diff --git a/changelogs/fragments/67429-jinja2-caching.yml b/changelogs/fragments/67429-jinja2-caching.yml
new file mode 100644
index 00000000000..cd081050855
--- /dev/null
+++ b/changelogs/fragments/67429-jinja2-caching.yml
@@ -0,0 +1,2 @@
+bugfixes:
+- "Templating - Ansible was caching results of Jinja2 expressions in some cases where these expressions could have dynamic results, like password generation (https://github.com/ansible/ansible/issues/34144)."
diff --git a/lib/ansible/template/__init__.py b/lib/ansible/template/__init__.py
index d3c57276f0b..54b84b670eb 100644
--- a/lib/ansible/template/__init__.py
+++ b/lib/ansible/template/__init__.py
@@ -596,7 +596,7 @@ class Templar:
                         # we only cache in the case where we have a single variable
                         # name, to make sure we're not putting things which may otherwise
                         # be dynamic in the cache (filters, lookups, etc.)
-                        if cache:
+                        if cache and only_one:
                             self._cached_result[sha1_hash] = result
 
                 return result