diff --git a/src/core/net/dns_types.cpp b/src/core/net/dns_types.cpp
index c8d1c5bab..1d3a89aae 100644
--- a/src/core/net/dns_types.cpp
+++ b/src/core/net/dns_types.cpp
@@ -775,6 +775,15 @@ Error Name::ValidateName(const char *aName)
     VerifyOrExit(length > 0, error = kErrorInvalidArgs);
     VerifyOrExit(length <= kMaxNameLength, error = kErrorInvalidArgs);
 
+    if (length == kMaxNameLength)
+    {
+        // Allow `kMaxNameLength` only if the `aName` ends with a dot.
+        // This ensures that the encoded name always fits within the
+        // `kMaxEncodedLength = 255` octets.
+
+        VerifyOrExit(aName[length - 1] == kLabelSeparatorChar, error = kErrorInvalidArgs);
+    }
+
     do
     {
         ch = aName[index];
diff --git a/tests/unit/test_dns.cpp b/tests/unit/test_dns.cpp
index 860a4469d..38410da46 100644
--- a/tests/unit/test_dns.cpp
+++ b/tests/unit/test_dns.cpp
@@ -485,9 +485,13 @@ void TestDnsName(void)
 
         IgnoreError(message->SetLength(0));
 
-        printf("\"%s\"\n", maxLengthName);
+        printf("\"%s\" (len:%u)\n", maxLengthName, static_cast<uint16_t>(strlen(maxLengthName)));
+
+        SuccessOrQuit(Dns::Name::ValidateName(maxLengthName));
 
         SuccessOrQuit(Dns::Name::AppendName(maxLengthName, *message));
+
+        VerifyOrQuit(message->GetLength() == Dns::Name::kMaxNameSize);
     }
 
     printf("----------------------------------------------------------------\n");
@@ -497,7 +501,9 @@ void TestDnsName(void)
     {
         IgnoreError(message->SetLength(0));
 
-        printf("\"%s\"\n", invalidName);
+        printf("\"%s\" (len:%u)\n", invalidName, static_cast<uint16_t>(strlen(invalidName)));
+
+        VerifyOrQuit(Dns::Name::ValidateName(invalidName) != kErrorNone);
 
         VerifyOrQuit(Dns::Name::AppendName(invalidName, *message) == kErrorInvalidArgs);
     }