diff --git a/apps/console/internal/app/dns-server.go b/apps/console/internal/app/dns-server.go
index c0eea26e4..6b6257f5d 100644
--- a/apps/console/internal/app/dns-server.go
+++ b/apps/console/internal/app/dns-server.go
@@ -73,11 +73,13 @@ func (h *dnsHandler) resolver(ctx context.Context, domain string, qtype uint16)
 	question := m.Question[0]
 	sp := strings.SplitN(strings.ToLower(question.Name), fmt.Sprintf(".%s", h.kloudliteDNSSuffix), 2)
 	if len(sp) < 2 {
+		h.logger.Debug("INVALID DNS QUERY", "domain", domain, "qtype", qtype)
 		return nil, errInvalidDNSQuery
 	}
 
 	if strings.HasSuffix(sp[0], ".local") {
 		// INFO: domains ending with .local are supposed to be reserved for local machine only
+		h.logger.Debug("LOCAL DOMAIN", "domain", domain, "qtype", qtype)
 		return h.newRR(question.Name, 7*24*60*60, "127.0.0.1")
 	}
 
@@ -87,6 +89,7 @@ func (h *dnsHandler) resolver(ctx context.Context, domain string, qtype uint16)
 
 	sb, err := h.serviceBindingDomain.FindServiceBindingByHostname(ctx, accountName, hostname)
 	if err != nil {
+		h.logger.Debug("failed to find service binding, got", "err", err, "domain", domain, "qtype", qtype)
 		return nil, errors.NewEf(err, "failed to find service binding")
 	}
 
diff --git a/apps/console/internal/domain/service-binding.go b/apps/console/internal/domain/service-binding.go
index e830c8183..62f5a78ae 100644
--- a/apps/console/internal/domain/service-binding.go
+++ b/apps/console/internal/domain/service-binding.go
@@ -32,20 +32,22 @@ func (d *domain) OnServiceBindingUpdateMessage(ctx ConsoleContext, svcb *network
 		return errors.Newf("no service binding found")
 	}
 
-	if svcb.Spec.Hostname == "" {
-		return nil
+	filter := repos.Filter{
+		fc.AccountName:                ctx.AccountName,
+		fc.ServiceBindingSpecHostname: svcb.Spec.Hostname,
 	}
 
-	if svcb.Spec.ServiceIP == nil {
+	if svcb.Spec.ServiceIP == nil || svcb.Spec.Hostname == "" {
+		// INFO: it means that service binding has been de-allocated
+		if err := d.serviceBindingRepo.DeleteOne(ctx, filter); err != nil {
+			if !errors.Is(err, repos.ErrNoDocuments) {
+				return err
+			}
+		}
 		return nil
 	}
 
-	if _, err := d.serviceBindingRepo.Upsert(ctx, repos.Filter{
-		fc.AccountName: ctx.AccountName,
-		// fc.ClusterName: opts.ClusterName,
-		// fc.MetadataName:               svcb.Name,
-		fc.ServiceBindingSpecHostname: svcb.Spec.Hostname,
-	}, &entities.ServiceBinding{
+	if _, err := d.serviceBindingRepo.Upsert(ctx, filter, &entities.ServiceBinding{
 		ServiceBinding: *svcb,
 		AccountName:    ctx.AccountName,
 		ClusterName:    opts.ClusterName,
diff --git a/apps/console/main.go b/apps/console/main.go
index d655ba441..d9af441ee 100644
--- a/apps/console/main.go
+++ b/apps/console/main.go
@@ -5,7 +5,6 @@ import (
 	"flag"
 	"log/slog"
 	"os"
-	"strings"
 	"time"
 
 	"github.com/kloudlite/api/pkg/errors"
@@ -28,7 +27,7 @@ func main() {
 	flag.BoolVar(&debug, "debug", false, "--debug")
 	flag.Parse()
 
-	logger, err := logging.New(&logging.Options{Name: "console", ShowDebugLog: isDev || strings.ToLower(os.Getenv("LOG_LEVEL")) == "debug"})
+	logger, err := logging.New(&logging.Options{Name: "console", ShowDebugLog: debug})
 	if err != nil {
 		panic(err)
 	}