diff --git a/lib/ansible/plugins/inventory/openstack.py b/lib/ansible/plugins/inventory/openstack.py
index 74fb68ee24c..9c9a1e03001 100644
--- a/lib/ansible/plugins/inventory/openstack.py
+++ b/lib/ansible/plugins/inventory/openstack.py
@@ -240,7 +240,7 @@ class InventoryModule(BaseInventoryPlugin, Constructable, Cacheable):
 
             # create composite vars
             self._set_composite_vars(
-                self._config_data.get('compose'), hostvars, host)
+                self._config_data.get('compose'), hostvars[host], host)
 
             # actually update inventory
             for key in hostvars[host]:
@@ -248,7 +248,11 @@ class InventoryModule(BaseInventoryPlugin, Constructable, Cacheable):
 
             # constructed groups based on conditionals
             self._add_host_to_composed_groups(
-                self._config_data.get('groups'), hostvars, host)
+                self._config_data.get('groups'), hostvars[host], host)
+
+            # constructed groups based on jinja expressions
+            self._add_host_to_keyed_groups(
+                self._config_data.get('keyed_groups'), hostvars[host], host)
 
         for group_name, group_hosts in groups.items():
             self.inventory.add_group(group_name)
diff --git a/test/units/plugins/inventory/test_openstack.py b/test/units/plugins/inventory/test_openstack.py
index a9cbaba0849..fec7ae580c4 100644
--- a/test/units/plugins/inventory/test_openstack.py
+++ b/test/units/plugins/inventory/test_openstack.py
@@ -68,7 +68,7 @@ def inventory():
     return inventory
 
 
-def test_simpel_groups(inventory):
+def test_simple_groups(inventory):
     inventory._set_variables(hostvars, {})
     groups = inventory.inventory.get_groups_dict()
     assert 'testgroup' in groups