diff --git a/.gitignore b/.gitignore
index 46bf661d..4e4dc035 100644
--- a/.gitignore
+++ b/.gitignore
@@ -21,7 +21,6 @@
 /snapcraft_login
 AdGuardHome*
 coverage.txt
-leases.db
 leases.json
 node_modules/
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index af03a8e4..8d0d4813 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -55,6 +55,8 @@ NOTE: Add new changes BELOW THIS COMMENT.
 
 ### Changed
 
+- Stored DHCP leases moved from `leases.db` to `data/leases.json` and now have
+  human-readable format.
 - ARPA domain names containing a subnet within private networks now also
   considered private, behaving closer to [RFC 6761][rfc6761] ([#5567]).
 
diff --git a/internal/dhcpd/db.go b/internal/dhcpd/db.go
index 2ef6ac71..348c6c8f 100644
--- a/internal/dhcpd/db.go
+++ b/internal/dhcpd/db.go
@@ -23,7 +23,9 @@ const (
 	dataFilename = "leases.json"
 )
 
-// Deprecated:  Use Lease.
+// leaseJSON is the structure of stored lease.
+//
+// Deprecated:  Use [Lease].
 type leaseJSON struct {
 	HWAddr   []byte `json:"mac"`
 	IP       []byte `json:"ip"`
@@ -39,9 +41,7 @@ func normalizeIP(ip net.IP) net.IP {
 	return ip
 }
 
-// Load lease table from DB
-//
-// TODO(s.chzhen):  Decrease complexity.
+// dbLoad loads stored leases.
 func (s *server) dbLoad() (err error) {
 	data, err := os.ReadFile(s.conf.DBFilePath)
 	if err != nil {
@@ -114,7 +114,7 @@ func normalizeLeases(staticLeases, dynLeases []*Lease) []*Lease {
 	return leases
 }
 
-// Store lease table in DB
+// dbStore stores DHCP leases.
 func (s *server) dbStore() (err error) {
 	// Use an empty slice here as opposed to nil so that it doesn't write
 	// "null" into the database file if leases are empty.
@@ -131,6 +131,7 @@ func (s *server) dbStore() (err error) {
 	return writeDB(s.conf.DBFilePath, leases)
 }
 
+// writeDB writes leases to file at path.
 func writeDB(path string, leases []*Lease) (err error) {
 	defer func() { err = errors.Annotate(err, "writing db: %w") }()
 
@@ -156,34 +157,24 @@ func writeDB(path string, leases []*Lease) (err error) {
 	return nil
 }
 
-func checkDB(conf *ServerConfig) (err error) {
-	workDirPath := filepath.Join(conf.WorkDir, dbFilename)
-	_, err = os.Stat(workDirPath)
+// migrateDB migrates stored leases if necessary.
+func migrateDB(conf *ServerConfig) (err error) {
+	defer func() { err = errors.Annotate(err, "migrating db: %w") }()
 
+	oldLeasesPath := filepath.Join(conf.WorkDir, dbFilename)
+	dataDirPath := filepath.Join(conf.DataDir, dataFilename)
+
+	file, err := os.Open(oldLeasesPath)
 	if errors.Is(err, os.ErrNotExist) {
 		// Nothing to migrate.
 		return nil
-	} else if err == nil {
-		dataDirPath := filepath.Join(conf.DataDir, dataFilename)
-
-		err = migrateDB(workDirPath, dataDirPath)
-	}
-
-	return errors.Annotate(err, "checking db: %w")
-}
-
-func migrateDB(workDirPath, dataDirPath string) (err error) {
-	defer func() { err = errors.Annotate(err, "migrating db: %w") }()
-
-	var data []byte
-	data, err = os.ReadFile(workDirPath)
-	if err != nil {
+	} else if err != nil {
 		// Don't wrap the error since it's informative enough as is.
 		return err
 	}
 
 	ljs := []leaseJSON{}
-	err = json.Unmarshal(data, &ljs)
+	err = json.NewDecoder(file).Decode(&ljs)
 	if err != nil {
 		// Don't wrap the error since it's informative enough as is.
 		return err
@@ -213,6 +204,10 @@ func migrateDB(workDirPath, dataDirPath string) (err error) {
 	}
 
 	err = writeDB(dataDirPath, leases)
+	if err != nil {
+		// Don't wrap the error since it's informative enough as is.
+		return err
+	}
 
-	return os.Remove(workDirPath)
+	return os.Remove(oldLeasesPath)
 }
diff --git a/internal/dhcpd/db_internal_test.go b/internal/dhcpd/db_internal_test.go
index f0afbc08..c904b587 100644
--- a/internal/dhcpd/db_internal_test.go
+++ b/internal/dhcpd/db_internal_test.go
@@ -13,18 +13,18 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
-const testLeasesDB = `[
+const testData = `[
 {"mac":"ESIzRFVm","ip":"AQIDBA==","host":"test1","exp":1},
 {"mac":"ZlVEMyIR","ip":"BAMCAQ==","host":"test2","exp":1231231231}
 ]`
 
-func Test_upgradeDB(t *testing.T) {
+func Test_migrateDB(t *testing.T) {
 	dir := t.TempDir()
 
-	workDirPath := filepath.Join(dir, dbFilename)
+	oldLeasesPath := filepath.Join(dir, dbFilename)
 	dataDirPath := filepath.Join(dir, dataFilename)
 
-	err := os.WriteFile(workDirPath, []byte(testLeasesDB), 0o644)
+	err := os.WriteFile(oldLeasesPath, []byte(testData), 0o644)
 	require.NoError(t, err)
 
 	wantLeases := []*Lease{{
@@ -41,7 +41,12 @@ func Test_upgradeDB(t *testing.T) {
 		IsStatic: false,
 	}}
 
-	err = migrateDB(workDirPath, dataDirPath)
+	conf := &ServerConfig{
+		WorkDir: dir,
+		DataDir: dir,
+	}
+
+	err = migrateDB(conf)
 	require.NoError(t, err)
 
 	var data []byte
diff --git a/internal/dhcpd/dhcpd.go b/internal/dhcpd/dhcpd.go
index 77147880..cb32988c 100644
--- a/internal/dhcpd/dhcpd.go
+++ b/internal/dhcpd/dhcpd.go
@@ -279,8 +279,8 @@ func Create(conf *ServerConfig) (s *server, err error) {
 		return nil, fmt.Errorf("neither dhcpv4 nor dhcpv6 srv is configured")
 	}
 
-	// Check if leases db needs to be migrated.
-	err = checkDB(conf)
+	// Migrate leases db if needed.
+	err = migrateDB(conf)
 	if err != nil {
 		return nil, err
 	}
diff --git a/internal/dhcpd/dhcpd_unix_test.go b/internal/dhcpd/dhcpd_unix_test.go
index a2efabbd..4b8fda19 100644
--- a/internal/dhcpd/dhcpd_unix_test.go
+++ b/internal/dhcpd/dhcpd_unix_test.go
@@ -53,7 +53,6 @@ func TestDB(t *testing.T) {
 		Hostname: "static-2.local",
 		HWAddr:   net.HardwareAddr{0xAA, 0xAA, 0xAA, 0xAA, 0xAA, 0xBB},
 		IP:       netip.MustParseAddr("192.168.10.101"),
-		IsStatic: true,
 	}}
 
 	srv4, ok := s.srv4.(*v4Server)
diff --git a/internal/dhcpd/http_unix_test.go b/internal/dhcpd/http_unix_test.go
index f1ffc70d..f66a2a2b 100644
--- a/internal/dhcpd/http_unix_test.go
+++ b/internal/dhcpd/http_unix_test.go
@@ -33,7 +33,6 @@ func TestServer_handleDHCPStatus(t *testing.T) {
 		Conf4:          *defaultV4ServerConf(),
 		DataDir:        t.TempDir(),
 		WorkDir:        t.TempDir(),
-		DBFilePath:     dbFilename,
 		ConfigModified: func() {},
 	})
 	require.NoError(t, err)