diff --git a/lib/ansible/playbook/play.py b/lib/ansible/playbook/play.py
index 550ed5571c..fc74228345 100644
--- a/lib/ansible/playbook/play.py
+++ b/lib/ansible/playbook/play.py
@@ -224,6 +224,8 @@ class Play(object):
             self.vars_files = [ self.vars_files ]
 
         if (host is not None):
+            self.playbook.SETUP_CACHE[host].update(self.vars)
+
             inventory = self.playbook.inventory
             hostrec = inventory.get_host(host)
             groupz = sorted(inventory.groups_for_host(host), key=lambda g: g.depth)
diff --git a/lib/ansible/runner/__init__.py b/lib/ansible/runner/__init__.py
index e3379644b0..f3e67653ae 100644
--- a/lib/ansible/runner/__init__.py
+++ b/lib/ansible/runner/__init__.py
@@ -703,6 +703,7 @@ class Runner(object):
 
         module_data = ""
         is_new_style=False
+
         with open(in_path) as f:
             module_data = f.read()
             if module_common.REPLACER in module_data: