diff --git a/changelogs/fragments/fix_no_log_loop.yml b/changelogs/fragments/fix_no_log_loop.yml
new file mode 100644
index 00000000000..5db08ab2a05
--- /dev/null
+++ b/changelogs/fragments/fix_no_log_loop.yml
@@ -0,0 +1,2 @@
+bugfixes:
+    - always correctly template no log for tasks https://github.com/ansible/ansible/issues/43294
diff --git a/lib/ansible/executor/task_executor.py b/lib/ansible/executor/task_executor.py
index 8300f20de48..0dce8d5008f 100644
--- a/lib/ansible/executor/task_executor.py
+++ b/lib/ansible/executor/task_executor.py
@@ -170,9 +170,10 @@ class TaskExecutor:
             display.debug("done dumping result, returning")
             return res
         except AnsibleError as e:
-            return dict(failed=True, msg=wrap_var(to_text(e, nonstring='simplerepr')))
+            return dict(failed=True, msg=wrap_var(to_text(e, nonstring='simplerepr')), _ansible_no_log=self._play_context.no_log)
         except Exception as e:
-            return dict(failed=True, msg='Unexpected failure during module execution.', exception=to_text(traceback.format_exc()), stdout='')
+            return dict(failed=True, msg='Unexpected failure during module execution.', exception=to_text(traceback.format_exc()),
+                        stdout='', _ansible_no_log=self._play_context.no_log)
         finally:
             try:
                 self._connection.close()
@@ -302,6 +303,7 @@ class TaskExecutor:
             # Only squash with 'with_:' not with the 'loop:', 'magic' squashing can be removed once with_ loops are
             items = self._squash_items(items, loop_var, task_vars)
 
+        no_log = False
         for item_index, item in enumerate(items):
             task_vars[loop_var] = item
             if index_var:
@@ -336,6 +338,9 @@ class TaskExecutor:
             (self._task, tmp_task) = (tmp_task, self._task)
             (self._play_context, tmp_play_context) = (tmp_play_context, self._play_context)
 
+            # update 'general no_log' based on specific no_log
+            no_log = no_log or tmp_task.no_log
+
             # now update the result with the item info, and append the result
             # to the list of results
             res[loop_var] = item
@@ -359,6 +364,8 @@ class TaskExecutor:
             results.append(res)
             del task_vars[loop_var]
 
+        self._task.no_log = no_log
+
         return results
 
     def _squash_items(self, items, loop_var, variables):
diff --git a/lib/ansible/executor/task_result.py b/lib/ansible/executor/task_result.py
index 6609e066989..6030c3a83fa 100644
--- a/lib/ansible/executor/task_result.py
+++ b/lib/ansible/executor/task_result.py
@@ -110,7 +110,7 @@ class TaskResult:
         else:
             ignore = _IGNORE
 
-        if self._task.no_log or self._result.get('_ansible_no_log', False):
+        if isinstance(self._task.no_log, bool) and self._task.no_log or self._result.get('_ansible_no_log', False):
             x = {"censored": "the output has been hidden due to the fact that 'no_log: true' was specified for this result"}
             for preserve in _PRESERVE:
                 if preserve in self._result:
diff --git a/test/integration/targets/no_log/dynamic.yml b/test/integration/targets/no_log/dynamic.yml
new file mode 100644
index 00000000000..4a1123d5749
--- /dev/null
+++ b/test/integration/targets/no_log/dynamic.yml
@@ -0,0 +1,27 @@
+- name: test dynamic no log
+  hosts: testhost
+  gather_facts: no
+  ignore_errors: yes
+  tasks:
+    - name: no loop, task fails, dynamic no_log
+      debug:
+        msg: "SHOW {{ var_does_not_exist }}"
+      no_log: "{{ not (unsafe_show_logs|bool) }}"
+
+    - name: loop, task succeeds, dynamic does no_log
+      debug:
+        msg: "SHOW {{ item }}"
+      loop:
+        - a
+        - b
+        - c
+      no_log: "{{ not (unsafe_show_logs|bool) }}"
+
+    - name: loop, task fails, dynamic no_log
+      debug:
+        msg: "SHOW {{ var_does_not_exist }}"
+      loop:
+        - a
+        - b
+        - c
+      no_log: "{{ not (unsafe_show_logs|bool) }}"
diff --git a/test/integration/targets/no_log/runme.sh b/test/integration/targets/no_log/runme.sh
index e20bb08c4f0..474e755e13d 100755
--- a/test/integration/targets/no_log/runme.sh
+++ b/test/integration/targets/no_log/runme.sh
@@ -4,6 +4,12 @@ set -eux
 
 # This test expects 7 loggable vars and 0 non-loggable ones.
 # If either mismatches it fails, run the ansible-playbook command to debug.
-
 [ "$(ansible-playbook no_log_local.yml -i ../../inventory -vvvvv "$@" | awk \
 'BEGIN { logme = 0; nolog = 0; } /LOG_ME/ { logme += 1;} /DO_NOT_LOG/ { nolog += 1;} END { printf "%d/%d", logme, nolog; }')" = "26/0" ]
+
+# deal with corner cases with no log and loops
+# no log enabled, should produce 6 censored messages
+[ "$(ansible-playbook dynamic.yml -i ../../inventory -vvvvv "$@" -e unsafe_show_logs=no|grep -c 'output has been hidden')" = "6" ]
+
+# no log disabled, should produce 0 censored
+[ "$(ansible-playbook dynamic.yml -i ../../inventory -vvvvv "$@" -e unsafe_show_logs=yes|grep -c 'output has been hidden')" = "0" ]