diff --git a/docsite/rst/playbooks2.rst b/docsite/rst/playbooks2.rst
index a47fdc58e9..c251734a09 100644
--- a/docsite/rst/playbooks2.rst
+++ b/docsite/rst/playbooks2.rst
@@ -141,6 +141,8 @@ period, without the rest of the domain.
 
 Don't worry about any of this unless you think you need it.  You'll know when you do.
 
+Also available, *inventory_dir* is the pathname of the directory holding Ansible's inventory host file.
+
 Variable File Separation
 ````````````````````````
 
diff --git a/lib/ansible/playbook/__init__.py b/lib/ansible/playbook/__init__.py
index 91e1aa39bc..4d561f3009 100644
--- a/lib/ansible/playbook/__init__.py
+++ b/lib/ansible/playbook/__init__.py
@@ -121,7 +121,10 @@ class PlayBook(object):
             self.inventory    = inventory
 
         self.basedir     = os.path.dirname(playbook) or '.'
-        (self.playbook, self.play_basedirs) = self._load_playbook_from_file(playbook)
+        vars = {}
+        if self.inventory.basedir() is not None:
+            vars['inventory_dir'] = self.inventory.basedir()
+        (self.playbook, self.play_basedirs) = self._load_playbook_from_file(playbook, vars)
 
     # *****************************************************
 
@@ -171,7 +174,7 @@ class PlayBook(object):
                     for t in tokens[1:]:
                         (k,v) = t.split("=", 1)
                         incvars[k] = utils.template(basedir, v, incvars)
-                    included_path = utils.path_dwim(basedir, tokens[0])
+                    included_path = utils.path_dwim(basedir, utils.template(basedir, tokens[0], incvars))
                     (plays, basedirs) = self._load_playbook_from_file(included_path, incvars)
                     for p in plays:
                         if 'vars' not in p:
diff --git a/lib/ansible/playbook/play.py b/lib/ansible/playbook/play.py
index 67e1c1a217..e59912c458 100644
--- a/lib/ansible/playbook/play.py
+++ b/lib/ansible/playbook/play.py
@@ -80,8 +80,11 @@ class Play(object):
 
         self._update_vars_files_for_host(None)
 
-        self._tasks      = self._load_tasks(self._ds.get('tasks', []))
-        self._handlers   = self._load_tasks(self._ds.get('handlers', []))
+        load_vars = {}
+        if self.playbook.inventory.basedir() is not None:
+            load_vars['inventory_dir'] = self.playbook.inventory.basedir();
+        self._tasks      = self._load_tasks(self._ds.get('tasks', []), load_vars)
+        self._handlers   = self._load_tasks(self._ds.get('handlers', []), load_vars)
 
         if self.tags is None:
             self.tags = []
diff --git a/lib/ansible/runner/__init__.py b/lib/ansible/runner/__init__.py
index f0826c3bdd..c0b5e9c9c5 100644
--- a/lib/ansible/runner/__init__.py
+++ b/lib/ansible/runner/__init__.py
@@ -337,6 +337,8 @@ class Runner(object):
         inject['hostvars'] = HostVars(self.setup_cache, self.inventory)
         inject['group_names'] = host_variables.get('group_names', [])
         inject['groups'] = self.inventory.groups_list()
+        if self.inventory.basedir() is not None:
+            inject['inventory_dir'] = self.inventory.basedir()
 
         # allow with_foo to work in playbooks...
         items = None