diff --git a/lib/ansible/inventory/ini.py b/lib/ansible/inventory/ini.py
index 4b1607d884..17aee923b9 100644
--- a/lib/ansible/inventory/ini.py
+++ b/lib/ansible/inventory/ini.py
@@ -24,6 +24,7 @@ from ansible.inventory.expand_hosts import detect_range
 from ansible.inventory.expand_hosts import expand_hostname_range
 from ansible import errors
 import shlex
+import re
 
 class InventoryParser(object):
     """
@@ -167,5 +168,8 @@ class InventoryParser(object):
                 if line.find("=") == -1:
                     raise errors.AnsibleError("variables assigned to group must be in key=value form")
                 else:
-                    (k,v) = line.split("=",1)
-                    group.set_variable(k,v)
+                    (k, v) = [e.strip() for e in line.split("=", 1)]
+                    if re.match(r"^(['\"]).*\1$", v):
+                        group.set_variable(k, re.sub(r"^['\"]|['\"]$", '', v))
+                    else:
+                        group.set_variable(k, v)
diff --git a/test/TestInventory.py b/test/TestInventory.py
index a089aa1a74..2a0bd8d6f6 100644
--- a/test/TestInventory.py
+++ b/test/TestInventory.py
@@ -142,7 +142,9 @@ class TestInventory(unittest.TestCase):
         print vars
 
         expected = dict(
-            a='1', b='2', c='3', d='10002', rga='1', rgb='2', rgc='3',
+            a='1', b='2', c='3', d='10002', e='10003', f='10004 != 10005',
+            g='  g  ', h='  h  ', i="'  i  \"", j='"  j',
+            rga='1', rgb='2', rgc='3',
             inventory_hostname='rtp_a', inventory_hostname_short='rtp_a',
             group_names=[ 'eastcoast', 'nc', 'redundantgroup', 'redundantgroup2', 'redundantgroup3', 'rtp', 'us' ]
         )
diff --git a/test/complex_hosts b/test/complex_hosts
index 8c2c726f3b..0c568161c3 100644
--- a/test/complex_hosts
+++ b/test/complex_hosts
@@ -34,6 +34,12 @@ rgc=3
 b=10000
 c=10001
 d=10002
+e =   10003
+ f =  10004 != 10005
+  g = "  g  "
+   h = '  h  '
+    i = '  i  "
+    j  = "  j  
 
 [rtp]
 rtp_a