diff --git a/drivers/softlayer/driver.go b/drivers/softlayer/driver.go
index 3f707a1a8a..a58a08dc2a 100644
--- a/drivers/softlayer/driver.go
+++ b/drivers/softlayer/driver.go
@@ -148,8 +148,8 @@ func GetCreateFlags() []cli.Flag {
 		cli.StringFlag{
 			EnvVar: "SOFTLAYER_HOSTNAME",
 			Name:   "softlayer-hostname",
-			Usage:  "hostname for the machine",
-			Value:  "docker",
+			Usage:  "hostname for the machine - defaults to machine name",
+			Value:  "",
 		},
 		cli.StringFlag{
 			EnvVar: "SOFTLAYER_DOMAIN",
@@ -200,9 +200,6 @@ func GetCreateFlags() []cli.Flag {
 }
 
 func validateDeviceConfig(c *deviceConfig) error {
-	if c.Hostname == "" {
-		return fmt.Errorf("Missing required setting - --softlayer-hostname")
-	}
 	if c.Domain == "" {
 		return fmt.Errorf("Missing required setting - --softlayer-domain")
 	}
@@ -275,6 +272,11 @@ func (d *Driver) SetConfigFromFlags(flags drivers.DriverOptions) error {
 		PublicVLAN:    flags.Int("softlayer-public-vlan-id"),
 		PrivateVLAN:   flags.Int("softlayer-private-vlan-id"),
 	}
+
+	if d.deviceConfig.Hostname == "" {
+		d.deviceConfig.Hostname = d.GetMachineName()
+	}
+
 	return validateDeviceConfig(d.deviceConfig)
 }
 
diff --git a/drivers/softlayer/driver_test.go b/drivers/softlayer/driver_test.go
index 1dbdc01dc4..c2f7e2d078 100644
--- a/drivers/softlayer/driver_test.go
+++ b/drivers/softlayer/driver_test.go
@@ -4,6 +4,8 @@ import (
 	"io/ioutil"
 	"os"
 	"testing"
+
+	"github.com/stretchr/testify/assert"
 )
 
 const (
@@ -81,10 +83,16 @@ func getTestDriver() (*Driver, error) {
 }
 
 func TestSetConfigFromFlagsSetsImage(t *testing.T) {
-	d, _ := getTestDriver()
+	d, err := getTestDriver()
 
-	img := d.deviceConfig.Image
-	if img != "MY_TEST_IMAGE" {
-		t.Fatalf("expected 'MY_TEST_IMAGE'; received %s", img)
+	if assert.NoError(t, err) {
+		assert.Equal(t, "MY_TEST_IMAGE", d.deviceConfig.Image)
+	}
+}
+
+func TestHostnameDefaultsToMachineName(t *testing.T) {
+	d, err := getTestDriver()
+	if assert.NoError(t, err) {
+		assert.Equal(t, machineTestName, d.deviceConfig.Hostname)
 	}
 }