diff --git a/templates/config.alloy.erb b/templates/config.alloy.erb
index c0da51f..85f4b20 100644
--- a/templates/config.alloy.erb
+++ b/templates/config.alloy.erb
@@ -36,7 +36,7 @@ loki.relabel "add_labels" {
   rule {
     action       = "replace"
     target_label = "hostname"
-    replacement  = "fqdn"
+    replacement  = "$HOSTNAME"
   }
   rule {
     action       = "replace"