diff --git a/lib/ansible/inventory/ini.py b/lib/ansible/inventory/ini.py
index ddf1ba9534..4b1607d884 100644
--- a/lib/ansible/inventory/ini.py
+++ b/lib/ansible/inventory/ini.py
@@ -67,9 +67,10 @@ class InventoryParser(object):
                 active_group_name = line.replace("[","").replace("]","").strip()
                 if line.find(":vars") != -1 or line.find(":children") != -1:
                     active_group_name = active_group_name.rsplit(":", 1)[0]
-                    self.groups[active_group_name] = Group(name=active_group_name)
+                    if active_group_name not in self.groups:
+                        self.groups[active_group_name] = Group(name=active_group_name)
                     active_group_name = None
-                else:
+                elif active_group_name not in self.groups:
                     new_group = self.groups[active_group_name] = Group(name=active_group_name)
                     all.add_child_group(new_group)
             elif line.startswith("#") or line == '':
diff --git a/test/TestInventory.py b/test/TestInventory.py
index 8985b1ec6b..5c444d9e96 100644
--- a/test/TestInventory.py
+++ b/test/TestInventory.py
@@ -142,7 +142,7 @@ class TestInventory(unittest.TestCase):
         print vars
 
         expected = dict(
-            a='1', b='2', c='3', d='100002', rga='1', rgb='2', rgc='3',
+            a='1', b='2', c='3', d='10002', rga='1', rgb='2', rgc='3',
             inventory_hostname='rtp_a', inventory_hostname_short='rtp_a',
             group_names=[ 'eastcoast', 'nc', 'redundantgroup', 'redundantgroup2', 'redundantgroup3', 'rtp', 'us' ]
         )