diff --git a/nixos/modules/virtualisation/nixos-containers.nix b/nixos/modules/virtualisation/nixos-containers.nix
index f06977f88fc..3754fe6dac6 100644
--- a/nixos/modules/virtualisation/nixos-containers.nix
+++ b/nixos/modules/virtualisation/nixos-containers.nix
@@ -271,8 +271,8 @@ let
     DeviceAllow = map (d: "${d.node} ${d.modifier}") cfg.allowedDevices;
   };
 
-
   system = config.nixpkgs.localSystem.system;
+  kernelVersion = config.boot.kernelPackages.kernel.version;
 
   bindMountOpts = { name, ... }: {
 
@@ -321,7 +321,6 @@ let
     };
   };
 
-
   mkBindFlag = d:
                let flagPrefix = if d.isReadOnly then " --bind-ro=" else " --bind=";
                    mountstr = if d.hostPath != null then "${d.hostPath}:${d.mountPoint}" else "${d.mountPoint}";
@@ -482,11 +481,16 @@ in
                           networking.useDHCP = false;
                           assertions = [
                             {
-                              assertion =  config.privateNetwork -> stringLength name < 12;
+                              assertion =
+                                (builtins.compareVersions kernelVersion "5.8" <= 0)
+                                -> config.privateNetwork
+                                -> stringLength name <= 11;
                               message = ''
                                 Container name `${name}` is too long: When `privateNetwork` is enabled, container names can
                                 not be longer than 11 characters, because the container's interface name is derived from it.
-                                This might be fixed in the future. See https://github.com/NixOS/nixpkgs/issues/38509
+                                You should either make the container name shorter or upgrade to a more recent kernel that
+                                supports interface altnames (i.e. at least Linux 5.8 - please see https://github.com/NixOS/nixpkgs/issues/38509
+                                for details).
                               '';
                             }
                           ];
diff --git a/nixos/tests/all-tests.nix b/nixos/tests/all-tests.nix
index bf094dbe984..02723f88c31 100644
--- a/nixos/tests/all-tests.nix
+++ b/nixos/tests/all-tests.nix
@@ -72,6 +72,7 @@ in
   containers-imperative = handleTest ./containers-imperative.nix {};
   containers-ip = handleTest ./containers-ip.nix {};
   containers-macvlans = handleTest ./containers-macvlans.nix {};
+  containers-names = handleTest ./containers-names.nix {};
   containers-physical_interfaces = handleTest ./containers-physical_interfaces.nix {};
   containers-portforward = handleTest ./containers-portforward.nix {};
   containers-reloadable = handleTest ./containers-reloadable.nix {};
diff --git a/nixos/tests/containers-names.nix b/nixos/tests/containers-names.nix
new file mode 100644
index 00000000000..9ad2bfb748a
--- /dev/null
+++ b/nixos/tests/containers-names.nix
@@ -0,0 +1,37 @@
+import ./make-test-python.nix ({ pkgs, lib, ... }: {
+  name = "containers-names";
+  meta = {
+    maintainers = with lib.maintainers; [ patryk27 ];
+  };
+
+  machine = { ... }: {
+    # We're using the newest kernel, so that we can test containers with long names.
+    # Please see https://github.com/NixOS/nixpkgs/issues/38509 for details.
+    boot.kernelPackages = pkgs.linuxPackages_latest;
+
+    containers = let
+      container = subnet: {
+        autoStart = true;
+        privateNetwork = true;
+        hostAddress = "192.168.${subnet}.1";
+        localAddress = "192.168.${subnet}.2";
+        config = { };
+      };
+
+     in {
+      first = container "1";
+      second = container "2";
+      really-long-name = container "3";
+      really-long-long-name-2 = container "4";
+    };
+  };
+
+  testScript = ''
+    machine.wait_for_unit("default.target")
+
+    machine.succeed("ip link show | grep ve-first")
+    machine.succeed("ip link show | grep ve-second")
+    machine.succeed("ip link show | grep ve-really-lFYWO")
+    machine.succeed("ip link show | grep ve-really-l3QgY")
+  '';
+})