diff --git a/contrib/inventory/openstack.py b/contrib/inventory/openstack.py
index 231488b06d..b82a042c29 100755
--- a/contrib/inventory/openstack.py
+++ b/contrib/inventory/openstack.py
@@ -32,6 +32,13 @@
 # all of them and present them as one contiguous inventory.
 #
 # See the adjacent openstack.yml file for an example config file
+# There are two ansible inventory specific options that can be set in
+# the inventory section.
+# expand_hostvars controls whether or not the inventory will make extra API
+#                 calls to fill out additional information about each server
+# use_hostnames changes the behavior from registering every host with its UUID
+#               and making a group of its hostname to only doing this if the
+#               hostname in question has more than one server
 
 import argparse
 import collections
@@ -51,7 +58,7 @@ import shade.inventory
 CONFIG_FILES = ['/etc/ansible/openstack.yaml']
 
 
-def get_groups_from_server(server_vars):
+def get_groups_from_server(server_vars, namegroup=True):
     groups = []
 
     region = server_vars['region']
@@ -76,7 +83,8 @@ def get_groups_from_server(server_vars):
             groups.append(extra_group)
 
     groups.append('instance-%s' % server_vars['id'])
-    groups.append(server_vars['name'])
+    if namegroup:
+        groups.append(server_vars['name'])
 
     for key in ('flavor', 'image'):
         if 'name' in server_vars[key]:
@@ -106,17 +114,36 @@ def get_host_groups(inventory, refresh=False):
 
 def get_host_groups_from_cloud(inventory):
     groups = collections.defaultdict(list)
+    firstpass = collections.defaultdict(list)
     hostvars = {}
-    for server in inventory.list_hosts():
+    list_args = {}
+    if hasattr(inventory, 'extra_config'):
+        use_hostnames = inventory.extra_config['use_hostnames']
+        list_args['expand'] = inventory.extra_config['expand_hostvars']
+    else:
+        use_hostnames = False
+
+    for server in inventory.list_hosts(**list_args):
 
         if 'interface_ip' not in server:
             continue
-        for group in get_groups_from_server(server):
-            groups[group].append(server['id'])
-        hostvars[server['id']] = dict(
-            ansible_ssh_host=server['interface_ip'],
-            openstack=server,
-        )
+        firstpass[server['name']].append(server)
+    for name, servers in firstpass.items():
+        if len(servers) == 1 and use_hostnames:
+            server = servers[0]
+            hostvars[name] = dict(
+                ansible_ssh_host=server['interface_ip'],
+                openstack=server)
+            for group in get_groups_from_server(server, namegroup=False):
+                groups[group].append(server['name'])
+        else:
+            for server in servers:
+                server_id = server['id']
+                hostvars[server_id] = dict(
+                    ansible_ssh_host=server['interface_ip'],
+                    openstack=server)
+                for group in get_groups_from_server(server, namegroup=True):
+                    groups[group].append(server_id)
     groups['_meta'] = {'hostvars': hostvars}
     return groups
 
@@ -171,11 +198,21 @@ def main():
     try:
         config_files = os_client_config.config.CONFIG_FILES + CONFIG_FILES
         shade.simple_logging(debug=args.debug)
-        inventory = shade.inventory.OpenStackInventory(
+        inventory_args = dict(
             refresh=args.refresh,
             config_files=config_files,
             private=args.private,
         )
+        if hasattr(shade.inventory.OpenStackInventory, 'extra_config'):
+            inventory_args.update(dict(
+                config_key='ansible',
+                config_defaults={
+                    'use_hostnames': False,
+                    'expand_hostvars': True,
+                }
+            ))
+
+        inventory = shade.inventory.OpenStackInventory(**inventory_args)
 
         if args.list:
             output = get_host_groups(inventory, refresh=args.refresh)
diff --git a/contrib/inventory/openstack.yml b/contrib/inventory/openstack.yml
index a99bb02058..1520e2937e 100644
--- a/contrib/inventory/openstack.yml
+++ b/contrib/inventory/openstack.yml
@@ -26,3 +26,6 @@ clouds:
       username: stack
       password: stack
       project_name: stack
+ansible:
+  use_hostnames: True
+  expand_hostvars: False