diff --git a/config/settings.local.yaml.tpl b/config/settings.local.yaml.tpl
index dca4fad7..764f92b2 100644
--- a/config/settings.local.yaml.tpl
+++ b/config/settings.local.yaml.tpl
@@ -52,6 +52,13 @@
 #    issuer:                                       # Issuer object for testing TLSPolicy
 #      name: "selfsigned-cluster-issuer"           # Name of Issuer CR
 #      kind: "ClusterIssuer"                       # Kind of Issuer, can be "Issuer" or "ClusterIssuer"
+#  dns:
+#    dns_server:
+#      geo_code: "DE"                       # dns provider geo code of the dns server
+#      address: "ns1.seolizer.de"           # dns nameserver hostname or ip
+#    dns_server2:
+#      geo_code: "AU"                       # dns provider geo code of the second dns server
+#      address: "ns2.seolizer.de"           # second dns nameserver hostname or ip
 #  letsencrypt:
 #    issuer:                                       # Issuer object for testing TLSPolicy
 #      name: "letsencrypt-staging-issuer"          # Name of Issuer CR
diff --git a/testsuite/config/__init__.py b/testsuite/config/__init__.py
index 6c351c38..9af6945f 100644
--- a/testsuite/config/__init__.py
+++ b/testsuite/config/__init__.py
@@ -2,6 +2,7 @@
 
 from dynaconf import Dynaconf, Validator
 
+from testsuite.utils import hostname_to_ip
 from testsuite.config.tools import fetch_route, fetch_service, fetch_secret, fetch_service_ip
 
 
@@ -59,6 +60,12 @@ def __init__(self, name, default, **kwargs) -> None:
             Validator("letsencrypt.issuer.name", must_exist=True, ne=None)
             & Validator("letsencrypt.issuer.kind", must_exist=True, is_in={"Issuer", "ClusterIssuer"})
         ),
+        (
+            Validator("dns.dns_server.address", must_exist=True, ne=None, cast=hostname_to_ip)
+            & Validator("dns.dns_server.geo_code", must_exist=True, ne=None)
+            & Validator("dns.dns_server2.address", must_exist=True, ne=None, cast=hostname_to_ip)
+            & Validator("dns.dns_server2.geo_code", must_exist=True, ne=None)
+        ),
         DefaultValueValidator("keycloak.url", default=fetch_service_ip("keycloak", force_http=True, port=8080)),
         DefaultValueValidator("keycloak.password", default=fetch_secret("credential-sso", "ADMIN_PASSWORD")),
         DefaultValueValidator("mockserver.url", default=fetch_service_ip("mockserver", force_http=True, port=1080)),
diff --git a/testsuite/kuadrant/policy/dns.py b/testsuite/kuadrant/policy/dns.py
index 481d7d67..eddeff38 100644
--- a/testsuite/kuadrant/policy/dns.py
+++ b/testsuite/kuadrant/policy/dns.py
@@ -1,8 +1,26 @@
 """Module for DNSPolicy related classes"""
 
+from dataclasses import dataclass
+
 from testsuite.gateway import Referencable
 from testsuite.kubernetes.client import KubernetesClient
 from testsuite.kuadrant.policy import Policy
+from testsuite.utils import asdict
+
+
+@dataclass
+class LoadBalancing:
+    """Dataclass for DNSPolicy load-balancing spec"""
+
+    default_geo: str
+    default_weight: int
+
+    def asdict(self):
+        """Custom asdict due to nested structure."""
+        return {
+            "geo": {"defaultGeo": self.default_geo},
+            "weighted": {"defaultWeight": self.default_weight},
+        }
 
 
 class DNSPolicy(Policy):
@@ -15,6 +33,7 @@ def create_instance(
         name: str,
         parent: Referencable,
         provider_secret_name: str,
+        load_balancing: LoadBalancing = None,
         labels: dict[str, str] = None,
     ):
         """Creates new instance of DNSPolicy"""
@@ -30,4 +49,8 @@ def create_instance(
             },
         }
 
+        if load_balancing:
+            model["spec"]["routingStrategy"] = "loadbalanced"
+            model["spec"]["loadBalancing"] = asdict(load_balancing)
+
         return cls(model, context=cluster.context)
diff --git a/testsuite/tests/multicluster/load_balanced/__init__.py b/testsuite/tests/multicluster/load_balanced/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/testsuite/tests/multicluster/load_balanced/conftest.py b/testsuite/tests/multicluster/load_balanced/conftest.py
new file mode 100644
index 00000000..576cb0d0
--- /dev/null
+++ b/testsuite/tests/multicluster/load_balanced/conftest.py
@@ -0,0 +1,38 @@
+"""Conftest for load-balanced multicluster tests"""
+
+import pytest
+
+from testsuite.kuadrant.policy.dns import DNSPolicy, LoadBalancing
+
+
+@pytest.fixture(scope="package")
+def dns_config(testconfig):
+    """Configuration for DNS tests"""
+    testconfig.validators.validate(only="dns")
+    return testconfig["dns"]
+
+
+@pytest.fixture(scope="package")
+def dns_server(dns_config):
+    """DNS server in the first geo region"""
+    return dns_config["dns_server"]
+
+
+@pytest.fixture(scope="package")
+def dns_server2(dns_config):
+    """DNS server in the second geo region"""
+    return dns_config["dns_server2"]
+
+
+@pytest.fixture(scope="module")
+def dns_policy(blame, cluster, gateway, dns_server, module_label):
+    """DNSPolicy with load-balancing for the first cluster"""
+    load_balancing = LoadBalancing(default_geo=dns_server["geo_code"], default_weight=10)
+    return DNSPolicy.create_instance(cluster, blame("dns"), gateway, load_balancing, labels={"app": module_label})
+
+
+@pytest.fixture(scope="module")
+def dns_policy2(blame, cluster2, gateway2, dns_server, module_label):
+    """DNSPolicy with load-balancing for the second cluster"""
+    load_balancing = LoadBalancing(default_geo=dns_server["geo_code"], default_weight=10)
+    return DNSPolicy.create_instance(cluster2, blame("dns"), gateway2, load_balancing, labels={"app": module_label})
diff --git a/testsuite/tests/multicluster/load_balanced/test_load_balanced_geo.py b/testsuite/tests/multicluster/load_balanced/test_load_balanced_geo.py
new file mode 100644
index 00000000..b02615b0
--- /dev/null
+++ b/testsuite/tests/multicluster/load_balanced/test_load_balanced_geo.py
@@ -0,0 +1,32 @@
+"""Test load-balancing based on geolocation"""
+
+import pytest
+import dns.name
+import dns.resolver
+
+pytestmark = [pytest.mark.multicluster]
+
+
+@pytest.fixture(scope="module")
+def gateway2(gateway2, dns_server2):
+    """Overwrite second gateway to have a different geocode"""
+    gateway2.label({"kuadrant.io/lb-attribute-geo-code": dns_server2["geo_code"]})
+    return gateway2
+
+
+def test_load_balanced_geo(client, hostname, gateway, gateway2, dns_server, dns_server2):
+    """
+    - Verify that request to the hostname is successful
+    - Verify that DNS resolution through nameservers from different regions returns according IPs
+    """
+    result = client.get("/get")
+    assert not result.has_dns_error(), result.error
+    assert not result.has_cert_verify_error(), result.error
+    assert result.status_code == 200
+
+    resolver = dns.resolver.Resolver(configure=False)
+    resolver.nameservers = [dns_server["address"]]
+    assert resolver.resolve(hostname.hostname)[0].address == gateway.external_ip().split(":")[0]
+
+    resolver.nameservers = [dns_server2["address"]]
+    assert resolver.resolve(hostname.hostname)[0].address == gateway2.external_ip().split(":")[0]
diff --git a/testsuite/tests/multicluster/load_balanced/test_unsupported_geocode.py b/testsuite/tests/multicluster/load_balanced/test_unsupported_geocode.py
new file mode 100644
index 00000000..c06e16b6
--- /dev/null
+++ b/testsuite/tests/multicluster/load_balanced/test_unsupported_geocode.py
@@ -0,0 +1,15 @@
+"""Test not supported geocode in geo load-balancing"""
+
+import pytest
+
+from testsuite.kuadrant.policy import has_condition
+
+pytestmark = [pytest.mark.multicluster]
+
+
+def test_unsupported_geocode(dns_policy):
+    """Change default geocode to not existent one and verify that policy became not enforced"""
+    dns_policy.model.spec.loadBalancing.geo.defaultGeo = "XX"
+    dns_policy.apply()
+
+    assert dns_policy.wait_until(has_condition("Enforced", "False"))
diff --git a/testsuite/utils.py b/testsuite/utils.py
index 2652a6e9..c5fbf388 100644
--- a/testsuite/utils.py
+++ b/testsuite/utils.py
@@ -180,6 +180,16 @@ def check_condition(condition, condition_type, status, reason=None, message=None
     return False
 
 
+def hostname_to_ip(address: str) -> str:
+    """Resolves hostname to IP if necessary"""
+    if any(c.isalpha() for c in address):
+        try:
+            return dns.resolver.resolve(address)[0].address
+        except dns.resolver.NXDOMAIN as e:
+            raise ValueError(f"Hostname {address} can't be resolved to an IP address") from e
+    return address
+
+
 def is_nxdomain(hostname: str):
     """
     Returns True if hostname has no `A` record in DNS. False otherwise.