diff --git a/lib/ansible/module_utils/facts.py b/lib/ansible/module_utils/facts.py
index 7a73a32ffbe..a3442d20bb1 100644
--- a/lib/ansible/module_utils/facts.py
+++ b/lib/ansible/module_utils/facts.py
@@ -46,7 +46,7 @@ except ImportError:
     import simplejson as json
 
 # --------------------------------------------------------------
-# timeout function to make sure some fact gathering 
+# timeout function to make sure some fact gathering
 # steps do not exceed a time limit
 
 class TimeoutError(Exception):
@@ -603,23 +603,38 @@ class LinuxHardware(Hardware):
 
     def get_cpu_facts(self):
         i = 0
+        vendor_id_occurrence = 0
+        model_name_occurrence = 0
         physid = 0
         coreid = 0
         sockets = {}
         cores = {}
+        xen_paravirt = False
         if not os.access("/proc/cpuinfo", os.R_OK):
             return
         self.facts['processor'] = []
         for line in open("/proc/cpuinfo").readlines():
             data = line.split(":", 1)
             key = data[0].strip()
+
             # model name is for Intel arch, Processor (mind the uppercase P)
             # works for some ARM devices, like the Sheevaplug.
             if key == 'model name' or key == 'Processor' or key == 'vendor_id':
                 if 'processor' not in self.facts:
                     self.facts['processor'] = []
                 self.facts['processor'].append(data[1].strip())
+                if key == 'vendor_id':
+                    vendor_id_occurrence += 1
+                if key == 'model name':
+                    model_name_occurrence += 1
                 i += 1
+            elif key == 'flags':
+                # Check for vme cpu flag, Xen paravirt does not expose this.
+                #   Need to detect Xen paravirt because it exposes cpuinfo
+                #   differently than Xen HVM or KVM and causes reporting of
+                #   only a single cpu core.
+                if 'vme' not in data:
+                    xen_paravirt = True
             elif key == 'physical id':
                 physid = data[1].strip()
                 if physid not in sockets:
@@ -634,13 +649,23 @@ class LinuxHardware(Hardware):
                 cores[coreid] = int(data[1].strip())
             elif key == '# processors':
                 self.facts['processor_cores'] = int(data[1].strip())
+
+        if vendor_id_occurrence == model_name_occurrence:
+            i = vendor_id_occurrence
+
         if self.facts['architecture'] != 's390x':
-            self.facts['processor_count'] = sockets and len(sockets) or i
-            self.facts['processor_cores'] = sockets.values() and sockets.values()[0] or 1
-            self.facts['processor_threads_per_core'] = ((cores.values() and
-                cores.values()[0] or 1) / self.facts['processor_cores'])
-            self.facts['processor_vcpus'] = (self.facts['processor_threads_per_core'] *
-                self.facts['processor_count'] * self.facts['processor_cores'])
+            if xen_paravirt:
+                self.facts['processor_count'] = i
+                self.facts['processor_cores'] = i
+                self.facts['processor_threads_per_core'] = 1
+                self.facts['processor_vcpus'] = i
+            else:
+                self.facts['processor_count'] = sockets and len(sockets) or i
+                self.facts['processor_cores'] = sockets.values() and sockets.values()[0] or 1
+                self.facts['processor_threads_per_core'] = ((cores.values() and
+                    cores.values()[0] or 1) / self.facts['processor_cores'])
+                self.facts['processor_vcpus'] = (self.facts['processor_threads_per_core'] *
+                    self.facts['processor_count'] * self.facts['processor_cores'])
 
     def get_dmi_facts(self):
         ''' learn dmi facts from system