diff --git a/lib/ansible/executor/playbook_executor.py b/lib/ansible/executor/playbook_executor.py
index b35333789b5..81c36d88ae8 100644
--- a/lib/ansible/executor/playbook_executor.py
+++ b/lib/ansible/executor/playbook_executor.py
@@ -83,6 +83,9 @@ class PlaybookExecutor:
                 self._display.vv('%d plays in %s' % (len(plays), playbook_path))
 
                 for play in plays:
+                    if play._included_path is not None:
+                        self._loader.set_basedir(play._included_path)
+
                     # clear any filters which may have been applied to the inventory
                     self._inventory.remove_restriction()
 
diff --git a/lib/ansible/playbook/play.py b/lib/ansible/playbook/play.py
index 55f994f305e..9d1959c1e58 100644
--- a/lib/ansible/playbook/play.py
+++ b/lib/ansible/playbook/play.py
@@ -95,6 +95,7 @@ class Play(Base, Taggable, Become):
     def __init__(self):
         super(Play, self).__init__()
 
+        self._included_path = None
         self.ROLE_CACHE = {}
 
     def __repr__(self):
@@ -321,12 +322,14 @@ class Play(Base, Taggable, Become):
         for role in self.get_roles():
             roles.append(role.serialize())
         data['roles'] = roles
+        data['included_path'] = self._included_path
 
         return data
 
     def deserialize(self, data):
         super(Play, self).deserialize(data)
 
+        self._included_path = data.get('included_path', None)
         if 'roles' in data:
             role_data = data.get('roles', [])
             roles = []
@@ -341,5 +344,6 @@ class Play(Base, Taggable, Become):
     def copy(self):
         new_me = super(Play, self).copy()
         new_me.ROLE_CACHE = self.ROLE_CACHE.copy()
+        new_me._included_path = self._included_path
         return new_me
 
diff --git a/lib/ansible/playbook/playbook_include.py b/lib/ansible/playbook/playbook_include.py
index 247cd3f5171..05a3dcb3a1d 100644
--- a/lib/ansible/playbook/playbook_include.py
+++ b/lib/ansible/playbook/playbook_include.py
@@ -80,6 +80,8 @@ class PlaybookInclude(Base, Conditional, Taggable):
             temp_vars.update(new_obj.vars)
             entry.vars = temp_vars
             entry.tags = list(set(entry.tags).union(new_obj.tags))
+            if entry._included_path is None:
+                entry._included_path = os.path.dirname(file_name)
 
         return pb