diff --git a/lib/util/settings.js b/lib/util/settings.js
index b19abd7a..fcf4b2ab 100644
--- a/lib/util/settings.js
+++ b/lib/util/settings.js
@@ -218,6 +218,11 @@ function validate() {
         errors.push(`advanced.network_key: should be array or 'GENERATE' (is '${_settings.advanced.network_key}')`);
     }
 
+    if (_settings.advanced && _settings.advanced.pan_id && typeof _settings.advanced.pan_id === 'string' &&
+        _settings.advanced.pan_id !== 'GENERATE') {
+        errors.push(`advanced.pan_id: should be number or 'GENERATE' (is '${_settings.advanced.pan_id}')`);
+    }
+
     // Verify that all friendly names are unique
     const names = [];
     const check = (name) => {
diff --git a/lib/util/settings.schema.json b/lib/util/settings.schema.json
index a0489aec..dc284bae 100644
--- a/lib/util/settings.schema.json
+++ b/lib/util/settings.schema.json
@@ -190,7 +190,15 @@
           "default": true
         },
         "pan_id": {
-          "type": "number",
+          "oneOf": [{
+              "type": "string",
+              "title": "Pan ID (string)"
+            },
+            {
+              "type": "number",
+              "title": "Pan ID (number)"
+            }
+          ],
           "title": "Pan ID",
           "description": "ZigBee pan ID"
         },
diff --git a/lib/zigbee.js b/lib/zigbee.js
index ab892460..7b6ead0f 100644
--- a/lib/zigbee.js
+++ b/lib/zigbee.js
@@ -53,6 +53,12 @@ class Zigbee extends events.EventEmitter {
             herdsmanSettings.network.networkKey = newKey;
         }
 
+        if (herdsmanSettings.network.panID === 'GENERATE') {
+            const newPanID = Math.floor(Math.random() * (0xFFFF - 2)) + 1;
+            settings.set(['advanced', 'pan_id'], newPanID);
+            herdsmanSettings.network.panID = newPanID;
+        }
+
         try {
             herdsmanSettings.acceptJoiningDeviceHandler = this.acceptJoiningDeviceHandler;
             this.herdsman = new ZigbeeHerdsman.Controller(herdsmanSettings);
diff --git a/test/controller.test.js b/test/controller.test.js
index dec20b76..cf9eab71 100644
--- a/test/controller.test.js
+++ b/test/controller.test.js
@@ -93,12 +93,15 @@ describe('Controller', () => {
         expect(MQTT.connect).toHaveBeenCalledWith("mqtt://localhost", expected);
     });
 
-    it('Should generate network_key when set to GENERATE', async () => {
+    it('Should generate network_key and pan_id when set to GENERATE', async () => {
         settings.set(['advanced', 'network_key'], 'GENERATE');
+        settings.set(['advanced', 'pan_id'], 'GENERATE');
         await controller.start();
         await flushPromises();
         expect(zigbeeHerdsman.constructor.mock.calls[0][0].network.networkKey.length).toStrictEqual(16);
+        expect(zigbeeHerdsman.constructor.mock.calls[0][0].network.panID).toStrictEqual(expect.any(Number));
         expect(data.read().advanced.network_key.length).toStrictEqual(16);
+        expect(data.read().advanced.pan_id).toStrictEqual(expect.any(Number));
     });
 
     it('Start controller should publish cached states', async () => {
diff --git a/test/settings.test.js b/test/settings.test.js
index 04e58461..4bafd221 100644
--- a/test/settings.test.js
+++ b/test/settings.test.js
@@ -622,6 +622,18 @@ describe('Settings', () => {
         expect(settings.validate()).toEqual(expect.arrayContaining([error]));
     });
 
+    it('Should not allow any string values for pan_id', () => {
+        write(configurationFile, {
+            ...minimalConfig,
+            advanced: {pan_id: 'NOT_GENERATE'},
+        });
+
+        settings._reRead();
+
+        const error = `advanced.pan_id: should be number or 'GENERATE' (is 'NOT_GENERATE')`;
+        expect(settings.validate()).toEqual(expect.arrayContaining([error]));
+    });
+
     it('Should allow retention configuration with MQTT v5', () => {
         write(configurationFile, {
             ...minimalConfig,