diff --git a/plugins/inventory/digital_ocean.ini b/plugins/inventory/digital_ocean.ini
new file mode 100644
index 0000000000..c4e3fe2141
--- /dev/null
+++ b/plugins/inventory/digital_ocean.ini
@@ -0,0 +1,25 @@
+# Ansible DigitalOcean external inventory script settings
+#
+
+[digital_ocean]
+
+# The module needs your DigitalOcean Client ID and API Key.
+# These may also be specified on the command line via --client-id and --api-key
+# or via the environment variables DO_CLIENT_ID and DO_API_KEY
+#
+#client_id = abcdefg123456
+#api_key = 123456abcdefg
+
+
+# API calls to DigitalOcean may be slow. For this reason, we cache the results
+# of an API call. Set this to the path you want cache files to be written to.
+# One file will be written to this directory:
+#   - ansible-digital_ocean.cache
+#
+cache_path = /tmp
+
+
+# The number of seconds a cache file is considered valid. After this many
+# seconds, a new API call will be made, and the cache file will be updated.
+#
+cache_max_age = 300
diff --git a/plugins/inventory/digital_ocean.py b/plugins/inventory/digital_ocean.py
new file mode 100755
index 0000000000..3aedaf0c10
--- /dev/null
+++ b/plugins/inventory/digital_ocean.py
@@ -0,0 +1,451 @@
+#!/usr/bin/env python
+
+'''
+DigitalOcean external inventory script
+======================================
+
+Generates Ansible inventory of DigitalOcean Droplets.
+
+In addition to the --list and --host options used by Ansible, there are options
+for generating JSON of other DigitalOcean data.  This is useful when creating
+droplets.  For example, --regions will return all the DigitalOcean Regions.
+This information can also be easily found in the cache file, whose default
+location is /tmp/ansible-digital_ocean.cache).
+
+The --pretty (-p) option pretty-prints the output for better human readability.
+
+----
+Configuration is read from `digital_ocean.ini`, then from environment variables,
+then and command-line arguments.
+
+Most notably, the DigitalOcean Client ID and API Key must be specified.  They
+can be specified in the INI file or with the following environment variables:
+    export DO_CLIENT_ID='DO123' DO_API_KEY='abc123'
+
+Alternatively, they can be passed on the command-line with --client-id and
+--api-key.
+
+If you specify DigitalOcean credentials in the INI file, a handy way to
+get them into your environment (e.g., to use the digital_ocean module)
+is to use the output of the --env option with export:
+    export $(digital_ocean.py --env)
+
+----
+The following groups are generated from --list:
+ - ID    (droplet ID)
+ - NAME  (droplet NAME)
+ - image_ID
+ - image_NAME
+ - distro_NAME  (distribution NAME from image)
+ - region_ID
+ - region_NAME
+ - size_ID
+ - size_NAME
+ - status_STATUS
+
+When run against a specific host, this script returns the following variables:
+ - do_created_at
+ - do_distroy
+ - do_id
+ - do_image
+ - do_image_id
+ - do_ip_address
+ - do_name
+ - do_region
+ - do_region_id
+ - do_size
+ - do_size_id
+ - do_status
+
+-----
+```
+usage: digital_ocean.py [-h] [--list] [--host HOST] [--all]
+                                 [--droplets] [--regions] [--images] [--sizes]
+                                 [--ssh-keys] [--domains] [--pretty]
+                                 [--cache-path CACHE_PATH]
+                                 [--cache-max_age CACHE_MAX_AGE]
+                                 [--refresh-cache] [--client-id CLIENT_ID]
+                                 [--api-key API_KEY]
+
+Produce an Ansible Inventory file based on DigitalOcean credentials
+
+optional arguments:
+  -h, --help            show this help message and exit
+  --list                List all active Droplets as Ansible inventory
+                        (default: True)
+  --host HOST           Get all Ansible inventory variables about a specific
+                        Droplet
+  --all                 List all DigitalOcean information as JSON
+  --droplets            List Droplets as JSON
+  --regions             List Regions as JSON
+  --images              List Images as JSON
+  --sizes               List Sizes as JSON
+  --ssh-keys            List SSH keys as JSON
+  --domains             List Domains as JSON
+  --pretty, -p          Pretty-print results
+  --cache-path CACHE_PATH
+                        Path to the cache files (default: .)
+  --cache-max_age CACHE_MAX_AGE
+                        Maximum age of the cached items (default: 0)
+  --refresh-cache       Force refresh of cache by making API requests to
+                        DigitalOcean (default: False - use cache files)
+  --client-id CLIENT_ID, -c CLIENT_ID
+                        DigitalOcean Client ID
+  --api-key API_KEY, -a API_KEY
+                        DigitalOcean API Key
+```
+
+'''
+
+# (c) 2013, Evan Wies <evan@neomantra.net>
+#
+# Inspired by the EC2 inventory plugin:
+# https://github.com/ansible/ansible/blob/devel/plugins/inventory/ec2.py
+#
+# This file is part of Ansible,
+#
+# Ansible is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# Ansible is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with Ansible.  If not, see <http://www.gnu.org/licenses/>.
+
+######################################################################
+
+import os
+import sys
+import re
+import argparse
+from time import time
+import ConfigParser
+
+try:
+    import json
+except ImportError:
+    import simplejson as json
+
+try:
+    from dopy.manager import DoError, DoManager
+except ImportError as e:
+    print "failed=True msg='`dopy` library required for this script'"
+    sys.exit(1)
+
+
+
+class DigitalOceanInventory(object):
+
+    ###########################################################################
+    # Main execution path
+    ###########################################################################
+
+    def __init__(self):
+        ''' Main execution path '''
+
+        # DigitalOceanInventory data
+        self.data = {}      # All DigitalOcean data
+        self.inventory = {} # Ansible Inventory
+        self.index = {}     # Varous indices of Droplet metadata
+
+        # Define defaults
+        self.cache_path = '.'
+        self.cache_max_age = 0
+
+        # Read settings, environment variables, and CLI arguments
+        self.read_settings()
+        self.read_environment()
+        self.read_cli_args()
+
+        # Verify credentials were set
+        if not hasattr(self, 'client_id') or not hasattr(self, 'api_key'):
+            print '''Could not find values for DigitalOcean client_id and api_key.
+They must be specified via either ini file, command line argument (--client-id and --api-key),
+or environment variables (DO_CLIENT_ID and DO_API_KEY)'''
+            sys.exit(-1)
+
+        # env command, show DigitalOcean credentials
+        if self.args.env:
+            print "DO_CLIENT_ID=%s DO_API_KEY=%s" % (self.client_id, self.api_key)
+            sys.exit(0)
+
+        # Manage cache
+        self.cache_filename = self.cache_path + "/ansible-digital_ocean.cache"
+        self.cache_refreshed = False
+
+        if self.args.refresh_cache or not self.is_cache_valid():
+            self.load_all_data_from_digital_ocean()
+        else:
+            self.load_from_cache()
+            if len(self.data) == 0:
+                self.load_all_data_from_digital_ocean()
+
+        # Pick the json_data to print based on the CLI command
+        if self.args.droplets:   json_data = { 'droplets': self.data['droplets'] }
+        elif self.args.regions:  json_data = { 'regions':  self.data['regions'] }
+        elif self.args.images:   json_data = { 'images':   self.data['images'] }
+        elif self.args.sizes:    json_data = { 'sizes':    self.data['sizes'] }
+        elif self.args.ssh_keys: json_data = { 'ssh_keys': self.data['ssh_keys'] }
+        elif self.args.domains:  json_data = { 'domains':  self.data['domains'] }
+        elif self.args.all:      json_data = self.data
+
+        elif self.args.host:    json_data = self.load_droplet_variables_for_host()
+        else:    # '--list' this is last to make it default
+                                json_data = self.inventory
+
+        if self.args.pretty:
+            print json.dumps( json_data, sort_keys=True, indent=2 )
+        else:
+            print json.dumps( json_data )
+        # That's all she wrote...
+
+
+    ###########################################################################
+    # Script configuration
+    ###########################################################################
+
+    def read_settings(self):
+        ''' Reads the settings from the digital_ocean.ini file '''
+        config = ConfigParser.SafeConfigParser()
+        config.read(os.path.dirname(os.path.realpath(__file__)) + '/digital_ocean.ini')
+
+        # Credentials
+        if config.has_option('digital_ocean', 'client_id'):
+            self.client_id = config.get('digital_ocean', 'client_id')
+        if config.has_option('digital_ocean', 'api_key'):
+            self.api_key = config.get('digital_ocean', 'api_key')
+
+        # Cache related
+        if config.has_option('digital_ocean', 'cache_path'):
+            self.cache_path = config.get('digital_ocean', 'cache_path')
+        if config.has_option('digital_ocean', 'cache_max_age'):
+            self.cache_max_age = config.getint('digital_ocean', 'cache_max_age')
+
+
+    def read_environment(self):
+        ''' Reads the settings from environment variables '''
+        # Setup credentials
+        if os.getenv("DO_CLIENT_ID"): self.client_id = os.getenv("DO_CLIENT_ID")
+        if os.getenv("DO_API_KEY"):   self.api_key = os.getenv("DO_API_KEY")
+
+
+    def read_cli_args(self):
+        ''' Command line argument processing '''
+        parser = argparse.ArgumentParser(description='Produce an Ansible Inventory file based on DigitalOcean credentials')
+
+        parser.add_argument('--list', action='store_true', help='List all active Droplets as Ansible inventory (default: True)')
+        parser.add_argument('--host', action='store', help='Get all Ansible inventory variables about a specific Droplet')
+
+        parser.add_argument('--all', action='store_true', help='List all DigitalOcean information as JSON')
+        parser.add_argument('--droplets', action='store_true', help='List Droplets as JSON')
+        parser.add_argument('--regions', action='store_true', help='List Regions as JSON')
+        parser.add_argument('--images', action='store_true', help='List Images as JSON')
+        parser.add_argument('--sizes', action='store_true', help='List Sizes as JSON')
+        parser.add_argument('--ssh-keys', action='store_true', help='List SSH keys as JSON')
+        parser.add_argument('--domains', action='store_true',help='List Domains as JSON')
+
+        parser.add_argument('--pretty','-p', action='store_true', help='Pretty-print results')
+
+        parser.add_argument('--cache-path', action='store', help='Path to the cache files (default: .)')
+        parser.add_argument('--cache-max_age', action='store', help='Maximum age of the cached items (default: 0)')
+        parser.add_argument('--refresh-cache', action='store_true', default=False, help='Force refresh of cache by making API requests to DigitalOcean (default: False - use cache files)')
+
+        parser.add_argument('--env','-e', action='store_true', help='Display DO_CLIENT_ID and DO_API_KEY')
+        parser.add_argument('--client-id','-c', action='store', help='DigitalOcean Client ID')
+        parser.add_argument('--api-key','-a', action='store', help='DigitalOcean API Key')
+
+        self.args = parser.parse_args()
+
+        if self.args.client_id: self.client_id = self.args.client_id
+        if self.args.api_key: self.api_key = self.args.api_key
+        if self.args.cache_path: self.cache_path = self.args.cache_path
+        if self.args.cache_max_age: self.cache_max_age = self.args.cache_max_age
+
+
+
+    ###########################################################################
+    # Data Management
+    ###########################################################################
+
+    def load_all_data_from_digital_ocean(self):
+        ''' Use dopy to get all the information from DigitalOcean and save data in cache files '''
+        manager  = DoManager( self.client_id, self.api_key )
+
+        self.data = {}
+        self.data['droplets'] = self.sanitize_list( manager.all_active_droplets() )
+        self.data['regions']  = self.sanitize_list( manager.all_regions() )
+        self.data['images']   = self.sanitize_list( manager.all_images() )
+        self.data['sizes']    = self.sanitize_list( manager.sizes() )
+        self.data['ssh_keys'] = self.sanitize_list( manager.all_ssh_keys() )
+        self.data['domains']  = self.sanitize_list( manager.all_domains() )
+
+        self.index = {}
+        self.index['region_to_name']  = self.build_index( self.data['regions'], 'id', 'name' )
+        self.index['size_to_name']    = self.build_index( self.data['sizes'], 'id', 'name' )
+        self.index['image_to_name']   = self.build_index( self.data['images'], 'id', 'name' )
+        self.index['image_to_distro'] = self.build_index( self.data['images'], 'id', 'distribution' )
+        self.index['host_to_droplet'] = self.build_index( self.data['droplets'], 'ip_address', 'id', False )
+
+        self.build_inventory()
+
+        self.write_to_cache()
+
+
+    def build_index(self, source_seq, key_from, key_to, use_slug=True):
+        dest_dict = {}
+        for item in source_seq:
+            name = (use_slug and item.has_key('slug')) and item['slug'] or item[key_to]
+            dest_dict[item[key_from]] = name
+        return dest_dict
+
+
+    def build_inventory(self):
+        '''Build Ansible inventory of droplets'''
+        self.inventory = {}
+
+        # add all droplets by id and name
+        for droplet in self.data['droplets']:
+            dest = droplet['ip_address']
+
+            self.inventory[droplet['id']] = [dest]
+            self.push( self.inventory, droplet['name'], dest )
+            self.push( self.inventory, 'region_'+droplet['region_id'], dest )
+            self.push( self.inventory, 'image_' +droplet['image_id'], dest )
+            self.push( self.inventory, 'size_'  +droplet['size_id'], dest )
+            self.push( self.inventory, 'status_'+droplet['status'], dest )
+
+            region_name = self.index['region_to_name'][droplet['region_id']]
+            self.push( self.inventory, 'region_'+region_name, dest )
+
+            size_name = self.index['size_to_name'][droplet['size_id']]
+            self.push( self.inventory, 'size_'+size_name, dest )
+
+            image_name = self.index['image_to_name'][droplet['image_id']]
+            self.push( self.inventory, 'image_'+image_name, dest )
+
+            distro_name = self.index['image_to_distro'][droplet['image_id']]
+            self.push( self.inventory, 'distro_'+distro_name, dest )
+
+
+    def load_droplet_variables_for_host(self):
+        '''Generate a JSON reponse to a --host call'''
+        host = self.to_safe(str(self.args.host))
+
+        if not host in self.index['host_to_droplet']:
+            # try updating cache
+            self.load_all_data_from_digital_ocean()
+            if not host in self.index['host_to_droplet']:
+                # host might not exist anymore
+                return {}
+
+        droplet = None
+        if self.cache_refreshed:
+            for drop in self.data['droplets']:
+                if drop['ip_address'] == host:
+                    droplet = drop
+                    break
+        else:
+            # Cache wasn't refreshed this run, so hit DigitalOcean API
+            manager = DoManager( self.client_id, self.api_key )
+            droplet_id = self.index['host_to_droplet'][host]
+            droplet = self.sanitize_dict( manager.show_droplet( droplet_id ) )
+       
+        if not droplet:
+            return {}
+
+        # Put all the information in a 'do_' namespace
+        info = {}
+        for k, v in droplet.items():
+            info['do_'+k] = v
+
+        # Generate user-friendly variables (i.e. not the ID's) 
+        if droplet.has_key('region_id'):
+            info['do_region'] = self.index['region_to_name'][droplet['region_id']]
+        if droplet.has_key('size_id'):
+            info['do_size'] = self.index['size_to_name'][droplet['size_id']]
+        if droplet.has_key('image_id'):
+            info['do_image']  = self.index['image_to_name'][droplet['image_id']]
+            info['do_distro'] = self.index['image_to_distro'][droplet['image_id']]
+
+        return info
+
+
+
+    ###########################################################################
+    # Cache Management
+    ###########################################################################
+
+    def is_cache_valid(self):
+        ''' Determines if the cache files have expired, or if it is still valid '''
+        if os.path.isfile(self.cache_filename):
+            mod_time = os.path.getmtime(self.cache_filename)
+            current_time = time()
+            if (mod_time + self.cache_max_age) > current_time:
+                return True
+        return False
+
+
+    def load_from_cache(self):
+        ''' Reads the data from the cache file and assigns it to member variables as Python Objects'''
+        cache = open(self.cache_filename, 'r')
+        json_data = cache.read()
+        cache.close()
+        data = json.loads( json_data )
+
+        self.data = data['data']
+        self.inventory = data['inventory']
+        self.index = data['index']
+
+
+    def write_to_cache(self):
+        ''' Writes data in JSON format to a file '''
+        data = { 'data': self.data, 'index': self.index, 'inventory': self.inventory }
+        json_data = json.dumps( data, sort_keys=True, indent=2 )
+
+        cache = open(self.cache_filename, 'w')
+        cache.write(json_data)
+        cache.close()
+
+
+
+    ###########################################################################
+    # Utilities
+    ###########################################################################
+
+    def push(self, my_dict, key, element):
+        ''' Pushed an element onto an array that may not have been defined in the dict '''
+        if key in my_dict:
+            my_dict[key].append(element);
+        else:
+            my_dict[key] = [element]
+
+
+    def to_safe(self, word):
+        ''' Converts 'bad' characters in a string to underscores so they can be used as Ansible groups '''
+        return re.sub("[^A-Za-z0-9\-\.]", "_", word)
+
+
+    def sanitize_dict(self, d):
+        new_dict = {}
+        for k, v in d.items():
+            if v != None:
+                new_dict[self.to_safe(str(k))] = self.to_safe(str(v))
+        return new_dict
+
+
+    def sanitize_list(self, seq):
+        new_seq = []
+        for d in seq:
+            new_seq.append( self.sanitize_dict(d) )
+        return new_seq
+
+
+
+###########################################################################
+# Run the script
+DigitalOceanInventory()