diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index a263f9ed61..f6eaed39d6 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -938,7 +938,8 @@ class RunInventoryUpdate(BaseTask):
                                   username=credential.username,
                                   password=decrypt_field(credential, "password"),
                                   project_name=credential.project)
-            openstack_data = {"clouds": {"devstack": {"auth": openstack_auth}}}
+            private_state = str(inventory_update.source_vars_dict.get("private", "true"))
+            openstack_data = {"clouds": {"devstack": {"private": private_state, "auth": openstack_auth}}}
             return yaml.safe_dump(openstack_data, default_flow_style=False, allow_unicode=True)
 
         cp = ConfigParser.ConfigParser()
diff --git a/awx/main/tests/inventory.py b/awx/main/tests/inventory.py
index a24ac68859..ef35c407ae 100644
--- a/awx/main/tests/inventory.py
+++ b/awx/main/tests/inventory.py
@@ -1898,3 +1898,19 @@ class InventoryUpdatesTest(BaseTransactionTest):
         other_inv_src_opts = {'source': 'custom', 'source_script': script_data['id']}
         with self.current_user(self.super_django_user):
             self.put(other_inv_src, other_inv_src_opts, expect=400)
+
+    def test_update_from_openstack(self):
+        api_url = getattr(settings, 'TEST_OPENSTACK_HOST', '')
+        api_user = getattr(settings, 'TEST_OPENSTACK_USER', '')
+        api_password = getattr(settings, 'TEST_OPENSTACK_PASSWORD', '')
+        api_project = getattr(settings, 'TEST_OPENSTACK_PROJECT', '')
+        if not all([api_url, api_user, api_password, api_project]):
+            self.skipTest("No test openstack credentials defined")
+        self.create_test_license_file()
+        credential = Credential.objects.create(kind='openstack',
+                                               host=api_url,
+                                               username=api_user,
+                                               password=api_password,
+                                               project=api_project)
+        inventory_source = self.update_inventory_source(self.group, source='openstack', credential=credential)
+        self.check_inventory_source(inventory_source)
diff --git a/awx/plugins/inventory/openstack.py b/awx/plugins/inventory/openstack.py
index 54309007b6..b3cfc54444 100755
--- a/awx/plugins/inventory/openstack.py
+++ b/awx/plugins/inventory/openstack.py
@@ -56,7 +56,7 @@ class OpenStackInventory(object):
         self.openstack_config = os_client_config.config.OpenStackConfig(
             config_files)
         self.clouds = shade.openstack_clouds(self.openstack_config)
-        self.refresh = refresh
+        self.refresh = True
 
         self.cache_max_age = self.openstack_config.get_cache_max_age()
         cache_path = self.openstack_config.get_cache_path()
@@ -101,9 +101,9 @@ class OpenStackInventory(object):
                     continue
 
                 server_vars = meta['server_vars']
-                hostvars[server.name][
-                    'ansible_ssh_host'] = server_vars['interface_ip']
+                hostvars[server.name]['ansible_ssh_host'] = server_vars['interface_ip']
                 hostvars[server.name]['openstack'] = server_vars
+                hostvars[server.name]['hostId'] = server_vars['hostId']
 
                 for group in meta['groups']:
                     groups[group].append(server.name)
diff --git a/awx/settings/defaults.py b/awx/settings/defaults.py
index 1d85ecac19..016b662885 100644
--- a/awx/settings/defaults.py
+++ b/awx/settings/defaults.py
@@ -531,7 +531,7 @@ OPENSTACK_ENABLED_VALUE = 'ACTIVE'
 OPENSTACK_GROUP_FILTER = r'^.+$'
 OPENSTACK_HOST_FILTER = r'^.+$'
 OPENSTACK_EXCLUDE_EMPTY_GROUPS = True
-OPENSTACK_INSTANCE_ID_VAR = None
+OPENSTACK_INSTANCE_ID_VAR = "hostId"
 
 # ---------------------
 # -- Activity Stream --