diff --git a/apisix/init.lua b/apisix/init.lua
index 92d3451b6326..1494dc3c80de 100644
--- a/apisix/init.lua
+++ b/apisix/init.lua
@@ -803,7 +803,21 @@ function _M.stream_preread_phase()
     if up_id then
         api_ctx.matched_upstream = get_upstream_by_id(up_id)
     else
-        api_ctx.matched_upstream = matched_route.value.upstream
+        if matched_route.has_domain then
+            local err
+            matched_route, err = parse_domain_in_route(matched_route)
+            if err then
+                core.log.error("failed to get resolved route: ", err)
+                return ngx_exit(1)
+            end
+
+            api_ctx.matched_route = matched_route
+        end
+
+        local route_val = matched_route.value
+        api_ctx.matched_upstream = (matched_route.dns_value and
+                                    matched_route.dns_value.upstream)
+                                   or route_val.upstream
     end
 
     local plugins = core.tablepool.fetch("plugins", 32, 0)
diff --git a/t/stream-node/upstream-domain.t b/t/stream-node/upstream-domain.t
new file mode 100644
index 000000000000..0036d00a7e10
--- /dev/null
+++ b/t/stream-node/upstream-domain.t
@@ -0,0 +1,201 @@
+#
+# Licensed to the Apache Software Foundation (ASF) under one or more
+# contributor license agreements.  See the NOTICE file distributed with
+# this work for additional information regarding copyright ownership.
+# The ASF licenses this file to You under the Apache License, Version 2.0
+# (the "License"); you may not use this file except in compliance with
+# the License.  You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#
+use t::APISIX 'no_plan';
+
+log_level('info');
+no_root_location();
+
+add_block_preprocessor(sub {
+    my ($block) = @_;
+
+    if (!$block->request) {
+        $block->set_value("stream_enable", 1);
+
+        if (!$block->stream_request) {
+            $block->set_value("stream_request", "mmm");
+        }
+    }
+
+    if ((!defined $block->error_log) && (!defined $block->no_error_log)) {
+        $block->set_value("no_error_log", "[error]");
+    }
+});
+
+run_tests();
+
+__DATA__
+
+=== TEST 1: set upstream & stream_routes (id: 1)
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/upstreams/1',
+                ngx.HTTP_PUT,
+                [[{
+                    "nodes": {
+                        "localhost:1995": 1
+                    },
+                    "type": "roundrobin"
+                }]]
+            )
+            if code >= 300 then
+                ngx.status = code
+                return
+            end
+            local code, body = t('/apisix/admin/stream_routes/1',
+                ngx.HTTP_PUT,
+                [[{
+                    "remote_addr": "127.0.0.1",
+                    "upstream_id": "1"
+                }]]
+            )
+            if code >= 300 then
+                ngx.status = code
+            end
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+
+
+
+=== TEST 2: hit route
+--- stream_response
+hello world
+
+
+
+=== TEST 3: set stream_routes with upstream(id: 1)
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/stream_routes/1',
+                ngx.HTTP_PUT,
+                [[{
+                    "remote_addr": "127.0.0.1",
+                    "upstream": {
+                        "nodes": {
+                            "localhost:1995": 1
+                        },
+                        "type": "roundrobin"
+                    }
+                }]]
+            )
+            if code >= 300 then
+                ngx.status = code
+            end
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+
+
+
+=== TEST 4: hit route
+--- stream_response
+hello world
+
+
+
+=== TEST 5: bad domain in the upstream
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/upstreams/1',
+                ngx.HTTP_PUT,
+                [[{
+                    "nodes": {
+                        "local:1995": 1
+                    },
+                    "type": "roundrobin"
+                }]]
+            )
+            if code >= 300 then
+                ngx.status = code
+                return
+            end
+            local code, body = t('/apisix/admin/stream_routes/1',
+                ngx.HTTP_PUT,
+                [[{
+                    "remote_addr": "127.0.0.1",
+                    "upstream_id": "1"
+                }]]
+            )
+            if code >= 300 then
+                ngx.status = code
+            end
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+
+
+
+=== TEST 6: hit route
+--- stream_response
+receive stream response error: connection reset by peer
+--- error_log
+
+
+
+=== TEST 7: bad domain in the stream route
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/stream_routes/1',
+                ngx.HTTP_PUT,
+                [[{
+                    "remote_addr": "127.0.0.1",
+                    "upstream": {
+                        "nodes": {
+                            "local:1995": 1
+                        },
+                        "type": "roundrobin"
+                    }
+                }]]
+            )
+            if code >= 300 then
+                ngx.status = code
+            end
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+
+
+
+=== TEST 8: hit route
+--- stream_response
+receive stream response error: connection reset by peer
+--- error_log
+no valid upstream node