diff --git a/lib/ansible/playbook/__init__.py b/lib/ansible/playbook/__init__.py
index c572e55fdc3..88c35aca5b0 100644
--- a/lib/ansible/playbook/__init__.py
+++ b/lib/ansible/playbook/__init__.py
@@ -315,6 +315,8 @@ class PlayBook(object):
                 continue
             facts = result.get('ansible_facts', {})
             self.SETUP_CACHE[host].update(facts)
+            # extra vars need to always trump - so update  again following the facts
+            self.SETUP_CACHE[host].update(self.extra_vars)
             if task.register:
                 if 'stdout' in result:
                     result['stdout_lines'] = result['stdout'].splitlines()
@@ -390,7 +392,7 @@ class PlayBook(object):
         ''' run a list of tasks for a given pattern, in order '''
 
         self.callbacks.on_play_start(play.name)
-
+        self.SETUP_CACHE.update(play.vars)
         # if no hosts matches this play, drop out
         if not self.inventory.list_hosts(play.hosts):
             self.callbacks.on_no_hosts_matched()
diff --git a/lib/ansible/playbook/play.py b/lib/ansible/playbook/play.py
index f414ec55536..95d39323944 100644
--- a/lib/ansible/playbook/play.py
+++ b/lib/ansible/playbook/play.py
@@ -186,6 +186,9 @@ class Play(object):
         else:
             vars.update(self.vars)
 
+        if type(self.playbook.extra_vars) == dict:
+            vars.update(self.playbook.extra_vars)
+
         if type(self.vars_prompt) == list:
             for var in self.vars_prompt:
                 if not 'name' in var: