diff --git a/lib/ansible/playbook/playbook_include.py b/lib/ansible/playbook/playbook_include.py
index 075e6dcbdf..1f4bddd4a3 100644
--- a/lib/ansible/playbook/playbook_include.py
+++ b/lib/ansible/playbook/playbook_include.py
@@ -61,10 +61,11 @@ class PlaybookInclude(Base, Taggable):
 
         pb._load_playbook_data(file_name=file_name, variable_manager=variable_manager)
 
-        # finally, playbook includes can specify a list of variables, which are simply
-        # used to update the vars of each play in the playbook
+        # finally, update each loaded playbook entry with any variables specified
+        # on the included playbook and/or any tags which may have been set
         for entry in pb._entries:
             entry.vars.update(new_obj.vars)
+            entry.tags = list(set(entry.tags).union(new_obj.tags))
 
         return pb
 
diff --git a/samples/included_playbook.yml b/samples/included_playbook.yml
new file mode 100644
index 0000000000..d56e9c68f7
--- /dev/null
+++ b/samples/included_playbook.yml
@@ -0,0 +1,6 @@
+- hosts: localhost
+  gather_facts: no
+  tags:
+  - included
+  tasks:
+  - debug: msg="incuded playbook, variable is {{a}}"
diff --git a/samples/test_playbook.include b/samples/test_playbook.include
new file mode 100644
index 0000000000..95c1a82147
--- /dev/null
+++ b/samples/test_playbook.include
@@ -0,0 +1,2 @@
+- include: included_playbook.yml a=1
+  tags: include