diff --git a/src/packages/fff/fff-babeld/files/etc/config/babeld b/src/packages/fff/fff-babeld/files/etc/config/babeld
index a62788a..e3a7584 100644
--- a/src/packages/fff/fff-babeld/files/etc/config/babeld
+++ b/src/packages/fff/fff-babeld/files/etc/config/babeld
@@ -22,6 +22,11 @@ config filter
 	option local 'true'
 	option ip 'fd43:5602:29bd::/48'
 
+config filter
+	option type 'redistribute'
+	option local 'true'
+	option interface 'lo'
+
 config filter
 	option type 'redistribute'
 	option local 'true'
diff --git a/src/packages/fff/fff-babeld/files/etc/layer3.d/40-babel b/src/packages/fff/fff-babeld/files/etc/layer3.d/40-babel
index c238cc1..9e7e77e 100644
--- a/src/packages/fff/fff-babeld/files/etc/layer3.d/40-babel
+++ b/src/packages/fff/fff-babeld/files/etc/layer3.d/40-babel
@@ -90,6 +90,21 @@ configure() {
 	for prefix in $(uci -q get gateway.@client[0].ip6addr); do
 		babel_add_redistribute_filter "$prefix"
 	done
+
+	# clean up old peer ips
+	uci -q del network.loopback.ipaddr
+	uci -q del network.loopback.ip6addr
+
+	# remove netmask entry that ships by default
+	uci -q del network.loopback.netmask
+
+	# re-add loopback addresses
+	uci -q add_list network.loopback.ipaddr="127.0.0.1/8"
+	uci -q add_list network.loopback.ip6addr="::1/128"
+
+	# add peer ips to lo to be redistributed
+	peerip=$(uci -q get gateway.@gateway[0].peer_ip) && uci -q add_list network.loopback.ipaddr="${peerip}/32"
+	peerip6=$(uci -q get gateway.@gateway[0].peer_ip6) && uci -q add_list network.loopback.ip6addr="${peerip6}/128"
 }
 
 apply() {