@Tramii:
@mattbodman:
Ok, so I have a mobile tunnel setup which works great, except that even though the DNS settings issued by the IPSec tunnel are correct, no local hosts will resolve.
I just had this issue yesterday. I set up an IPsec VPN and everything worked fine except DNS resolution. I could ping things by IP but not by name. Pulled my hair out for hours trying to resolve it. Finally, I rebooted the pfSense box out of frustration. That worked. No idea why, but it did. I replicated the issue just to verify. Deleted the VPN setup and recreated it. Had the same DNS issue. Rebooting the router fixed it. Works great now. No idea why, but maybe it will work for you too?
Thanks for posting; I know this is an older thread but this was the answer I needed. Maybe it would have worked to restart the DNS Resolver as well, but rebooting the router fixed this issue for me.