diff --git a/core/src/com/cloud/domain/dao/DomainDao.java b/core/src/com/cloud/domain/dao/DomainDao.java
index 7bbff1624dd..1716755ab1d 100644
--- a/core/src/com/cloud/domain/dao/DomainDao.java
+++ b/core/src/com/cloud/domain/dao/DomainDao.java
@@ -18,6 +18,8 @@
 
 package com.cloud.domain.dao;
 
+import java.util.List;
+
 import com.cloud.domain.DomainVO;
 import com.cloud.utils.db.GenericDao;
 
@@ -25,5 +27,6 @@ public interface DomainDao extends GenericDao<DomainVO, Long> {
     public void update(Long id, String domainName);
     public DomainVO create(DomainVO domain);
     public DomainVO findDomainByPath(String domainPath);
-    public boolean isChildDomain(Long parentId, Long childId);
+    public boolean isChildDomain(Long parentId, Long childId);
+    List<DomainVO> listDomainChildren(long parentDomainId);
 }
diff --git a/core/src/com/cloud/domain/dao/DomainDaoImpl.java b/core/src/com/cloud/domain/dao/DomainDaoImpl.java
index b56eb9cb7f6..3ba6cb303d9 100644
--- a/core/src/com/cloud/domain/dao/DomainDaoImpl.java
+++ b/core/src/com/cloud/domain/dao/DomainDaoImpl.java
@@ -40,7 +40,8 @@ public class DomainDaoImpl extends GenericDaoBase<DomainVO, Long> implements Dom
     
 	protected SearchBuilder<DomainVO> DomainNameLikeSearch;
 	protected SearchBuilder<DomainVO> ParentDomainNameLikeSearch;
-	protected SearchBuilder<DomainVO> DomainPairSearch;
+	protected SearchBuilder<DomainVO> DomainPairSearch;
+	protected SearchBuilder<DomainVO> ChildDomainsSearch;
 	
 	public DomainDaoImpl () {
 		DomainNameLikeSearch = createSearchBuilder();
@@ -54,7 +55,12 @@ public class DomainDaoImpl extends GenericDaoBase<DomainVO, Long> implements Dom
 
 		DomainPairSearch = createSearchBuilder();
 		DomainPairSearch.and("id", DomainPairSearch.entity().getId(), SearchCriteria.Op.IN);
-		DomainPairSearch.done();
+		DomainPairSearch.done();
+		
+		ChildDomainsSearch = createSearchBuilder();
+		ChildDomainsSearch.and("path", ChildDomainsSearch.entity().getPath(), SearchCriteria.Op.LIKE);
+		ChildDomainsSearch.and("id", ChildDomainsSearch.entity().getId(), SearchCriteria.Op.NEQ);
+		ChildDomainsSearch.done();
 	}
 	
     public void update(Long id, String domainName) {
@@ -218,5 +224,15 @@ public class DomainDaoImpl extends GenericDaoBase<DomainVO, Long> implements Dom
             }
         }
         return result;
+    }
+    
+    @Override
+    public List<DomainVO> listDomainChildren(long parentDomainId) {
+        DomainVO parentDomain = findById(parentDomainId);
+        SearchCriteria sc = ChildDomainsSearch.create();
+        sc.setParameters("path", parentDomain.getPath() + "%");
+        //don't include parent domain 
+        sc.setParameters("id", parentDomainId);
+        return listBy(sc);
     }
 }
diff --git a/server/src/com/cloud/server/ManagementServerImpl.java b/server/src/com/cloud/server/ManagementServerImpl.java
index 007d8bd5246..39e4c6dc954 100755
--- a/server/src/com/cloud/server/ManagementServerImpl.java
+++ b/server/src/com/cloud/server/ManagementServerImpl.java
@@ -3820,18 +3820,18 @@ public class ManagementServerImpl implements ManagementServer {
         //if account doesn't have direct ip addresses and there are no direct Zone wide vlans, return virtual service offerings only
         List<VlanVO> accountDirectVlans = new ArrayList<VlanVO>();
         List<VlanVO> zoneDirectVlans = new ArrayList<VlanVO>();
-        if (accountId != null || zoneId != null) {
-            if (accountId != null && zoneId != null) {
-                accountDirectVlans = _vlanDao.listVlansForAccountByType(null, ((Long)accountId).longValue(), VlanType.DirectAttached);
-                zoneDirectVlans = listZoneWideVlansByType(VlanType.DirectAttached, (Long)zoneId);
-            } else if (zoneId != null) {
-                zoneDirectVlans = listZoneWideVlansByType(VlanType.DirectAttached, (Long)zoneId);
-            }  
-            
+        if (accountId != null && zoneId != null) {
+            accountDirectVlans = _vlanDao.listVlansForAccountByType(null, ((Long)accountId).longValue(), VlanType.DirectAttached);
+            zoneDirectVlans = listZoneWideVlansByType(VlanType.DirectAttached, (Long)zoneId);
             if (accountDirectVlans.isEmpty() && zoneDirectVlans.isEmpty()) {
                 sc.addAnd("guestIpType", SearchCriteria.Op.EQ, GuestIpType.Virtualized);
             }
-        }
+        } else if (zoneId != null) {
+            zoneDirectVlans = listZoneWideVlansByType(VlanType.DirectAttached, (Long)zoneId);
+            if (zoneDirectVlans.isEmpty()) {
+                sc.addAnd("guestIpType", SearchCriteria.Op.EQ, GuestIpType.Virtualized);
+            }
+        }  
         
         
         return _offeringsDao.search(sc, searchFilter);
@@ -6243,14 +6243,38 @@ public class ManagementServerImpl implements ManagementServer {
         return success && deleteDomainSuccess;
     }
 
+    @DB
     public void updateDomain(Long domainId, String domainName) {
         SearchCriteria sc = _domainDao.createSearchCriteria();
         sc.addAnd("name", SearchCriteria.Op.EQ, domainName);
         List<DomainVO> domains = _domainDao.search(sc, null);
+        Transaction txn = Transaction.currentTxn();
+        
+        
         if ((domains == null) || domains.isEmpty()) {
-            _domainDao.update(domainId, domainName);
+            txn.start();
             DomainVO domain = _domainDao.findById(domainId);
+            String newName = domainName;
+            String oldName = domain.getName();
+            domain.setName(newName);
+            _domainDao.update(domainId, domain);
+              
+            //update path for parent domain and all domain children
+            List<DomainVO> domainChildren = _domainDao.listDomainChildren(domainId);
+            domainChildren.add(domain);
+            
+            String parentPath = domain.getPath().substring(0, domain.getPath().length() - oldName.length()-1);
+            
+            for (DomainVO domainChild : domainChildren) {
+                String originalPath = domainChild.getPath();
+                String resultPath =  parentPath + newName + originalPath.substring(parentPath.length() + oldName.length()); 
+                
+                domainChild.setPath(resultPath);
+                _domainDao.update(domainChild.getId(), domainChild);
+            }
+            
             saveEvent(new Long(1), domain.getOwner(), EventVO.LEVEL_INFO, EventTypes.EVENT_DOMAIN_UPDATE, "Domain, " + domainName + " was updated");
+            txn.commit();
         } else {
             DomainVO domain = _domainDao.findById(domainId);
             saveEvent(new Long(1), domain.getOwner(), EventVO.LEVEL_ERROR, EventTypes.EVENT_DOMAIN_UPDATE, "Failed to update domain " + domain.getName() + " with name " + domainName + ", name in use.");