diff --git a/package/network/services/dnsmasq/Makefile b/package/network/services/dnsmasq/Makefile
index 784912a9e0..39df9e95e2 100644
--- a/package/network/services/dnsmasq/Makefile
+++ b/package/network/services/dnsmasq/Makefile
@@ -8,12 +8,12 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=dnsmasq
-PKG_VERSION:=2.77rc3
-PKG_RELEASE:=2
+PKG_VERSION:=2.77rc5
+PKG_RELEASE:=1
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.xz
 PKG_SOURCE_URL:=http://thekelleys.org.uk/dnsmasq/release-candidates
-PKG_HASH:=2ba2fcf5728581c559d7deb036f5d3298d5aa1ae44d1cac795b092d553e0bf63
+PKG_HASH:=d9447e9307234c4818ca0e0d9818e1d62da65eaf32ee37ea9bdc47c82068f560
 
 PKG_LICENSE:=GPL-2.0
 PKG_LICENSE_FILES:=COPYING