diff --git a/awx/api/views.py b/awx/api/views.py
index 2fa583ec33..40bff1d400 100644
--- a/awx/api/views.py
+++ b/awx/api/views.py
@@ -1070,8 +1070,15 @@ class InventoryScriptView(RetrieveAPIView):
         else:
             data = SortedDict()
             if self.object.variables_dict:
-                data['all'] = SortedDict()
-                data['all']['vars'] = self.object.variables_dict
+                all_group = data.setdefault('all', SortedDict())
+                all_group['vars'] = self.object.variables_dict
+
+            # Add hosts without a group to the all group.
+            groupless_hosts_qs = self.object.hosts.filter(groups__isnull=True, **hosts_q).order_by('name')
+            groupless_hosts = list(groupless_hosts_qs.values_list('name', flat=True))
+            if groupless_hosts:
+                all_group = data.setdefault('all', SortedDict())
+                all_group['hosts'] = groupless_hosts
 
             # Build in-memory mapping of groups and their hosts.
             group_hosts_kw = dict(group__inventory_id=self.object.id, group__active=True,
@@ -1120,8 +1127,10 @@ class InventoryScriptView(RetrieveAPIView):
                                                      **hosts_q)
             localhosts = list(localhosts_qs.values_list('name', flat=True))
             if localhosts:
-                data.setdefault('all', SortedDict())
-                data['all']['hosts'] = localhosts
+                all_group = data.setdefault('all', SortedDict())
+                all_group_hosts = all_group.get('hosts', [])
+                all_group_hosts.extend(localhosts)
+                all_group['hosts'] = sorted(set(all_group_hosts))
 
         return Response(data)
 
diff --git a/awx/main/tests/inventory.py b/awx/main/tests/inventory.py
index ef4826cf1e..d71278ea13 100644
--- a/awx/main/tests/inventory.py
+++ b/awx/main/tests/inventory.py
@@ -797,13 +797,16 @@ class InventoryTest(BaseTest):
         h_c.groups.add(g_c)
         h_d = i_a.hosts.create(name='d', variables=json.dumps({'d-vars': 'ddd'}))
         h_d.groups.add(g_d)
-        
+        # Add another host not in any groups.
+        h_z = i_a.hosts.create(name='z', variables=json.dumps({'z-vars': 'zzz'}))
+
         # Old, slow 1.2 way.
         url = reverse('api:inventory_script_view', args=(i_a.pk,))
         with self.current_user(self.super_django_user):
             response = self.get(url, expect=200)
         self.assertTrue('all' in response)
         self.assertEqual(response['all']['vars'], i_a.variables_dict)
+        self.assertEqual(response['all']['hosts'], ['z'])
         for g in i_a.groups.all():
             self.assertTrue(g.name in response)
             self.assertEqual(response[g.name]['vars'], g.variables_dict)
@@ -818,11 +821,17 @@ class InventoryTest(BaseTest):
                 response = self.get(h_url, expect=200)
             self.assertEqual(response, h.variables_dict)
 
+        # Now add localhost to the inventory.
+        h_l = i_a.hosts.create(name='localhost', variables=json.dumps({'ansible_connection': 'local'}))
+
         # New 1.3 way.
         url = reverse('api:inventory_script_view', args=(i_a.pk,))
         url = '%s?hostvars=1' % url
         with self.current_user(self.super_django_user):
             response = self.get(url, expect=200)
+        self.assertTrue('all' in response)
+        self.assertEqual(response['all']['vars'], i_a.variables_dict)
+        self.assertEqual(response['all']['hosts'], ['localhost', 'z'])
         self.assertTrue('_meta' in response)
         self.assertTrue('hostvars' in response['_meta'])
         for h in i_a.hosts.all():