diff --git a/lib/ansible/inventory_parser_yaml.py b/lib/ansible/inventory_parser_yaml.py
index 0a8c282b018..bdf69b17c37 100644
--- a/lib/ansible/inventory_parser_yaml.py
+++ b/lib/ansible/inventory_parser_yaml.py
@@ -63,7 +63,12 @@ class InventoryParserYaml(object):
 
             elif type(item) == dict and 'host' in item:
                 host = self._make_host(item['host'])
-                for (k,v) in item.get('vars',{}).items():
+                vars = item.get('vars', {})
+                if type(vars)==list:
+                    varlist, vars = vars, {}
+                    for subitem in varlist:
+                        vars.update(subitem)
+                for (k,v) in vars.items():
                    host.set_variable(k,v)
 
             elif type(item) == dict and 'group' in item:
diff --git a/test/TestInventory.py b/test/TestInventory.py
index 2a8930277c7..fa8568028b1 100644
--- a/test/TestInventory.py
+++ b/test/TestInventory.py
@@ -258,6 +258,14 @@ class TestInventory(unittest.TestCase):
                         'hammer':True,
                         'inventory_hostname': 'thor'}
 
+    def test_yaml_list_vars(self):
+        inventory = self.yaml_inventory()
+        vars = inventory.get_variables('zeus')
+        assert vars == {'ansible_ssh_port': 3001,
+                        'group_names': ['greek', 'ruler'],
+                        'inventory_hostname': 'zeus',
+                        'ntp_server': 'olympus.example.com'}
+
     def test_yaml_change_vars(self):
         inventory = self.yaml_inventory()
         vars = inventory.get_variables('thor')
diff --git a/test/yaml_hosts b/test/yaml_hosts
index 8d98d5133e4..6f9af623620 100644
--- a/test/yaml_hosts
+++ b/test/yaml_hosts
@@ -6,7 +6,9 @@
     moon: titan
     moon2: enceladus
 
-- zeus
+- host: zeus
+  vars:
+  - ansible_ssh_port: 3001
 
 - group: greek
   hosts: