PS5 network settings sit behind two menus most players never touch after the initial setup. That's a shame, because a few targeted changes can meaningfully improve online performance: lower ping in competitive matches, faster background downloads, and fewer dropped party sessions. The defaults work well enough for casual play, but they're not optimised for every home network or internet plan.
Understanding the two network setup paths
The PS5 offers two ways to connect: Wi-Fi and a wired LAN connection via the console's built-in gigabit Ethernet port. Wired is always preferable for online gaming. A direct cable connection removes the interference, congestion, and signal loss that affect even strong Wi-Fi signals. If running a cable isn't practical, the PS5's Wi-Fi 6 support (on revised hardware) helps, but it still can't match a stable wired link for consistent latency.
Inside Settings > Network > Settings, the PS5 separates "Set Up Internet Connection" from the broader network configuration options. The setup wizard handles your SSID, password, and IP configuration. The other options control how the PS5 behaves once it's connected.
IP address settings: DHCP or manual?
Most routers assign IP addresses automatically via DHCP. That works fine in most homes. The case for setting a manual (static) IP is narrow but real: if you're configuring port forwarding on your router to improve NAT type, a static IP stops the router from reassigning addresses and breaking your forwarding rules overnight.
To set a manual IP, note your current IP address (visible under Network > Connection Status), then re-enter setup and choose "Manual" for IP address settings. Keep the IP outside your router's DHCP range to avoid conflicts. Your subnet mask is typically 255.255.255.0, and the default gateway is your router's IP address, usually 192.168.0.1 or 192.168.1.1.
DNS settings and why they matter
The PS5 defaults to your ISP's DNS servers. Switching to a faster third-party DNS can reduce the time it takes to resolve server addresses, which shows up as slightly snappier menu loading and, in some cases, faster matchmaking connections. It doesn't reduce in-game ping to game servers, but it removes one small source of delay.
Two widely used alternatives are Google's DNS (primary 8.8.8.8, secondary 8.8.4.4) and Cloudflare's 1.1.1.1, which consistently benchmarks as one of the fastest public DNS services globally. Enter these under "DNS Settings" when running the manual network setup. The difference is subtle on most Australian connections, but it costs nothing to set.
MTU: the setting most players ignore
MTU (Maximum Transmission Unit) controls the size of data packets sent over your network. The PS5 defaults to 1500, which is the standard Ethernet MTU. In most cases, leave it there. The one exception is if you're connecting through a VPN or a network with PPPoE (common on some NBN connection types), where the effective MTU is lower. Mismatched MTU causes fragmentation, which adds latency and can cause erratic packet loss.
If you're on an NBN connection using PPPoE, try setting MTU to 1492. If you're unsure what your connection type is, check your router's WAN settings or contact your ISP.
Proxy server: leave it off
The PS5 includes a proxy server option. For the overwhelming majority of players, this should be set to "Do Not Use." A proxy routes your traffic through an intermediary server, adding latency. The only legitimate reason to configure one is if your network administrator requires it, such as in a school or corporate environment. It's not a performance optimisation.
NAT type and what to do about it
NAT type is visible under Network > Connection Status. The PS5 reports three types: Type 1 (open, direct connection to the internet), Type 2 (connected through a router, most home setups), and Type 3 (strict, typically blocked by a firewall or double NAT). Most players on Type 2 won't notice any problems. Type 3 causes real issues: it can block party invites, prevent voice chat from connecting, and stop you joining certain online sessions.
Fixing Type 3 usually means enabling UPnP on your router, which lets the PS5 open the ports it needs automatically. If UPnP doesn't resolve it, manual port forwarding for PlayStation Network ports (TCP 80, 443, 3478, 3479, 3480 and UDP 3478, 3479) is the next step. This is where a static IP becomes necessary, since the forwarding rules need a fixed destination address. If you've been experiencing the kinds of dropped party chat and voice issues that persist across sessions, NAT Type 3 is often the root cause.
Download while in rest mode
Under Settings > System > Power Saving > Features Available in Rest Mode, you can enable "Stay Connected to the Internet" and "Enable Turning On of PS5 from Network." The first allows background downloads and updates to continue while the console is off. The second lets you wake the console remotely via the PlayStation app.
Enabling rest mode downloads is one of the most practical settings on the console. Games and system updates install overnight, so you're not sitting through a progress bar when you actually want to play. The trade-off is a small idle power draw and, for some players, the rest mode instability issues that have affected certain firmware versions. If your console has been waking itself unexpectedly or corrupting saves, it's worth reading up on what's actually going wrong with PS5 rest mode before enabling this permanently.
Bandwidth allocation between console and other devices
The PS5 has no built-in QoS (Quality of Service) controls. That feature lives in your router. If you share a connection with other household members who stream video or download large files, your online gaming performance can degrade during peak periods. Most modern routers include a QoS setting that lets you prioritise traffic from a specific device's MAC address. The PS5's MAC address is visible under Network > Connection Status. Assign your PS5 high priority there to reduce the impact of competing traffic.
On an NBN 25 or 50 plan, competing traffic matters more than on NBN 100 or higher. If you're on a lower-tier plan and consistently seeing lag spikes during evening hours, router-level QoS is a low-cost fix that doesn't require upgrading your internet plan.
Testing your connection
After making any changes, run the built-in connection test under Network > Connection Status > Test Internet Connection. The PS5 reports download speed, upload speed, and NAT type. The download figure here is the connection speed to PlayStation's test servers, not necessarily your plan maximum. It's a useful baseline check after configuration changes. Run it once before and once after to confirm the settings took effect.
The PS5's network settings reward five minutes of attention. Most players will see the biggest gains from switching to a wired connection, resolving a Type 3 NAT, and enabling rest mode downloads. Everything else is marginal but worth knowing.