diff --git a/libnm-core/nm-setting-wired.c b/libnm-core/nm-setting-wired.c
index 5569f55848..5476e357f4 100644
--- a/libnm-core/nm-setting-wired.c
+++ b/libnm-core/nm-setting-wired.c
@@ -1150,7 +1150,8 @@ nm_setting_wired_class_init (NMSettingWiredClass *setting_wired_class)
 	 * Beside explicitly specifing a MAC address, the special values "preserve", "permanent",
 	 * "random" and "stable" are supported.
 	 * "preserve" means not to touch the MAC address on activation.
-	 * "permanent" means to use the permanent hardware address of the device.
+	 * "permanent" means to use the permanent hardware address if the device
+	 * has one (otherwise this is treated as "preserve").
 	 * "random" creates a random MAC address on each connect.
 	 * "stable" creates a hashed MAC address based on connection.stable-id and a
 	 * machine dependent key.
diff --git a/src/devices/nm-device.c b/src/devices/nm-device.c
index fbf315ed3b..45a71032bd 100644
--- a/src/devices/nm-device.c
+++ b/src/devices/nm-device.c
@@ -13475,8 +13475,17 @@ _hw_addr_get_cloned (NMDevice *self, NMConnection *connection, gboolean is_wifi,
 	}
 
 	if (nm_streq (addr, NM_CLONED_MAC_PERMANENT)) {
-		addr = nm_device_get_permanent_hw_address (self);
-		if (!addr) {
+		gboolean is_fake;
+
+		addr = nm_device_get_permanent_hw_address_full (self, TRUE, &is_fake);
+		if (is_fake) {
+			/* Preserve the current address if the permanent address if fake */
+			NM_SET_OUT (preserve, TRUE);
+			NM_SET_OUT (hwaddr, NULL);
+			NM_SET_OUT (hwaddr_type, HW_ADDR_TYPE_UNSET);
+			NM_SET_OUT (hwaddr_detail, g_steal_pointer (&addr_setting_free) ?: g_strdup (addr_setting));
+			return TRUE;
+		} else if (!addr) {
 			g_set_error_literal (error,
 			                     NM_DEVICE_ERROR,
 			                     NM_DEVICE_ERROR_FAILED,