diff --git a/docs/source/markdown/podman-systemd.unit.5.md b/docs/source/markdown/podman-systemd.unit.5.md
index 8d5b3d0ad8..8b121e9b2d 100644
--- a/docs/source/markdown/podman-systemd.unit.5.md
+++ b/docs/source/markdown/podman-systemd.unit.5.md
@@ -274,6 +274,14 @@ Requires=basic.container
 Image=registry.fedoraproject.org/fedora:41
 ```
 
+### Setting resource names
+
+Quadlet units allow setting the names of the created resources
+(e.g. `VolumeName` for `.volume` units or `PodName` for `.pod` units).
+
+Note that using systemd specifiers that reference the generated service unit (e.g. `$N`)
+breaks Quadlet's ability to link between resources as they are translated differently in each service
+
 ## Container units [Container]
 
 Container units are named with a `.container` extension and contain a `[Container]` section describing
@@ -1138,9 +1146,9 @@ This key can be listed multiple times.
 
 ### `PodName=`
 
-The (optional) name of the Podman pod. If this is not specified, the default value
-of `systemd-%N` is used, which is the same as the service name but with a `systemd-`
-prefix to avoid conflicts with user-managed containers.
+The (optional) name of the Podman pod.
+If this is not specified, the default value is the same name as the unit, but with a `systemd-` prefix,
+i.e. a `$name.pod` file creates a `systemd-$name` Podman pod to avoid conflicts with user-managed pods.
 
 Please note that pods and containers cannot have the same name.
 So, if PodName is set, it must not conflict with any container.
@@ -1488,9 +1496,10 @@ When set to `true` the network is deleted when the service is stopped
 
 ### `NetworkName=`
 
-The (optional) name of the Podman network. If this is not specified, the default value of
-`systemd-%N` is used, which is the same as the unit name but with a `systemd-` prefix to avoid
-conflicts with user-managed networks.
+The (optional) name of the Podman network.
+If this is not specified, the default value is the same name as the unit, but with a `systemd-` prefix,
+i.e. a `$name.network` file creates a `systemd-$name` Podman network to avoid
+conflicts with user-managed network.
 
 ### `Options=`
 
@@ -1639,8 +1648,9 @@ The host (numeric) UID, or user name to use as the owner for the volume
 
 ### `VolumeName=`
 
-The (optional) name of the Podman volume. If this is not specified, the default value of
-`systemd-%N` is used, which is the same as the unit name but with a `systemd-` prefix to avoid
+The (optional) name of the Podman volume.
+If this is not specified, the default value is the same name as the unit, but with a `systemd-` prefix,
+i.e. a `$name.volume` file creates a `systemd-$name` Podman volume to avoid
 conflicts with user-managed volumes.
 
 ## Build units [Build]
diff --git a/pkg/systemd/quadlet/quadlet.go b/pkg/systemd/quadlet/quadlet.go
index 537986b8a4..5856e1b3eb 100644
--- a/pkg/systemd/quadlet/quadlet.go
+++ b/pkg/systemd/quadlet/quadlet.go
@@ -1482,7 +1482,7 @@ func GetPodResourceName(podUnit *parser.UnitFile) string {
 	// Derive pod name from unit name (with added prefix), or use user-provided name.
 	podName, ok := podUnit.Lookup(PodGroup, KeyPodName)
 	if !ok || len(podName) == 0 {
-		podName = "systemd-%N"
+		podName = removeExtension(podUnit.Filename, "systemd-", "")
 	}
 	return podName
 }
diff --git a/test/e2e/quadlet/basic.pod b/test/e2e/quadlet/basic.pod
index 29ce391162..6e482e1940 100644
--- a/test/e2e/quadlet/basic.pod
+++ b/test/e2e/quadlet/basic.pod
@@ -1,9 +1,9 @@
 ## assert-key-is Unit RequiresMountsFor "%t/containers"
 ## assert-key-is Service Type forking
 ## assert-key-is Service SyslogIdentifier "%N"
-## assert-key-is-regex Service ExecStartPre ".*/podman pod create --infra-conmon-pidfile=%t/%N.pid --exit-policy=stop --replace --infra-name systemd-%N-infra --name systemd-%N"
-## assert-key-is-regex Service ExecStart ".*/podman pod start systemd-%N"
-## assert-key-is-regex Service ExecStop ".*/podman pod stop --ignore --time=10 systemd-%N"
-## assert-key-is-regex Service ExecStopPost ".*/podman pod rm --ignore --force systemd-%N"
+## assert-key-is-regex Service ExecStartPre ".*/podman pod create --infra-conmon-pidfile=%t/%N.pid --exit-policy=stop --replace --infra-name systemd-basic-infra --name systemd-basic"
+## assert-key-is-regex Service ExecStart ".*/podman pod start systemd-basic"
+## assert-key-is-regex Service ExecStop ".*/podman pod stop --ignore --time=10 systemd-basic"
+## assert-key-is-regex Service ExecStopPost ".*/podman pod rm --ignore --force systemd-basic"
 
 [Pod]