diff --git a/setup.sh b/setup.sh
index 9a863d6..b5355e1 100644
--- a/setup.sh
+++ b/setup.sh
@@ -12,6 +12,22 @@ prompt_for_hostname() {
     read -p "Please enter the desired hostname: " hostname
 }
 
+# Function to add hostname and IP to /etc/hosts
+update_hosts_file() {
+    local ip_address
+    ip_address=$(hostname -I | awk '{print $1}')
+    echo "Updating /etc/hosts with IP $ip_address and hostname $hostname..."
+    
+    # Check if the entry already exists
+    if grep -q "$ip_address" /etc/hosts; then
+        echo "Entry for $ip_address already exists in /etc/hosts."
+        sed -i "s/.*$hostname/$ip_address $hostname/" /etc/hosts
+    else
+        echo "$ip_address $hostname" >> /etc/hosts
+        echo "Added $ip_address $hostname to /etc/hosts."
+    fi
+}
+
 # Function to prompt for Docker installation
 prompt_for_docker_install() {
     read -p "Would you like to install Docker CE? (y/n): " install_docker
@@ -90,6 +106,9 @@ prompt_for_hostname
 echo "Setting hostname to $hostname..."
 hostnamectl set-hostname "$hostname"
 
+# Update /etc/hosts
+update_hosts_file
+
 # Create a limited user account
 create_user_account
 
@@ -149,4 +168,4 @@ elif command -v yum &> /dev/null; then
     yum -y autoremove
 fi
 
-echo "System update complete! Timezone set to $timezone, hostname set to $hostname, limited user created, sshd_config modified, and Docker installation completed if selected."
+echo "System update complete! Timezone set to $timezone, hostname set to $hostname, limited user created, sshd_config modified, and Docker installation completed if selected."
\ No newline at end of file