I have a dd-wrt router with DNSmasq functioning as the DNS server for local hosts. DNSmasq resolves external domains using Google DNS (8.8.8.8/8.8.4.4). With this setup, domain names like 192.168.X.X.xip.io and 127.X.X.X.xip.io won't resolve, and I believe there is something wrong with my DNSmasq setup. Anyone else ran into similar issues?

(Update) Problem solved by myself. The DNSmasq config has stop-dns-rebind option enabled, which filters out DNS results in private IP ranges from upstream servers for security reasons. DNSmasq doc has the following part:

    -stop-dns-rebind

Reject (and log) addresses from upstream nameservers which are in the private IP ranges. This blocks an attack where a browser behind a firewall is used to probe machines on the local network.

In case you run into this issue, just comment out this option in dnsmasq.conf and restart dnsmasq.