diff --git a/lib/ansible/inventory/__init__.py b/lib/ansible/inventory/__init__.py
index 6e1a356e9fc..2316104b63b 100644
--- a/lib/ansible/inventory/__init__.py
+++ b/lib/ansible/inventory/__init__.py
@@ -104,27 +104,12 @@ class Inventory(object):
         if isinstance(pattern, list):
             pattern = ';'.join(pattern)
         patterns = pattern.replace(";",":").split(":")
-        positive_patterns = [ p for p in patterns if not p.startswith("!") ]
-        negative_patterns = [ p for p in patterns if p.startswith("!") ]
-
-        # find hosts matching positive patterns
-        hosts = self._get_hosts(positive_patterns)
-
-        # exclude hosts mentioned in a negative pattern
-        if len(negative_patterns):
-            exclude_hosts = [ h.name for h in self._get_hosts(negative_patterns) ]
-            hosts = [ h for h in hosts if h.name not in exclude_hosts ]
+        hosts = self._get_hosts(patterns)
 
         # exclude hosts not in a subset, if defined
         if self._subset:
-            positive_subsetp = [ p for p in self._subset if not p.startswith("!") ]
-            negative_subsetp = [ p for p in self._subset if p.startswith("!") ]
-            if len(positive_subsetp):
-                positive_subset = [ h.name for h in self._get_hosts(positive_subsetp) ]
-                hosts = [ h for h in hosts if (h.name in positive_subset) ]
-            if len(negative_subsetp):
-                negative_subset = [ h.name for h in self._get_hosts(negative_subsetp) ]
-                hosts = [ h for h in hosts if (h.name not in negative_subset)]
+            subset = self._get_hosts(self._subset)
+            hosts.intersection_update(subset)
 
         # exclude hosts mentioned in any restriction (ex: failed hosts)
         if self._restriction is not None:
@@ -135,27 +120,35 @@ class Inventory(object):
         return sorted(hosts, key=lambda x: x.name)
 
     def _get_hosts(self, patterns):
-        """ 
-        finds hosts that postively match a particular list of patterns.  Does not
-        take into account negative matches.
+        """
+        finds hosts that match a list of patterns. Handles negative
+        matches as well as intersection matches.
         """
 
-        by_pattern = {}
+        hosts = set()
         for p in patterns:
-            (name, enumeration_details) = self._enumeration_info(p)
-            hpat = self._hosts_in_unenumerated_pattern(name)
-            hpat = sorted(hpat, key=lambda x: x.name)
-            by_pattern[p] = hpat
+            if p.startswith("!"):
+                # Discard excluded hosts
+                hosts.difference_update(self.__get_hosts(p))
+            elif p.startswith("&"):
+                # Only leave the intersected hosts
+                hosts.intersection_update(self.__get_hosts(p))
+            else:
+                # Get all hosts from both patterns
+                hosts.update(self.__get_hosts(p))
+        return hosts
 
-        ranged = {}
-        for (pat, hosts) in by_pattern.iteritems():
-            ranged[pat] = self._apply_ranges(pat, hosts)
+    def __get_hosts(self, pattern):
+        """ 
+        finds hosts that postively match a particular pattern.  Does not
+        take into account negative matches.
+        """
 
-        results = []
-        for (pat, hosts) in ranged.iteritems():
-            results.extend(hosts)
+        (name, enumeration_details) = self._enumeration_info(pattern)
+        hpat = self._hosts_in_unenumerated_pattern(name)
+        hpat = sorted(hpat, key=lambda x: x.name)
 
-        return list(set(results))
+        return set(self._apply_ranges(pattern, hpat))
 
     def _enumeration_info(self, pattern):
         """
@@ -200,7 +193,7 @@ class Inventory(object):
 
         hosts = {}
         # ignore any negative checks here, this is handled elsewhere
-        pattern = pattern.replace("!","")
+        pattern = pattern.replace("!","").replace("&", "")
 
         groups = self.get_groups()
         for group in groups:
diff --git a/test/TestInventory.py b/test/TestInventory.py
index 5c444d9e966..1f053afd3b6 100644
--- a/test/TestInventory.py
+++ b/test/TestInventory.py
@@ -177,6 +177,13 @@ class TestInventory(unittest.TestCase):
         hosts = inventory.list_hosts("nc[2-3]:florida[1-2]")
         self.compare(hosts, expected4, sort=False)
 
+    def test_complex_intersect(self):
+        inventory = self.complex_inventory()
+        hosts = inventory.list_hosts("nc:&redundantgroup:!rtp_c")
+        self.compare(hosts, ['rtp_a'])
+        hosts = inventory.list_hosts("nc:&triangle:!tri_c")
+        self.compare(hosts, ['tri_a', 'tri_b'])
+
 
     ###################################################
     ### Inventory API tests