKERCOMPOSESWITCH:-"false"}"
@@ -973,6 +974,7 @@ set -e
 
 AZURE_DNS_AUTO_DETECTION=${AZURE_DNS_AUTO_DETECTION}
 DOCKER_DEFAULT_ADDRESS_POOL=${DOCKER_DEFAULT_ADDRESS_POOL}
+DOCKER_HOST_GATEWAY_IP=${DOCKER_HOST_GATEWAY_IP}
 DOCKER_DEFAULT_IP6_TABLES=${DOCKER_DEFAULT_IP6_TABLES}
 EOF
 
@@ -1001,7 +1003,7 @@ fi
 
 tee -a /usr/local/share/docker-init.sh > /dev/null \
 << 'EOF'
-dockerd_start="AZURE_DNS_AUTO_DETECTION=${AZURE_DNS_AUTO_DETECTION} DOCKER_DEFAULT_ADDRESS_POOL=${DOCKER_DEFAULT_ADDRESS_POOL} DOCKER_DEFAULT_IP6_TABLES=${DOCKER_DEFAULT_IP6_TABLES} $(cat << 'INNEREOF'
+dockerd_start="AZURE_DNS_AUTO_DETECTION=${AZURE_DNS_AUTO_DETECTION} DOCKER_DEFAULT_ADDRESS_POOL=${DOCKER_DEFAULT_ADDRESS_POOL} DOCKER_HOST_GATEWAY_IP=${DOCKER_HOST_GATEWAY_IP} DOCKER_DEFAULT_IP6_TABLES=${DOCKER_DEFAULT_IP6_TABLES} $(cat << 'INNEREOF'
     # explicitly remove dockerd and containerd PID file to ensure that it can start properly if it was stopped uncleanly
     find /run /var/run -iname 'docker*.pid' -delete || :
     find /run /var/run -iname 'container*.pid' -delete || :
@@ -1078,6 +1080,13 @@ dockerd_start="AZURE_DNS_AUTO_DETECTION=${AZURE_DNS_AUTO_DETECTION} DOCKER_DEFAU
         DEFAULT_ADDRESS_POOL="--default-address-pool $DOCKER_DEFAULT_ADDRESS_POOL"
     fi
 
+    if [ -z "$DOCKER_HOST_GATEWAY_IP" ]
+    then
+        HOST_GATEWAY_IP=""
+    else
+        HOST_GATEWAY_IP="--host-gateway-ip $DOCKER_HOST_GATEWAY_IP"
+    fi
+
 
     # Start our own containerd so it picks up /etc/containerd/config.toml
     # (notably the disabled_plugins entry for the erofs snapshotter, see
@@ -1113,7 +1122,7 @@ dockerd_start="AZURE_DNS_AUTO_DETECTION=${AZURE_DNS_AUTO_DETECTION} DOCKER_DEFAU
     fi
 
     # Start docker/moby engine
-    ( dockerd $DOCKERD_CONTAINERD_ARG $CUSTOMDNS $DEFAULT_ADDRESS_POOL $DOCKER_DEFAULT_IP6_TABLES > /tmp/dockerd.log 2>&1 ) &
+    ( dockerd $DOCKERD_CONTAINERD_ARG $CUSTOMDNS $DEFAULT_ADDRESS_POOL $HOST_GATEWAY_IP $DOCKER_DEFAULT_IP6_TABLES > /tmp/dockerd.log 2>&1 ) &
 INNEREOF
 )"
 
diff --git a/test/docker-in-docker/dockerHostGatewayIP.sh b/test/docker-in-docker/dockerHostGatewayIP.sh
new file mode 100755
index 000000000..88ca752f0
--- /dev/null
+++ b/test/docker-in-docker/dockerHostGatewayIP.sh
@@ -0,0 +1,12 @@
+#!/bin/bash
+
+set -e
+
+# Optional: Import test library
+source dev-container-features-test-lib
+
+# Definition specific tests
+check "host gateway ip setting set" ps -ax | grep -v grep | grep -E "dockerd.+--host-gateway-ip 192.168.0.1"
+
+# Report result
+reportResults
diff --git a/test/docker-in-docker/scenarios.json b/test/docker-in-docker/scenarios.json
index a4ee2a3b0..302f5bcee 100644
--- a/test/docker-in-docker/scenarios.json
+++ b/test/docker-in-docker/scenarios.json
@@ -92,6 +92,15 @@
             }
         }
     },
+    "dockerHostGatewayIP": {
+        "image": "mcr.microsoft.com/vscode/devcontainers/javascript-node:0-18",
+        "remoteUser": "node",
+        "features": {
+            "docker-in-docker": {
+                "dockerHostGatewayIP": "192.168.0.1"
+            }
+        }
+    },
     "azureDnsAutoDetectionEnabled": {
         "image": "mcr.microsoft.com/vscode/devcontainers/javascript-node:0-18",
         "remoteUser": "node",