diff --git a/src/devices/nm-device.c b/src/devices/nm-device.c
index 1a0bcdca09..7b939ac508 100644
--- a/src/devices/nm-device.c
+++ b/src/devices/nm-device.c
@@ -1681,6 +1681,12 @@ nm_device_generate_connection (NMDevice *device)
 		g_object_set (s_con, NM_SETTING_CONNECTION_TYPE, klass->connection_type, NULL);
 	nm_connection_add_setting (connection, s_con);
 
+	/* Bind loopback connection to 'lo' device */
+	if (nm_platform_link_get_type (ifindex) == NM_LINK_TYPE_LOOPBACK)
+		g_object_set (s_con,
+		              NM_SETTING_CONNECTION_INTERFACE_NAME, ifname,
+		              NULL);
+
 	/* If the device is a slave, update various slave settings */
 	if (ifindex)
 		master_ifindex = nm_platform_link_get_master (ifindex);