Resolve hostnames over IPsec site-to-site (PFsense box local to Azure VPN)

I have succesfully setup a site-to-site VPN with Azure (PFsense box local).
My local subnet is and the subnet in Azure is

All traffic is functioning as expected bades on IP adress instruction. When is try to resolve HOST names it does not work.

In short i want to resolve host names 2 ways:
1; from azure to local
2; from local to azure.

Can anyone help out with my settings and what i have to setup to make this work?

The system behind pfsense either need the same DNS servers as the system on the Azure side or you will need to create matching DNS entries in pfsense.

Hi Tom,
Thanks for your reply.

What i did at first is replacing my DNS servers in PFsense with the DNS servers i am running in Azure,
so the only 2 DNS servers that where up and running where the azure DNS servers. My local hosts are using the PFsense for DNS. This did not result in any name resolution to Azure.
And backwards: the local network hosts aren’t detected by de Azure DNS servers.

What i have accomplished so far: I activated DNS forwarder (disabled DNS resolver) in PFsense and made a setting to forward all dns requests for the Azure domain to the Azure DNS servers and in Azure DNS i made an conditional forwarder for the local workgroup.
The only thing in this scenario is that i have to give the full FQDN for the host top reach it.
Is this normal behaviour or do you see other options or have i missed something and is my resolution to complex??
Maybe i was missing something in my first configuration and/or your suggestion, but right now this is the only thing that is sort of working right now.