diff --git a/lib/ansible/executor/process/result.py b/lib/ansible/executor/process/result.py
index 7fbee9a1b65..8810001702c 100644
--- a/lib/ansible/executor/process/result.py
+++ b/lib/ansible/executor/process/result.py
@@ -142,12 +142,6 @@ class ResultProcess(multiprocessing.Process):
                         result_items = [ result._result ]
 
                     for result_item in result_items:
-                        #if 'include' in result_item:
-                        #    include_variables = result_item.get('include_variables', dict())
-                        #    if 'item' in result_item:
-                        #        include_variables['item'] = result_item['item']
-                        #    self._send_result(('include', result._host, result._task, result_item['include'], include_variables))
-                        #elif 'add_host' in result_item:
                         if 'add_host' in result_item:
                             # this task added a new host (add_host module)
                             self._send_result(('add_host', result_item))
diff --git a/lib/ansible/playbook/included_file.py b/lib/ansible/playbook/included_file.py
index 74fdfbc9034..92bf325f5b4 100644
--- a/lib/ansible/playbook/included_file.py
+++ b/lib/ansible/playbook/included_file.py
@@ -19,6 +19,8 @@
 from __future__ import (absolute_import, division, print_function)
 __metaclass__ = type
 
+from ansible.template import Templar
+
 class IncludedFile:
 
     def __init__(self, filename, args, task):
@@ -38,7 +40,7 @@ class IncludedFile:
         return "%s (%s): %s" % (self._filename, self._args, self._hosts)
 
     @staticmethod
-    def process_include_results(results, tqm, iterator, loader):
+    def process_include_results(results, tqm, iterator, loader, variable_manager):
         included_files = []
 
         for res in results:
@@ -62,10 +64,16 @@ class IncludedFile:
                     else:
                         include_file = loader.path_dwim(res._task.args.get('_raw_params'))
 
+                    task_vars = variable_manager.get_vars(loader=loader, play=iterator._play, host=res._host, task=original_task)
+                    #task_vars = tqm.add_tqm_variables(task_vars, play=iterator._play)
+                    templar = Templar(loader=loader, variables=task_vars)
+
                     include_variables = include_result.get('include_variables', dict())
                     if 'item' in include_result:
                         include_variables['item'] = include_result['item']
+                        task_vars['item'] = include_result['item']
 
+                    include_file = templar.template(include_file)
                     inc_file = IncludedFile(include_file, include_variables, original_task)
 
                     try:
diff --git a/lib/ansible/plugins/strategies/linear.py b/lib/ansible/plugins/strategies/linear.py
index 1ce9677f8f9..70ab50d8eac 100644
--- a/lib/ansible/plugins/strategies/linear.py
+++ b/lib/ansible/plugins/strategies/linear.py
@@ -213,7 +213,7 @@ class StrategyModule(StrategyBase):
                 host_results.extend(results)
 
                 try:
-                    included_files = IncludedFile.process_include_results(host_results, self._tqm, iterator=iterator, loader=self._loader)
+                    included_files = IncludedFile.process_include_results(host_results, self._tqm, iterator=iterator, loader=self._loader, variable_manager=self._variable_manager)
                 except AnsibleError, e:
                     return False