diff --git a/net-dns/dnscrypt-proxy/Manifest b/net-dns/dnscrypt-proxy/Manifest
index 7d36ce64505de..2bc53718101b8 100644
--- a/net-dns/dnscrypt-proxy/Manifest
+++ b/net-dns/dnscrypt-proxy/Manifest
@@ -1 +1,2 @@
 DIST dnscrypt-proxy-2.1.15.tar.gz 4058547 BLAKE2B 26e97f051f0daf080292641ae8c3e4e89782db9fd0d61e24ae51e838379fda67769fcab61ee58adb01ab662b9a1c3dc47254e4146e4cff29d3d08963154a0988 SHA512 ab2f9194b7631430805d5556b6174a3b360cc1bc3302e070969f79c11850c4f87e7ba34a889ee466f3c857c3f576b458a5ce37bd75e675c44f16c95202957e4d
+DIST dnscrypt-proxy-2.1.16.tar.gz 3595664 BLAKE2B 8a28995639b2fae1ecfe0eb3b88ce41973f5194f67aabf19b8dc28fbb7e2cf967c7208598f1f5effb22575bf3de96abefc1eb728f653f90ef4d3ea507ecd1a9d SHA512 cc43005cd88afd6d51da4aec994ef262eb944dbdf786cd113cc5f8e75ce4ba30bf4ed498f75d26b5dcc430f197439bdd6738e82ff2444e988f7b9ec367ed30b1
diff --git a/net-dns/dnscrypt-proxy/dnscrypt-proxy-2.1.16.ebuild b/net-dns/dnscrypt-proxy/dnscrypt-proxy-2.1.16.ebuild
new file mode 100644
index 0000000000000..077be0f488fbb
--- /dev/null
+++ b/net-dns/dnscrypt-proxy/dnscrypt-proxy-2.1.16.ebuild
@@ -0,0 +1,103 @@
+# Copyright 1999-2026 Gentoo Authors
+# Distributed under the terms of the GNU General Public License v2
+
+EAPI=8
+
+inherit fcaps go-module prefix systemd
+
+DESCRIPTION="Flexible DNS proxy, with support for encrypted DNS protocols"
+HOMEPAGE="https://github.com/DNSCrypt/dnscrypt-proxy"
+
+if [[ ${PV} == 9999 ]]; then
+	EGIT_REPO_URI="https://github.com/DNSCrypt/dnscrypt-proxy.git"
+	inherit git-r3
+else
+	SRC_URI="https://github.com/DNSCrypt/dnscrypt-proxy/archive/${PV}.tar.gz -> ${P}.tar.gz"
+	KEYWORDS="~amd64 ~arm ~arm64 ~ppc64 ~x86"
+fi
+
+LICENSE="Apache-2.0 BSD ISC MIT MPL-2.0"
+SLOT="0"
+
+RDEPEND="
+	acct-group/dnscrypt-proxy
+	acct-user/dnscrypt-proxy
+"
+DEPEND="${RDEPEND}"
+BDEPEND=">=dev-lang/go-1.25"
+
+FILECAPS=( cap_net_bind_service+ep usr/bin/dnscrypt-proxy )
+
+PATCHES=(
+	"${FILESDIR}"/${PN}-2.1.16-config-full-paths.patch
+)
+
+src_compile() {
+	pushd "${PN}" >/dev/null || die
+	ego build -v -x -mod=readonly -mod=vendor
+	popd >/dev/null || die
+}
+
+src_test() {
+	cd "${PN}" || die
+	ego test -mod=vendor
+}
+
+src_install() {
+	pushd "${PN}" >/dev/null || die
+
+	dobin dnscrypt-proxy
+
+	eprefixify example-dnscrypt-proxy.toml
+	insinto /etc/dnscrypt-proxy
+	newins example-dnscrypt-proxy.toml dnscrypt-proxy.toml
+	doins example-{allowed,blocked}-{ips.txt,names.txt}
+	doins example-{cloaking-rules.txt,forwarding-rules.txt}
+
+	popd >/dev/null || die
+
+	insinto /usr/share/dnscrypt-proxy
+	doins -r "utils/generate-domains-blocklist/."
+
+	newinitd "${FILESDIR}"/dnscrypt-proxy.initd dnscrypt-proxy
+	newconfd "${FILESDIR}"/dnscrypt-proxy.confd dnscrypt-proxy
+
+	systemd_newunit "${FILESDIR}"/dnscrypt-proxy.service dnscrypt-proxy.service
+	systemd_newunit "${FILESDIR}"/dnscrypt-proxy.socket dnscrypt-proxy.socket
+
+	insinto /etc/logrotate.d
+	newins "${FILESDIR}"/dnscrypt-proxy.logrotate dnscrypt-proxy
+
+	einstalldocs
+}
+
+pkg_postinst() {
+	fcaps_pkg_postinst
+
+	if ! use filecaps; then
+		ewarn "'filecaps' USE flag is disabled"
+		ewarn "${PN} will fail to listen on port 53"
+		ewarn "please do one the following:"
+		ewarn "1) re-enable 'filecaps'"
+		ewarn "2) change port to > 1024"
+		ewarn "3) configure to run ${PN} as root (not recommended)"
+		ewarn
+	fi
+
+	if systemd_is_booted || has_version sys-apps/systemd; then
+		elog "Using systemd socket activation may cause issues with speed"
+		elog "latency and reliability of ${PN} and is discouraged by upstream"
+		elog "Existing installations advised to disable 'dnscrypt-proxy.socket'"
+		elog "It is disabled by default for new installations"
+		elog "check "$(systemd_get_systemunitdir)/${PN}.service" for details"
+		elog
+	fi
+
+	elog "After starting the service you will need to update your"
+	elog "${EROOT}/etc/resolv.conf and replace your current set of resolvers"
+	elog "with:"
+	elog
+	elog "nameserver 127.0.0.1"
+	elog
+	elog "Also see https://github.com/DNSCrypt/${PN}/wiki"
+}
diff --git a/net-dns/dnscrypt-proxy/dnscrypt-proxy-9999.ebuild b/net-dns/dnscrypt-proxy/dnscrypt-proxy-9999.ebuild
index 86f9e1eadf370..077be0f488fbb 100644
--- a/net-dns/dnscrypt-proxy/dnscrypt-proxy-9999.ebuild
+++ b/net-dns/dnscrypt-proxy/dnscrypt-proxy-9999.ebuild
@@ -1,4 +1,4 @@
-# Copyright 1999-2025 Gentoo Authors
+# Copyright 1999-2026 Gentoo Authors
 # Distributed under the terms of the GNU General Public License v2
 
 EAPI=8
@@ -23,11 +23,13 @@ RDEPEND="
 	acct-group/dnscrypt-proxy
 	acct-user/dnscrypt-proxy
 "
+DEPEND="${RDEPEND}"
+BDEPEND=">=dev-lang/go-1.25"
 
 FILECAPS=( cap_net_bind_service+ep usr/bin/dnscrypt-proxy )
 
 PATCHES=(
-	"${FILESDIR}"/${PN}-2.1.11-config-full-paths.patch
+	"${FILESDIR}"/${PN}-2.1.16-config-full-paths.patch
 )
 
 src_compile() {
@@ -89,7 +91,6 @@ pkg_postinst() {
 		elog "It is disabled by default for new installations"
 		elog "check "$(systemd_get_systemunitdir)/${PN}.service" for details"
 		elog
-
 	fi
 
 	elog "After starting the service you will need to update your"
diff --git a/net-dns/dnscrypt-proxy/files/dnscrypt-proxy-2.1.16-config-full-paths.patch b/net-dns/dnscrypt-proxy/files/dnscrypt-proxy-2.1.16-config-full-paths.patch
new file mode 100644
index 0000000000000..4f64e9d12d940
--- /dev/null
+++ b/net-dns/dnscrypt-proxy/files/dnscrypt-proxy-2.1.16-config-full-paths.patch
@@ -0,0 +1,101 @@
+--- a/dnscrypt-proxy/example-dnscrypt-proxy.toml
++++ b/dnscrypt-proxy/example-dnscrypt-proxy.toml
+@@ -437,7 +437,7 @@ reject_ttl = 10
+ 
+ ## See the `example-forwarding-rules.txt` file for an example
+ 
+-# forwarding_rules = 'forwarding-rules.txt'
++# forwarding_rules = '@GENTOO_PORTAGE_EPREFIX@/etc/dnscrypt-proxy/forwarding-rules.txt'
+ 
+ 
+ ###############################################################################
+@@ -452,7 +452,7 @@ reject_ttl = 10
+ ##
+ ## See the `example-cloaking-rules.txt` file for an example
+ 
+-# cloaking_rules = 'cloaking-rules.txt'
++# cloaking_rules = '@GENTOO_PORTAGE_EPREFIX@/etc/dnscrypt-proxy/cloaking-rules.txt'
+ 
+ ## TTL used when serving entries in cloaking-rules.txt
+ 
+@@ -504,7 +504,7 @@ cache_neg_max_ttl = 600
+ ## check for connectivity and captive portals, along with hard-coded
+ ## IP addresses to return.
+ 
+-# map_file = 'example-captive-portals.txt'
++# map_file = '@GENTOO_PORTAGE_EPREFIX@/etc/dnscrypt-proxy/example-captive-portals.txt'
+ 
+ 
+ ###############################################################################
+@@ -535,8 +535,8 @@ cache_neg_max_ttl = 600
+ ## openssl req -x509 -nodes -newkey rsa:2048 -days 5000 -sha256 -keyout localhost.pem -out localhost.pem
+ ## See the documentation (wiki) for more information.
+ 
+-# cert_file = 'localhost.pem'
+-# cert_key_file = 'localhost.pem'
++# cert_file = '@GENTOO_PORTAGE_EPREFIX@/etc/dnscrypt-proxy/localhost.pem'
++# cert_key_file = '@GENTOO_PORTAGE_EPREFIX@/etc/dnscrypt-proxy/localhost.pem'
+ 
+ 
+ ###############################################################################
+@@ -771,7 +771,7 @@ urls = [
+   'https://download.dnscrypt.info/resolvers-list/v3/public-resolvers.md',
+   'https://cdn.jsdelivr.net/gh/DNSCrypt/dnscrypt-resolvers@master/v3/public-resolvers.md'
+ ]
+-cache_file = 'public-resolvers.md'
++cache_file = '@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/public-resolvers.md'
+ minisign_key = 'RWQf6LRCGA9i53mlYecO4IzT51TGPpvWucNSCh1CBM0QTaLn73Y7GFO3'
+ refresh_delay = 73
+ prefix = ''
+@@ -784,7 +784,7 @@ urls = [
+   'https://download.dnscrypt.info/resolvers-list/v3/relays.md',
+   'https://cdn.jsdelivr.net/gh/DNSCrypt/dnscrypt-resolvers@master/v3/relays.md'
+ ]
+-cache_file = 'relays.md'
++cache_file = '@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/relays.md'
+ minisign_key = 'RWQf6LRCGA9i53mlYecO4IzT51TGPpvWucNSCh1CBM0QTaLn73Y7GFO3'
+ refresh_delay = 73
+ prefix = ''
+@@ -793,13 +793,13 @@ prefix = ''
+ 
+ # [sources.odoh-servers]
+ #   urls = ['https://raw.githubusercontent.com/DNSCrypt/dnscrypt-resolvers/master/v3/odoh-servers.md', 'https://download.dnscrypt.info/resolvers-list/v3/odoh-servers.md', 'https://cdn.jsdelivr.net/gh/DNSCrypt/dnscrypt-resolvers@master/v3/odoh-servers.md']
+-#   cache_file = 'odoh-servers.md'
++#   cache_file = '@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/odoh-servers.md'
+ #   minisign_key = 'RWQf6LRCGA9i53mlYecO4IzT51TGPpvWucNSCh1CBM0QTaLn73Y7GFO3'
+ #   refresh_delay = 73
+ #   prefix = ''
+ # [sources.odoh-relays]
+ #   urls = ['https://raw.githubusercontent.com/DNSCrypt/dnscrypt-resolvers/master/v3/odoh-relays.md', 'https://download.dnscrypt.info/resolvers-list/v3/odoh-relays.md', 'https://cdn.jsdelivr.net/gh/DNSCrypt/dnscrypt-resolvers@master/v3/odoh-relays.md']
+-#   cache_file = 'odoh-relays.md'
++#   cache_file = '@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/odoh-relays.md'
+ #   minisign_key = 'RWQf6LRCGA9i53mlYecO4IzT51TGPpvWucNSCh1CBM0QTaLn73Y7GFO3'
+ #   refresh_delay = 73
+ #   prefix = ''
+@@ -809,7 +809,7 @@ prefix = ''
+ # [sources.quad9-resolvers]
+ #   urls = ['https://quad9.net/dnscrypt/quad9-resolvers.md']
+ #   minisign_key = 'RWQBphd2+f6eiAqBsvDZEBXBGHQBJfeG6G+wJPPKxCZMoEQYpmoysKUN'
+-#   cache_file = 'quad9-resolvers.md'
++#   cache_file = '@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/quad9-resolvers.md'
+ #   prefix = 'quad9-'
+ 
+ ### Another example source, with resolvers censoring some websites not appropriate for children
+@@ -817,7 +817,7 @@ prefix = ''
+ 
+ # [sources.parental-control]
+ #   urls = ['https://raw.githubusercontent.com/DNSCrypt/dnscrypt-resolvers/master/v3/parental-control.md', 'https://download.dnscrypt.info/resolvers-list/v3/parental-control.md', 'https://cdn.jsdelivr.net/gh/DNSCrypt/dnscrypt-resolvers@master/v3/parental-control.md']
+-#   cache_file = 'parental-control.md'
++#   cache_file = '@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/parental-control.md'
+ #   minisign_key = 'RWQf6LRCGA9i53mlYecO4IzT51TGPpvWucNSCh1CBM0QTaLn73Y7GFO3'
+ 
+ ### dnscry.pt servers - See https://www.dnscry.pt
+@@ -825,7 +825,7 @@ prefix = ''
+ #  [sources.dnscry-pt-resolvers]
+ #    urls = ["https://www.dnscry.pt/resolvers.md"]
+ #    minisign_key = "RWQM31Nwkqh01x88SvrBL8djp1NH56Rb4mKLHz16K7qsXgEomnDv6ziQ"
+-#    cache_file = "dnscry.pt-resolvers.md"
++#    cache_file = "@GENTOO_PORTAGE_EPREFIX@/var/cache/dnscrypt-proxy/dnscry.pt-resolvers.md"
+ #    refresh_delay = 73
+ #    prefix = "dnscry.pt-"
+