diff --git a/lib/ansible/executor/play_iterator.py b/lib/ansible/executor/play_iterator.py
index 329a9f018c..158ed0d9b9 100644
--- a/lib/ansible/executor/play_iterator.py
+++ b/lib/ansible/executor/play_iterator.py
@@ -203,7 +203,9 @@ class PlayIterator:
 
         self._host_states = {}
         start_at_matched = False
-        for host in inventory.get_hosts(self._play.hosts):
+        batch = inventory.get_hosts(self._play.hosts)
+        self.batch_size = len(batch)
+        for host in batch:
             self._host_states[host.name] = HostState(blocks=self._blocks)
             # if we're looking to start at a specific task, iterate through
             # the tasks for this host until we find the specified task
diff --git a/lib/ansible/executor/task_queue_manager.py b/lib/ansible/executor/task_queue_manager.py
index d8f41ccf65..9270d16aab 100644
--- a/lib/ansible/executor/task_queue_manager.py
+++ b/lib/ansible/executor/task_queue_manager.py
@@ -242,22 +242,6 @@ class TaskQueueManager:
             loader=self._loader,
         )
 
-        # Fork # of forks, # of hosts or serial, whichever is lowest
-        num_hosts = len(self._inventory.get_hosts(new_play.hosts, ignore_restrictions=True))
-
-        max_serial = 0
-        if new_play.serial:
-            # the play has not been post_validated here, so we may need
-            # to convert the scalar value to a list at this point
-            serial_items = new_play.serial
-            if not isinstance(serial_items, list):
-                serial_items = [serial_items]
-            max_serial = max([pct_to_int(x, num_hosts) for x in serial_items])
-
-        contenders = [self._options.forks, max_serial, num_hosts]
-        contenders = [v for v in contenders if v is not None and v > 0]
-        self._initialize_processes(min(contenders))
-
         play_context = PlayContext(new_play, self._options, self.passwords, self._connection_lockfile.fileno())
         for callback_plugin in self._callback_plugins:
             if hasattr(callback_plugin, 'set_play_context'):
@@ -268,11 +252,6 @@ class TaskQueueManager:
         # initialize the shared dictionary containing the notified handlers
         self._initialize_notified_handlers(new_play)
 
-        # load the specified strategy (or the default linear one)
-        strategy = strategy_loader.get(new_play.strategy, self)
-        if strategy is None:
-            raise AnsibleError("Invalid play strategy specified: %s" % new_play.strategy, obj=play._ds)
-
         # build the iterator
         iterator = PlayIterator(
             inventory=self._inventory,
@@ -283,6 +262,14 @@ class TaskQueueManager:
             start_at_done=self._start_at_done,
         )
 
+        # adjust to # of workers to configured forks or size of batch, whatever is lower
+        self._initialize_processes(min(self._options.forks, iterator.batch_size))
+
+        # load the specified strategy (or the default linear one)
+        strategy = strategy_loader.get(new_play.strategy, self)
+        if strategy is None:
+            raise AnsibleError("Invalid play strategy specified: %s" % new_play.strategy, obj=play._ds)
+
         # Because the TQM may survive multiple play runs, we start by marking
         # any hosts as failed in the iterator here which may have been marked
         # as failed in previous runs. Then we clear the internal list of failed
diff --git a/lib/ansible/plugins/strategy/linear.py b/lib/ansible/plugins/strategy/linear.py
index 3db70d2c1c..9beba1f283 100644
--- a/lib/ansible/plugins/strategy/linear.py
+++ b/lib/ansible/plugins/strategy/linear.py
@@ -401,7 +401,7 @@ class StrategyModule(StrategyBase):
                 if iterator._play.max_fail_percentage is not None and len(results) > 0:
                     percentage = iterator._play.max_fail_percentage / 100.0
 
-                    if (len(self._tqm._failed_hosts) / len(results)) > percentage:
+                    if (len(self._tqm._failed_hosts) / iterator.batch_size) > percentage:
                         for host in hosts_left:
                             # don't double-mark hosts, or the iterator will potentially
                             # fail them out of the rescue/always states
@@ -410,6 +410,7 @@ class StrategyModule(StrategyBase):
                                 iterator.mark_host_failed(host)
                         self._tqm.send_callback('v2_playbook_on_no_hosts_remaining')
                         result |= self._tqm.RUN_FAILED_BREAK_PLAY
+                    display.debug('(%s failed / %s total )> %s max fail' % (len(self._tqm._failed_hosts), iterator.batch_size, percentage))
                 display.debug("done checking for max_fail_percentage")
 
                 display.debug("checking to see if all hosts have failed and the running result is not ok")