Why does nslookup/dig/host not resolve hostnames mentioned in /etc/hosts file in Red Hat Enterprise Linux ?

Solution Verified - Updated -

Issue

  • nslookup or dig or host does not resolve hostnames mentioned in /etc/hosts file
  • Performing a DNS lookup of a system in /etc/hosts fails with the following message:
# nslookup server1 
Server:     10.x.x.x
Address:    10.x.x.x#53

** server can't find server1: SERVFAIL

Environment

  • Red Hat Enterprise Linux 4
  • Red Hat Enterprise Linux 5
  • Red Hat Enterprise Linux 6

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