diff --git a/hack/vendor.sh b/hack/vendor.sh
index bd5da440fd..a250b4cc74 100755
--- a/hack/vendor.sh
+++ b/hack/vendor.sh
@@ -22,7 +22,7 @@ clone git github.com/vdemeester/shakers 3c10293ce22b900c27acad7b28656196fcc2f73b
 clone git golang.org/x/net 3cffabab72adf04f8e3b01c5baf775361837b5fe https://github.com/golang/net.git
 
 #get libnetwork packages
-clone git github.com/docker/libnetwork 5305ea570b85d61dd0fd261cd7e1680da1884678
+clone git github.com/docker/libnetwork 5978c276ad20e104d6acd749da6ee6a8930055ae
 clone git github.com/armon/go-metrics eb0af217e5e9747e41dd5303755356b62d28e3ec
 clone git github.com/hashicorp/go-msgpack 71c2886f5a673a35f909803f38ece5810165097b
 clone git github.com/hashicorp/memberlist 9a1e242e454d2443df330bdd51a436d5a9058fc4
diff --git a/integration-cli/docker_cli_daemon_test.go b/integration-cli/docker_cli_daemon_test.go
index 8d24df8c57..f8e1755233 100644
--- a/integration-cli/docker_cli_daemon_test.go
+++ b/integration-cli/docker_cli_daemon_test.go
@@ -794,7 +794,33 @@ func (s *DockerDaemonSuite) TestDaemonBridgeFixedCidr(c *check.C) {
 	}
 }
 
-func (s *DockerDaemonSuite) TestDaemonBridgeFixedCidrFixedCIDREqualBridgeNetwork(c *check.C) {
+func (s *DockerDaemonSuite) TestDaemonBridgeFixedCidr2(c *check.C) {
+	d := s.d
+
+	bridgeName := "external-bridge"
+	bridgeIP := "10.2.2.1/16"
+
+	out, err := createInterface(c, "bridge", bridgeName, bridgeIP)
+	c.Assert(err, check.IsNil, check.Commentf(out))
+	defer deleteInterface(c, bridgeName)
+
+	err = d.StartWithBusybox("--bip", bridgeIP, "--fixed-cidr", "10.2.2.0/24")
+	c.Assert(err, check.IsNil)
+	defer s.d.Restart()
+
+	out, err = d.Cmd("run", "-d", "--name", "bb", "busybox", "top")
+	c.Assert(err, checker.IsNil, check.Commentf(out))
+	defer d.Cmd("stop", "bb")
+
+	out, err = d.Cmd("exec", "bb", "/bin/sh", "-c", "ifconfig eth0 | awk '/inet addr/{print substr($2,6)}'")
+	c.Assert(out, checker.Equals, "10.2.2.0\n")
+
+	out, err = d.Cmd("run", "--rm", "busybox", "/bin/sh", "-c", "ifconfig eth0 | awk '/inet addr/{print substr($2,6)}'")
+	c.Assert(err, checker.IsNil, check.Commentf(out))
+	c.Assert(out, checker.Equals, "10.2.2.2\n")
+}
+
+func (s *DockerDaemonSuite) TestDaemonBridgeFixedCIDREqualBridgeNetwork(c *check.C) {
 	d := s.d
 
 	bridgeName := "external-bridge"
diff --git a/vendor/src/github.com/docker/libnetwork/controller.go b/vendor/src/github.com/docker/libnetwork/controller.go
index a0cb4cb5d2..e1d8277fac 100644
--- a/vendor/src/github.com/docker/libnetwork/controller.go
+++ b/vendor/src/github.com/docker/libnetwork/controller.go
@@ -128,14 +128,11 @@ type ipamData struct {
 
 type driverTable map[string]*driverData
 
-//type networkTable map[string]*network
-//type endpointTable map[string]*endpoint
 type ipamTable map[string]*ipamData
 type sandboxTable map[string]*sandbox
 
 type controller struct {
-	id string
-	//networks       networkTable
+	id             string
 	drivers        driverTable
 	ipamDrivers    ipamTable
 	sandboxes      sandboxTable
diff --git a/vendor/src/github.com/docker/libnetwork/ipam/allocator.go b/vendor/src/github.com/docker/libnetwork/ipam/allocator.go
index bec7c75343..f90c7c1805 100644
--- a/vendor/src/github.com/docker/libnetwork/ipam/allocator.go
+++ b/vendor/src/github.com/docker/libnetwork/ipam/allocator.go
@@ -220,7 +220,7 @@ func (a *Allocator) parsePoolRequest(addressSpace, pool, subPool string, v6 bool
 			return nil, nil, nil, ipamapi.ErrInvalidPool
 		}
 		if subPool != "" {
-			if ipr, err = getAddressRange(subPool); err != nil {
+			if ipr, err = getAddressRange(subPool, nw); err != nil {
 				return nil, nil, nil, err
 			}
 		}
@@ -431,9 +431,6 @@ func (a *Allocator) ReleaseAddress(poolID string, address net.IP) error {
 	aSpace.Unlock()
 
 	mask := p.Pool.Mask
-	if p.Range != nil {
-		mask = p.Range.Sub.Mask
-	}
 
 	h, err := types.GetHostPartIP(address, mask)
 	if err != nil {
@@ -471,7 +468,6 @@ func (a *Allocator) getAddress(nw *net.IPNet, bitmask *bitseq.Handle, prefAddres
 		ordinal = ipToUint64(types.GetMinimalIP(hostPart))
 		err = bitmask.Set(ordinal)
 	} else {
-		base.IP = ipr.Sub.IP
 		ordinal, err = bitmask.SetAnyInRange(ipr.Start, ipr.End)
 	}
 	if err != nil {
diff --git a/vendor/src/github.com/docker/libnetwork/ipam/utils.go b/vendor/src/github.com/docker/libnetwork/ipam/utils.go
index 2d9c6b17bf..d524b47830 100644
--- a/vendor/src/github.com/docker/libnetwork/ipam/utils.go
+++ b/vendor/src/github.com/docker/libnetwork/ipam/utils.go
@@ -15,12 +15,12 @@ const (
 	v6 = 6
 )
 
-func getAddressRange(pool string) (*AddressRange, error) {
+func getAddressRange(pool string, masterNw *net.IPNet) (*AddressRange, error) {
 	ip, nw, err := net.ParseCIDR(pool)
 	if err != nil {
 		return nil, ipamapi.ErrInvalidSubPool
 	}
-	lIP, e := types.GetHostPartIP(nw.IP, nw.Mask)
+	lIP, e := types.GetHostPartIP(nw.IP, masterNw.Mask)
 	if e != nil {
 		return nil, fmt.Errorf("failed to compute range's lowest ip address: %v", e)
 	}
@@ -28,7 +28,7 @@ func getAddressRange(pool string) (*AddressRange, error) {
 	if e != nil {
 		return nil, fmt.Errorf("failed to compute range's broadcast ip address: %v", e)
 	}
-	hIP, e := types.GetHostPartIP(bIP, nw.Mask)
+	hIP, e := types.GetHostPartIP(bIP, masterNw.Mask)
 	if e != nil {
 		return nil, fmt.Errorf("failed to compute range's highest ip address: %v", e)
 	}