diff --git a/esphome/components/wifi/wifi_component_esp8266.cpp b/esphome/components/wifi/wifi_component_esp8266.cpp
index 4e94f86ef53..6f8decc0ae7 100644
--- a/esphome/components/wifi/wifi_component_esp8266.cpp
+++ b/esphome/components/wifi/wifi_component_esp8266.cpp
@@ -16,8 +16,7 @@ extern "C" {
 #include "lwip/err.h"
 #include "lwip/dns.h"
 #include "lwip/dhcp.h"
-#include "lwip/prot/dhcp.h"  // DHCP_STATE_BOUND
-#include "lwip/init.h"       // LWIP_VERSION_
+#include "lwip/init.h"  // LWIP_VERSION_
 #include "lwip/apps/sntp.h"
 #include "lwip/netif.h"  // struct netif
 #include <AddrList.h>
@@ -217,34 +216,17 @@ bool WiFiComponent::wifi_apply_hostname_() {
     ESP_LOGV(TAG, "Set hostname failed");
   }
 
-  // inform dhcp server of hostname change using dhcp_renew()
+  // Update hostname on all lwIP interfaces so DHCP packets include it.
+  // No dhcp_renew() call here — the hostname is fixed at compile time and
+  // this function is only called during setup() or wifi_sta_connect_() when
+  // the interface is always disconnected. lwIP includes the hostname in
+  // DHCP DISCOVER/REQUEST automatically via LWIP_NETIF_HOSTNAME.
   for (netif *intf = netif_list; intf; intf = intf->next) {
-    // unconditionally update all known interfaces
 #if LWIP_VERSION_MAJOR == 1
     intf->hostname = (char *) wifi_station_get_hostname();
 #else
     intf->hostname = wifi_station_get_hostname();
 #endif
-    struct dhcp *dhcp_data = netif_dhcp_data(intf);
-    if (dhcp_data != nullptr && dhcp_data->state == DHCP_STATE_BOUND && netif_is_link_up(intf)) {
-      // Renew already-bound DHCP leases to inform server of hostname change.
-      // Both conditions are required:
-      //  - DHCP must be BOUND (have an active lease to renew)
-      //  - Interface must have link (able to send packets)
-      // During reconnection, DHCP can remain BOUND from a previous connection
-      // while the link is down. Calling dhcp_renew() without link corrupts
-      // lwIP's DHCP state machine (it unconditionally sets state to RENEWING
-      // before attempting to send, and never rolls back on failure). This
-      // causes dhcp_network_changed() to call dhcp_reboot() instead of
-      // dhcp_discover() when WiFi later connects, sending a bogus DHCP REQUEST
-      // for IP 0.0.0.0 that can put some routers into a persistent bad state.
-      err_t lwipret = dhcp_renew(intf);
-      if (lwipret != ERR_OK) {
-        ESP_LOGW(TAG, "wifi_apply_hostname_(%s): lwIP error %d on interface %c%c (index %d)", intf->hostname,
-                 (int) lwipret, intf->name[0], intf->name[1], intf->num);
-        ret = false;
-      }
-    }
   }
 
   return ret;