diff --git a/lib/ansible/playbook/helpers.py b/lib/ansible/playbook/helpers.py
index 14b4f480d5..1667f5c42e 100644
--- a/lib/ansible/playbook/helpers.py
+++ b/lib/ansible/playbook/helpers.py
@@ -189,7 +189,19 @@ def load_list_of_tasks(ds, play, block=None, role=None, task_include=None, use_h
                         if not isinstance(parent_include, TaskInclude):
                             parent_include = parent_include._parent
                             continue
-                        parent_include_dir = os.path.dirname(templar.template(parent_include.args.get('_raw_params')))
+                        try:
+                            parent_include_dir = os.path.dirname(templar.template(parent_include.args.get('_raw_params')))
+                        except AnsibleUndefinedVariable as e:
+                            if not parent_include.statically_loaded:
+                                raise AnsibleParserError(
+                                    "Error when evaluating variable in dynamic parent include path: %s. "
+                                    "When using static imports, the parent dynamic include cannot utilize host facts "
+                                    "or variables from inventory" % parent_include.args.get('_raw_params'),
+                                    obj=task_ds,
+                                    suppress_extended_error=True,
+                                    orig_exc=e
+                                )
+                            raise
                         if cumulative_path is None:
                             cumulative_path = parent_include_dir
                         elif not os.path.isabs(cumulative_path):
@@ -212,9 +224,9 @@ def load_list_of_tasks(ds, play, block=None, role=None, task_include=None, use_h
                             include_target = templar.template(t.args['_raw_params'])
                         except AnsibleUndefinedVariable as e:
                             raise AnsibleParserError(
-                                "Error when evaluating variable in include name: %s.\n\n"
-                                "When using static includes, ensure that any variables used in their names are defined in vars/vars_files\n"
-                                "or extra-vars passed in from the command line. Static includes cannot use variables from inventory\n"
+                                "Error when evaluating variable in import path: %s.\n\n"
+                                "When using static imports, ensure that any variables used in their names are defined in vars/vars_files\n"
+                                "or extra-vars passed in from the command line. Static imports cannot use variables from facts or inventory\n"
                                 "sources like group or host vars." % t.args['_raw_params'],
                                 obj=task_ds,
                                 suppress_extended_error=True,
diff --git a/lib/ansible/playbook/included_file.py b/lib/ansible/playbook/included_file.py
index 7681ba6574..db4f89eae3 100644
--- a/lib/ansible/playbook/included_file.py
+++ b/lib/ansible/playbook/included_file.py
@@ -144,8 +144,6 @@ class IncludedFile:
                                 include_file = loader.path_dwim(include_result['include'])
 
                         include_file = templar.template(include_file)
-                        # Update the task args to reflect the expanded/templated path
-                        original_task.args['_raw_params'] = include_file
                         inc_file = IncludedFile(include_file, include_variables, original_task)
                     else:
                         # template the included role's name here
diff --git a/test/integration/targets/include_import/include_path_inheritance/one/include_me.yml b/test/integration/targets/include_import/include_path_inheritance/one/include_me.yml
deleted file mode 100644
index ea345d2852..0000000000
--- a/test/integration/targets/include_import/include_path_inheritance/one/include_me.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-- debug:
-    msg: one
diff --git a/test/integration/targets/include_import/include_path_inheritance/playbook.yml b/test/integration/targets/include_import/include_path_inheritance/playbook.yml
deleted file mode 100644
index b92e0f5d58..0000000000
--- a/test/integration/targets/include_import/include_path_inheritance/playbook.yml
+++ /dev/null
@@ -1,14 +0,0 @@
-- hosts: testhost:testhost2
-  tasks:
-    - set_fact:
-        include_me: one
-      when: inventory_hostname == ansible_play_hosts[0]
-
-    - set_fact:
-        include_me: two
-      when: inventory_hostname == ansible_play_hosts[1]
-
-    - debug:
-        var: include_me
-
-    - include_tasks: '{{ include_me }}/include_me.yml'
diff --git a/test/integration/targets/include_import/include_path_inheritance/two/include_me.yml b/test/integration/targets/include_import/include_path_inheritance/two/include_me.yml
deleted file mode 100644
index 96855323a0..0000000000
--- a/test/integration/targets/include_import/include_path_inheritance/two/include_me.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-- debug:
-    msg: two
diff --git a/test/integration/targets/include_import/runme.sh b/test/integration/targets/include_import/runme.sh
index b8a8a4ce9b..af1abb1563 100755
--- a/test/integration/targets/include_import/runme.sh
+++ b/test/integration/targets/include_import/runme.sh
@@ -64,10 +64,6 @@ ANSIBLE_STRATEGY='linear' ansible-playbook test_grandparent_inheritance.yml -i .
 ANSIBLE_STRATEGY='linear' ansible-playbook undefined_var/playbook.yml  -i ../../inventory "$@"
 ANSIBLE_STRATEGY='free' ansible-playbook undefined_var/playbook.yml  -i ../../inventory "$@"
 
-# Include path inheritance using host var for include file path
-ANSIBLE_STRATEGY='linear' ansible-playbook include_path_inheritance/playbook.yml  -i ../../inventory "$@"
-ANSIBLE_STRATEGY='free' ansible-playbook include_path_inheritance/playbook.yml  -i ../../inventory "$@"
-
 # include_ + apply (explicit inheritance)
 ANSIBLE_STRATEGY='linear' ansible-playbook apply/include_apply.yml -i ../../inventory "$@" --tags foo
 set +e