diff --git a/lib/ansible/utils/plugins.py b/lib/ansible/utils/plugins.py
index c36e5434ae..e9d2c605bd 100644
--- a/lib/ansible/utils/plugins.py
+++ b/lib/ansible/utils/plugins.py
@@ -100,11 +100,10 @@ class PluginLoader(object):
                 files = glob.glob("%s/*" % fullpath)
                 for file in files:
                     if os.path.isdir(file) and file not in ret:
-                        ret.append(file)    
-            else:
+                        ret.append(file)
                 if fullpath not in ret:
                     ret.append(fullpath)
-        
+
         # look in any configured plugin paths, allow one level deep for subcategories 
         configured_paths = self.config.split(os.pathsep)
         for path in configured_paths:
diff --git a/test/TestRunner.py b/test/TestRunner.py
index cf17e66998..d833a01be0 100644
--- a/test/TestRunner.py
+++ b/test/TestRunner.py
@@ -27,6 +27,7 @@ class TestRunner(unittest.TestCase):
     def setUp(self):
         self.user = getpass.getuser()
         self.runner = ansible.runner.Runner(
+            basedir='test/',
             module_name='ping',
             module_path='library/',
             module_args='',
@@ -77,6 +78,12 @@ class TestRunner(unittest.TestCase):
         assert "localhost" in results['contacted']
         return results['contacted']['localhost']
 
+    def test_action_plugins(self):
+        result = self._run("uncategorized_plugin", [])
+        assert result.get("msg") == "uncategorized"
+        result = self._run("categorized_plugin", [])
+        assert result.get("msg") == "categorized"
+
     def test_ping(self):
         result = self._run('ping', [])
         assert "ping" in result
diff --git a/test/action_plugins/categorized_plugin.py b/test/action_plugins/categorized_plugin.py
new file mode 100644
index 0000000000..62fa6ab510
--- /dev/null
+++ b/test/action_plugins/categorized_plugin.py
@@ -0,0 +1,15 @@
+from ansible.runner import return_data
+
+
+class ActionModule (object):
+    def __init__(self, runner):
+        self.runner = runner
+
+    def run(self, conn, tmp, module_name, module_args, inject,
+            complex_args=None, **kwargs):
+        # This plug-in should be ignored in deference to
+        # category/categorized_plugin.py, so it should never actually
+        # run.
+        return return_data.ReturnData(
+            conn=conn, comm_ok=True,
+            result={"msg": "this plug-in should never be run"})
diff --git a/test/action_plugins/category/categorized_plugin.py b/test/action_plugins/category/categorized_plugin.py
new file mode 100644
index 0000000000..da23814c18
--- /dev/null
+++ b/test/action_plugins/category/categorized_plugin.py
@@ -0,0 +1,11 @@
+from ansible.runner import return_data
+
+
+class ActionModule (object):
+    def __init__(self, runner):
+        self.runner = runner
+
+    def run(self, conn, tmp, module_name, module_args, inject,
+            complex_args=None, **kwargs):
+        return return_data.ReturnData(conn=conn, comm_ok=True,
+                                      result={"msg": "categorized"})
diff --git a/test/action_plugins/uncategorized_plugin.py b/test/action_plugins/uncategorized_plugin.py
new file mode 100644
index 0000000000..bf4bf809bd
--- /dev/null
+++ b/test/action_plugins/uncategorized_plugin.py
@@ -0,0 +1,11 @@
+from ansible.runner import return_data
+
+
+class ActionModule (object):
+    def __init__(self, runner):
+        self.runner = runner
+
+    def run(self, conn, tmp, module_name, module_args, inject,
+            complex_args=None, **kwargs):
+        return return_data.ReturnData(conn=conn, comm_ok=True,
+                                      result={"msg": "uncategorized"})