This is a fairly old thread but I thought I'd throw my own experience
in. I'm using 16.04.2, and the breakage happened when I last did a
system update (about a week ago). Previously, it was working perfectly
with the following configuration:

1. uninstalled resolvconf
2. Added 'dns=dnsmasq' to /etc/NetworkManager/NetworkManager.conf
3. Using Cisco compatible (vpnc) VPN

My resolv.conf has always used '', and name resolution via
dnsmasq worked fine on or off the VPN. Since the upgrade, dnsmasq name
resolution is broken. If I 'sudo pkill dnsmasq', NetworkManager just
dumps all of the DNS server entries into /etc/resolv.conf and removes (thus temporarily fixing the issue).

If I strace dnsmasq, I can it hitting my local DNS servers (never the
VPN DNS servers) but it still never gets an answer, even for something
like ''.

Here's something weirder. I can start the dnsmasq service (sudo
systemctl start dnsmasq.service) it binds to (NetworkManager-
owned dnsmasq uses This works PERFECTLY. I can dig
@ for pretty much any host on the internet or the VPN and I get
an answer.

The two processes run different commands:
Systemd Service:
/usr/sbin/dnsmasq -x /var/run/dnsmasq/ -u dnsmasq -7 
/etc/dnsmasq.d,.dpkg-dist,.dpkg-old,.dpkg-new --local-service 

NetworkManager owned service:
/usr/sbin/dnsmasq --no-resolv --keep-in-foreground --no-hosts --bind-interfaces 
--pid-file=/var/run/NetworkManager/ --listen-address= 
--cache-size=0 --conf-file=/dev/null --proxy-dnssec 

If I edit the /etc/resolv.conf and as a nameserver and
everything is fine.

You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to dnsmasq in Ubuntu.

  dnsmasq not working with OpenVPN

Status in dnsmasq package in Ubuntu:
Status in openvpn-systemd-resolved package in Ubuntu:

Bug description:
  I'm using OpenVPN configured with Network Manager. My VPN have a DNS
  server configured by OpenVPN and config pushed by it while connecting.
  This server is not registered by dnsmasq so domain names are not
  resolved but pinging by IP address works. When I test name resolving
  by pointing to DNS server ( from VPN provider it's works.
  For example:

  $ host
  Using domain server:
  Aliases: has address has IPv6 address 2607:f8b0:400b:807::200e mail is handled by 30 mail is handled by 20 mail is handled by 40 mail is handled by 10 mail is handled by 50

  But if I test without pointing DNS server is not working:

  $ host
  ;; connection timed out; no servers could be reached

  My /etc/resolv.conf:
  # Dynamic resolv.conf(5) file for glibc resolver(3) generated by resolvconf(8)

  To repair this bug I have to kill dnsmasq and it's automatically

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