diff --git a/src/firewall/core/ipXtables.py b/src/firewall/core/ipXtables.py
index 450e427..b28146e 100644
--- a/src/firewall/core/ipXtables.py
+++ b/src/firewall/core/ipXtables.py
@@ -814,6 +814,10 @@ class ip4tables(object):
         else:
             zone_dispatch_chain = "%s_ZONES" % (chain)
 
+        # iptables can not match destination MAC
+        if check_mac(address) and chain in ["POSTROUTING", "FORWARD_OUT", "OUTPUT"]:
+            return []
+
         target = DEFAULT_ZONE_TARGET.format(chain=SHORTCUTS[chain], zone=zone)
         action = "-g"
 
diff --git a/src/firewall/core/nftables.py b/src/firewall/core/nftables.py
index 0a73c2c..a0a899d 100644
--- a/src/firewall/core/nftables.py
+++ b/src/firewall/core/nftables.py
@@ -1067,8 +1067,6 @@ class nftables(object):
             return self._set_match_fragment(address[len("ipset:"):], True if "daddr" == addr_field else False, invert)
         else:
             if check_mac(address):
-                if addr_field == "daddr":
-                    raise FirewallError(INVALID_RULE, "%s._rule_addr_fragment()", (self.__class__))
                 family = "ether"
             elif check_single_address("ipv4", address):
                 family = "ip"
diff --git a/src/tests/regression/gh703.at b/src/tests/regression/gh703.at
new file mode 100644
index 0000000..af724a7
--- /dev/null
+++ b/src/tests/regression/gh703.at
@@ -0,0 +1,23 @@
+FWD_START_TEST([add source with mac address])
+AT_KEYWORDS(gh703)
+
+FWD_CHECK([--zone=home --add-source=34:7e:5c:3a:4c:32], 0, [ignore])
+
+NFT_LIST_RULES([ip], [nat_POSTROUTING_ZONES_SOURCE], 0, [dnl
+    table ip firewalld {
+        chain nat_POSTROUTING_ZONES_SOURCE {
+            ether daddr 34:7e:5c:3a:4c:32 goto nat_POST_home
+        }          
+    }          
+])
+NFT_LIST_RULES([ip6], [nat_POSTROUTING_ZONES_SOURCE], 0, [dnl
+    table ip6 firewalld {
+        chain nat_POSTROUTING_ZONES_SOURCE {
+            ether daddr 34:7e:5c:3a:4c:32 goto nat_POST_home
+        }          
+    }          
+])
+
+dnl NOTE: iptables does _not_ support matching mac destination.
+
+FWD_END_TEST
diff --git a/src/tests/regression/regression.at b/src/tests/regression/regression.at
index c1e8620..7597a45 100644
--- a/src/tests/regression/regression.at
+++ b/src/tests/regression/regression.at
@@ -36,3 +36,4 @@ m4_include([regression/rhbz1541077.at])
 m4_include([regression/rhbz1855140.at])
 m4_include([regression/rhbz1871298.at])
 m4_include([regression/rhbz1596304.at])
+m4_include([regression/gh703.at])