diff --git a/changelogs/fragments/7996-Add templating support to Icinga2 Inventory.yml b/changelogs/fragments/7996-Add templating support to Icinga2 Inventory.yml
new file mode 100644
index 0000000000..9998583b83
--- /dev/null
+++ b/changelogs/fragments/7996-Add templating support to Icinga2 Inventory.yml	
@@ -0,0 +1,2 @@
+minor_changes:
+  - icinga2 inventory plugin - add Jinja2 templating support to ``url``, ``user``, and ``password`` paramenters (https://github.com/ansible-collections/community.general/issues/7074, https://github.com/ansible-collections/community.general/pull/7996).
\ No newline at end of file
diff --git a/plugins/inventory/icinga2.py b/plugins/inventory/icinga2.py
index 1c67ea3237..a418707332 100644
--- a/plugins/inventory/icinga2.py
+++ b/plugins/inventory/icinga2.py
@@ -277,12 +277,22 @@ class InventoryModule(BaseInventoryPlugin, Constructable):
         self._read_config_data(path)
 
         # Store the options from the YAML file
-        self.icinga2_url = self.get_option('url').rstrip('/') + '/v1'
+        self.icinga2_url = self.get_option('url')
         self.icinga2_user = self.get_option('user')
         self.icinga2_password = self.get_option('password')
         self.ssl_verify = self.get_option('validate_certs')
         self.host_filter = self.get_option('host_filter')
         self.inventory_attr = self.get_option('inventory_attr')
+
+        if self.templar.is_template(self.icinga2_url):
+            self.icinga2_url = self.templar.template(variable=self.icinga2_url, disable_lookups=False)
+        if self.templar.is_template(self.icinga2_user):
+            self.icinga2_user = self.templar.template(variable=self.icinga2_user, disable_lookups=False)
+        if self.templar.is_template(self.icinga2_password):
+            self.icinga2_password = self.templar.template(variable=self.icinga2_password, disable_lookups=False)
+
+        self.icinga2_url = self.icinga2_url.rstrip('/') + '/v1'
+
         # Not currently enabled
         # self.cache_key = self.get_cache_key(path)
         # self.use_cache = cache and self.get_option('cache')