diff --git a/changelogs/fragments/3561-fix-ipa-host-var-detection.yml b/changelogs/fragments/3561-fix-ipa-host-var-detection.yml
new file mode 100644
index 0000000000..4b5f23f174
--- /dev/null
+++ b/changelogs/fragments/3561-fix-ipa-host-var-detection.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - ipa_* modules - fix environment fallback for ``ipa_host`` option (https://github.com/ansible-collections/community.general/issues/3560).
diff --git a/plugins/module_utils/ipa.py b/plugins/module_utils/ipa.py
index b2b1a892cd..0e456d18ea 100644
--- a/plugins/module_utils/ipa.py
+++ b/plugins/module_utils/ipa.py
@@ -31,6 +31,7 @@ def _env_then_dns_fallback(*args, **kwargs):
         result = env_fallback(*args, **kwargs)
         if result == '':
             raise AnsibleFallbackNotFound
+        return result
     except AnsibleFallbackNotFound:
         # If no host was given, we try to guess it from IPA.
         # The ipa-ca entry is a standard entry that IPA will have set for