diff --git a/lib/ansible/plugins/inventory/__init__.py b/lib/ansible/plugins/inventory/__init__.py
index 9697095aeb..8244b58747 100644
--- a/lib/ansible/plugins/inventory/__init__.py
+++ b/lib/ansible/plugins/inventory/__init__.py
@@ -164,7 +164,7 @@ class BaseInventoryPlugin(AnsiblePlugin):
         self.templar = Templar(loader=loader)
 
     def verify_file(self, path):
-        ''' Verify if file is usable by this plugin, base does minimal accessability check
+        ''' Verify if file is usable by this plugin, base does minimal accessibility check
             :arg path: a string that was passed as an inventory source,
                  it normally is a path to a config file, but this is not a requirement,
                  it can also be parsed itself as the inventory data to process.
@@ -273,7 +273,7 @@ class Cacheable(object):
 class Constructable(object):
 
     def _compose(self, template, variables):
-        ''' helper method for pluigns to compose variables for Ansible based on jinja2 expression and inventory vars'''
+        ''' helper method for plugins to compose variables for Ansible based on jinja2 expression and inventory vars'''
         t = self.templar
         t.set_available_variables(variables)
         return t.template('%s%s%s' % (t.environment.variable_start_string, template, t.environment.variable_end_string), disable_lookups=True)
@@ -291,7 +291,7 @@ class Constructable(object):
                 self.inventory.set_variable(host, varname, composite)
 
     def _add_host_to_composed_groups(self, groups, variables, host, strict=False):
-        ''' helper to create complex groups for plugins based on jinaj2 conditionals, hosts that meet the conditional are added to group'''
+        ''' helper to create complex groups for plugins based on jinja2 conditionals, hosts that meet the conditional are added to group'''
         # process each 'group entry'
         if groups and isinstance(groups, dict):
             self.templar.set_available_variables(variables)
diff --git a/lib/ansible/plugins/inventory/vmware_vm_inventory.py b/lib/ansible/plugins/inventory/vmware_vm_inventory.py
new file mode 100644
index 0000000000..c94eb76965
--- /dev/null
+++ b/lib/ansible/plugins/inventory/vmware_vm_inventory.py
@@ -0,0 +1,418 @@
+#
+# Copyright: (c) 2018, Ansible Project
+# Copyright: (c) 2018, Abhijeet Kasurde <akasurde@redhat.com>
+#
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import (absolute_import, division, print_function)
+__metaclass__ = type
+
+DOCUMENTATION = '''
+    name: vmware_vm_inventory
+    plugin_type: inventory
+    short_description: VMware Guest inventory source
+    version_added: "2.6"
+    description:
+        - Get virtual machines as inventory hosts from VMware environment.
+        - Uses any file which ends with vmware.yml or vmware.yaml as a YAML configuration file.
+        - The inventory_hostname is always the 'Name' and UUID of the virtual machine. UUID is added as VMware allows virtual machines with the same name.
+    extends_documentation_fragment:
+      - inventory_cache
+    requirements:
+      - "Python >= 2.7"
+      - "PyVmomi"
+      - "requests >= 2.3"
+      - "vSphere Automation SDK - For tag feature"
+      - "vCloud Suite SDK - For tag feature"
+    options:
+        hostname:
+            description: Name of vCenter or ESXi server.
+            required: True
+            env:
+              - name: VMWARE_SERVER
+        username:
+            description: Name of vSphere admin user.
+            required: True
+            env:
+              - name: VMWARE_USERNAME
+        password:
+            description: Password of vSphere admin user.
+            required: True
+            env:
+              - name: VMWARE_PASSWORD
+        port:
+            description: Port number used to connect to vCenter or ESXi Server.
+            default: 443
+            env:
+              - name: VMWARE_PORT
+        validate_certs:
+            description:
+            - Allows connection when SSL certificates are not valid. Set to C(false) when certificates are not trusted.
+            default: True
+            type: boolean
+        with_tags:
+            description:
+            - Include tags and associated virtual machines.
+            - Requires 'vSphere Automation SDK' and 'vCloud Suite SDK' libraries to be installed on the given controller machine.
+            - Please refer following URLs for installation steps
+            - 'https://code.vmware.com/web/sdk/65/vsphere-automation-python'
+            - 'https://code.vmware.com/web/sdk/60/vcloudsuite-python'
+            default: False
+            type: boolean
+'''
+
+EXAMPLES = '''
+    # Sample configuration file for VMware Guest dynamic inventory
+    plugin: vmware_vm_inventory
+    strict: False
+    hostname: 10.65.223.31
+    username: administrator@vsphere.local
+    password: Esxi@123$%
+    validate_certs: False
+    with_tags: True
+'''
+
+import ssl
+import atexit
+from ansible.errors import AnsibleError, AnsibleParserError
+
+try:
+    # requests is required for exception handling of the ConnectionError
+    import requests
+    HAS_REQUESTS = True
+except ImportError:
+    HAS_REQUESTS = False
+
+try:
+    from pyVim import connect
+    from pyVmomi import vim, vmodl
+    HAS_PYVMOMI = True
+except ImportError:
+    HAS_PYVMOMI = False
+
+try:
+    from vmware.vapi.lib.connect import get_requests_connector
+    from vmware.vapi.security.session import create_session_security_context
+    from vmware.vapi.security.user_password import create_user_password_security_context
+    from com.vmware.cis_client import Session
+    from com.vmware.vapi.std_client import DynamicID
+    from com.vmware.cis.tagging_client import Tag, TagAssociation
+    HAS_VCLOUD = True
+except ImportError:
+    HAS_VCLOUD = False
+
+try:
+    from vmware.vapi.stdlib.client.factories import StubConfigurationFactory
+    HAS_VSPHERE = True
+except ImportError:
+    HAS_VSPHERE = False
+
+from ansible.plugins.inventory import BaseInventoryPlugin, Cacheable
+
+
+class InventoryModule(BaseInventoryPlugin, Cacheable):
+
+    NAME = 'vmware_vm_inventory'
+
+    def _set_credentials(self):
+        """
+        Set credentials
+        """
+        self.hostname = self.get_option('hostname')
+        self.username = self.get_option('username')
+        self.password = self.get_option('password')
+        self.port = self.get_option('port')
+        self.with_tags = self.get_option('with_tags')
+
+        self.validate_certs = self.get_option('validate_certs')
+
+        if not HAS_VSPHERE and self.with_tags:
+            raise AnsibleError("Unable to find 'vSphere Automation SDK' Python library which is required."
+                               " Please refer this URL for installation steps"
+                               " - https://code.vmware.com/web/sdk/65/vsphere-automation-python")
+
+        if not HAS_VCLOUD and self.with_tags:
+            raise AnsibleError("Unable to find 'vCloud Suite SDK' Python library which is required."
+                               " Please refer this URL for installation steps"
+                               " - https://code.vmware.com/web/sdk/60/vcloudsuite-python")
+
+        if not all([self.hostname, self.username, self.password]):
+            raise AnsibleError("Missing one of the following : hostname, username, password. Please read "
+                               "the documentation for more information.")
+
+    def _login_vapi(self):
+        """
+        Login to vCenter API using REST call
+        Returns: connection object
+
+        """
+        session = requests.Session()
+        session.verify = self.validate_certs
+        if not self.validate_certs:
+            # Disable warning shown at stdout
+            requests.packages.urllib3.disable_warnings()
+
+        vcenter_url = "https://%s/api" % self.hostname
+
+        # Get request connector
+        connector = get_requests_connector(session=session, url=vcenter_url)
+        # Create standard Configuration
+        stub_config = StubConfigurationFactory.new_std_configuration(connector)
+        # Use username and password in the security context to authenticate
+        security_context = create_user_password_security_context(self.username, self.password)
+        # Login
+        stub_config.connector.set_security_context(security_context)
+        # Create the stub for the session service and login by creating a session.
+        session_svc = Session(stub_config)
+        session_id = session_svc.create()
+
+        # After successful authentication, store the session identifier in the security
+        # context of the stub and use that for all subsequent remote requests
+        session_security_context = create_session_security_context(session_id)
+        stub_config.connector.set_security_context(session_security_context)
+
+        if stub_config is None:
+            raise AnsibleError("Failed to login to %s using %s" % (self.hostname, self.username))
+        return stub_config
+
+    def _login(self):
+        """
+        Login to vCenter or ESXi server
+        Returns: connection object
+
+        """
+        if self.validate_certs and not hasattr(ssl, 'SSLContext'):
+            raise AnsibleError('pyVim does not support changing verification mode with python < 2.7.9. Either update '
+                               'python or set validate_certs to false in configuration YAML file.')
+
+        ssl_context = None
+        if not self.validate_certs and hasattr(ssl, 'SSLContext'):
+            ssl_context = ssl.SSLContext(ssl.PROTOCOL_SSLv23)
+            ssl_context.verify_mode = ssl.CERT_NONE
+
+        service_instance = None
+        try:
+            service_instance = connect.SmartConnect(host=self.hostname, user=self.username,
+                                                    pwd=self.password, sslContext=ssl_context,
+                                                    port=self.port)
+        except vim.fault.InvalidLogin as e:
+            raise AnsibleParserError("Unable to log on to vCenter or ESXi API at %s:%s as %s: %s" % (self.hostname, self.port, self.username, e.msg))
+        except vim.fault.NoPermission as e:
+            raise AnsibleParserError("User %s does not have required permission"
+                                     " to log on to vCenter or ESXi API at %s:%s : %s" % (self.username, self.hostname, self.port, e.msg))
+        except (requests.ConnectionError, ssl.SSLError) as e:
+            raise AnsibleParserError("Unable to connect to vCenter or ESXi API at %s on TCP/%s: %s" % (self.hostname, self.port, e))
+        except vmodl.fault.InvalidRequest as e:
+            # Request is malformed
+            raise AnsibleParserError("Failed to get a response from server %s:%s as "
+                                     "request is malformed: %s" % (self.hostname, self.port, e.msg))
+        except Exception as e:
+            raise AnsibleParserError("Unknown error while connecting to vCenter or ESXi API at %s:%s : %s" % (self.hostname, self.port, e))
+
+        if service_instance is None:
+            raise AnsibleParserError("Unknown error while connecting to vCenter or ESXi API at %s:%s" % (self.hostname, self.port))
+
+        atexit.register(connect.Disconnect, service_instance)
+        return service_instance.RetrieveContent()
+
+    def verify_file(self, path):
+        """
+        Verify plugin configuration file and mark this plugin active
+        Args:
+            path: Path of configuration YAML file
+
+        Returns: True if everything is correct, else False
+
+        """
+        valid = False
+        if super(InventoryModule, self).verify_file(path):
+            if path.endswith(('vmware.yaml', 'vmware.yml')):
+                valid = True
+
+        if not HAS_REQUESTS:
+            raise AnsibleParserError('Please install "requests" Python module as this is required'
+                                     ' for VMware Guest dynamic inventory plugin.')
+        elif not HAS_PYVMOMI:
+            raise AnsibleParserError('Please install "PyVmomi" Python module as this is required'
+                                     ' for VMware Guest dynamic inventory plugin.')
+
+        if HAS_REQUESTS:
+            # Pyvmomi 5.5 and onwards requires requests 2.3
+            # https://github.com/vmware/pyvmomi/blob/master/requirements.txt
+            required_version = (2, 3)
+            requests_version = requests.__version__.split(".")[:2]
+            try:
+                requests_major_minor = tuple(map(int, requests_version))
+            except ValueError:
+                raise AnsibleParserError("Failed to parse 'requests' library version.")
+
+            if requests_major_minor < required_version:
+                raise AnsibleParserError("'requests' library version should"
+                                         " be >= %s, found: %s." % (".".join([str(w) for w in required_version]),
+                                                                    requests.__version__))
+            valid = True
+
+        return valid
+
+    def parse(self, inventory, loader, path, cache=True):
+        """
+        Parses the inventory file
+        """
+        super(InventoryModule, self).parse(inventory, loader, path, cache=cache)
+
+        cache_key = self.get_cache_key(path)
+
+        config_data = self._read_config_data(path)
+
+        source_data = None
+        if cache:
+            cache = self.get_option('cache')
+
+        update_cache = False
+        if cache:
+            try:
+                source_data = self.cache.get(cache_key)
+            except KeyError:
+                update_cache = True
+
+        # set _options from config data
+        self._consume_options(config_data)
+
+        self._set_credentials()
+        self.content = self._login()
+        if self.with_tags:
+            self.rest_content = self._login_vapi()
+
+        using_current_cache = cache and not update_cache
+        cacheable_results = self._populate_from_source(source_data, using_current_cache)
+
+        if update_cache:
+            self.cache.set(cache_key, cacheable_results)
+
+    def _populate_from_cache(self, source_data):
+        """
+        Populate inventory from cache
+        """
+        hostvars = source_data.pop('_meta', {}).get('hostvars', {})
+        for group in source_data:
+            if group == 'all':
+                continue
+            else:
+                self.inventory.add_group(group)
+                self.inventory.add_child('all', group)
+        if not source_data:
+            for host in hostvars:
+                self.inventory.add_host(host)
+
+    def _populate_from_source(self, source_data, using_current_cache):
+        """
+        Populate inventory data from direct source
+
+        """
+        if using_current_cache:
+            self._populate_from_cache(source_data)
+            return source_data
+
+        cacheable_results = {}
+        hostvars = {}
+        objects = self._get_managed_objects_properties(vim_type=vim.VirtualMachine, properties=['name'])
+
+        if self.with_tags:
+            tag_svc = Tag(self.rest_content)
+            tag_association = TagAssociation(self.rest_content)
+
+            tags_info = dict()
+            tags = tag_svc.list()
+            for tag in tags:
+                tag_obj = tag_svc.get(tag)
+                tags_info[tag_obj.id] = tag_obj.name
+                if tag_obj.name not in cacheable_results:
+                    cacheable_results[tag_obj.name] = {'hosts': []}
+                    self.inventory.add_group(tag_obj.name)
+
+        for temp_vm_object in objects:
+            for temp_vm_object_property in temp_vm_object.propSet:
+                # VMware does not provide a way to uniquely identify VM by its name
+                # i.e. there can be two virtual machines with same name
+                # Appending "_" and VMware UUID to make it unique
+                current_host = temp_vm_object_property.val + "_" + temp_vm_object.obj.config.uuid
+
+                if current_host not in hostvars:
+                    hostvars[current_host] = {}
+                    self.inventory.add_host(current_host)
+
+                    # Only gather facts related to tag if vCloud and vSphere is installed.
+                    if HAS_VCLOUD and HAS_VSPHERE and self.with_tags:
+                        # Add virtual machine to appropriate tag group
+                        vm_mo_id = temp_vm_object.obj._GetMoId()
+                        vm_dynamic_id = DynamicID(type='VirtualMachine', id=vm_mo_id)
+                        attached_tags = tag_association.list_attached_tags(vm_dynamic_id)
+
+                        for tag_id in attached_tags:
+                            self.inventory.add_child(tags_info[tag_id], current_host)
+                            cacheable_results[tags_info[tag_id]]['hosts'].append(current_host)
+
+                    # Based on power state of virtual machine
+                    vm_power = temp_vm_object.obj.summary.runtime.powerState
+                    if vm_power not in cacheable_results:
+                        cacheable_results[vm_power] = []
+                        self.inventory.add_group(vm_power)
+                    cacheable_results[vm_power].append(current_host)
+                    self.inventory.add_child(vm_power, current_host)
+
+                    # Based on guest id
+                    vm_guest_id = temp_vm_object.obj.config.guestId
+                    if vm_guest_id and vm_guest_id not in cacheable_results:
+                        cacheable_results[vm_guest_id] = []
+                        self.inventory.add_group(vm_guest_id)
+                    cacheable_results[vm_guest_id].append(current_host)
+                    self.inventory.add_child(vm_guest_id, current_host)
+
+        return cacheable_results
+
+    def _get_managed_objects_properties(self, vim_type, properties=None):
+        """
+        Look up a Managed Object Reference in vCenter / ESXi Environment
+        :param vim_type: Type of vim object e.g, for datacenter - vim.Datacenter
+        :param properties: List of properties related to vim object e.g. Name
+        :return: local content object
+        """
+        # Get Root Folder
+        root_folder = self.content.rootFolder
+
+        if properties is None:
+            properties = ['name']
+
+        # Create Container View with default root folder
+        mor = self.content.viewManager.CreateContainerView(root_folder, [vim_type], True)
+
+        # Create Traversal spec
+        traversal_spec = vmodl.query.PropertyCollector.TraversalSpec(
+            name="traversal_spec",
+            path='view',
+            skip=False,
+            type=vim.view.ContainerView
+        )
+
+        # Create Property Spec
+        property_spec = vmodl.query.PropertyCollector.PropertySpec(
+            type=vim_type,  # Type of object to retrieved
+            all=False,
+            pathSet=properties
+        )
+
+        # Create Object Spec
+        object_spec = vmodl.query.PropertyCollector.ObjectSpec(
+            obj=mor,
+            skip=True,
+            selectSet=[traversal_spec]
+        )
+
+        # Create Filter Spec
+        filter_spec = vmodl.query.PropertyCollector.FilterSpec(
+            objectSet=[object_spec],
+            propSet=[property_spec],
+            reportMissingObjectsInResults=False
+        )
+
+        return self.content.propertyCollector.RetrieveContents([filter_spec])
diff --git a/test/integration/targets/vmware_vm_inventory/aliases b/test/integration/targets/vmware_vm_inventory/aliases
new file mode 100644
index 0000000000..8a4d29b3a9
--- /dev/null
+++ b/test/integration/targets/vmware_vm_inventory/aliases
@@ -0,0 +1,3 @@
+shippable/vcenter/group1
+cloud/vcenter
+destructive
diff --git a/test/integration/targets/vmware_vm_inventory/ansible.cfg b/test/integration/targets/vmware_vm_inventory/ansible.cfg
new file mode 100644
index 0000000000..d8292cf660
--- /dev/null
+++ b/test/integration/targets/vmware_vm_inventory/ansible.cfg
@@ -0,0 +1,5 @@
+[defaults]
+inventory = test-config.vmware.yaml
+
+[inventory]
+enable_plugins = vmware_vm_inventory
diff --git a/test/integration/targets/vmware_vm_inventory/runme.sh b/test/integration/targets/vmware_vm_inventory/runme.sh
new file mode 100755
index 0000000000..0cdabb6b18
--- /dev/null
+++ b/test/integration/targets/vmware_vm_inventory/runme.sh
@@ -0,0 +1,37 @@
+#!/usr/bin/env bash
+
+[[ -n "$DEBUG" || -n "$ANSIBLE_DEBUG" ]] && set -x
+
+set -euo pipefail
+
+export ANSIBLE_CONFIG=ansible.cfg
+export vcenter_host="${vcenter_host:-0.0.0.0}"
+export VMWARE_SERVER="${vcenter_host}"
+export VMWARE_USERNAME="${VMWARE_USERNAME:-user}"
+export VMWARE_PASSWORD="${VMWARE_PASSWORD:-pass}"
+VMWARE_CONFIG=test-config.vmware.yaml
+
+cat > "$VMWARE_CONFIG" <<VMWARE_YAML
+plugin: vmware_vm_inventory
+strict: False
+validate_certs: False
+with_tags: False
+VMWARE_YAML
+
+trap 'rm -f "${VMWARE_CONFIG}"' INT TERM EXIT
+
+echo "DEBUG: Using ${vcenter_host} with username ${VMWARE_USERNAME} and password ${VMWARE_PASSWORD}"
+
+echo "Kill all previous instances"
+curl "http://${vcenter_host}:5000/killall" > /dev/null 2>&1
+
+echo "Start new VCSIM server"
+curl "http://${vcenter_host}:5000/spawn?datacenter=1&cluster=1&folder=0" > /dev/null 2>&1
+
+echo "Debugging new instances"
+curl "http://${vcenter_host}:5000/govc_find"
+
+# Get inventory
+ansible-inventory -i ${VMWARE_CONFIG} --list
+# Test playbook with given inventory
+ansible-playbook -i ${VMWARE_CONFIG} test_vmware_vm_inventory.yml --connection=local "$@"
diff --git a/test/integration/targets/vmware_vm_inventory/test_vmware_vm_inventory.yml b/test/integration/targets/vmware_vm_inventory/test_vmware_vm_inventory.yml
new file mode 100644
index 0000000000..5cdc1350ba
--- /dev/null
+++ b/test/integration/targets/vmware_vm_inventory/test_vmware_vm_inventory.yml
@@ -0,0 +1,21 @@
+# Test code for the vmware guest dynamic plugin module
+# Copyright: (c) 2018, Abhijeet Kasurde <akasurde@redhat.com>
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+---
+- name: Test VMware Guest Dynamic Inventroy Plugin
+  hosts: localhost
+  tasks:
+    - name: store the vcenter container ip
+      set_fact:
+        vcsim: "{{ lookup('env', 'vcenter_host') }}"
+
+    - debug:
+        var: vcsim
+
+    - name: Check that there are 'all' and 'otherGuest' groups present in inventory
+      assert:
+        that: "'{{ item }}' in {{ groups.keys() | list }}"
+      with_items:
+      - all
+      - otherGuest