diff --git a/awx/main/utils/ansible.py b/awx/main/utils/ansible.py
index 577aeb3fd6..ece2553151 100644
--- a/awx/main/utils/ansible.py
+++ b/awx/main/utils/ansible.py
@@ -6,7 +6,6 @@ import codecs
 import re
 import os
 import logging
-from itertools import islice
 from configparser import ConfigParser
 
 # Django
@@ -82,14 +81,20 @@ def could_be_inventory(project_path, dir_path, filename):
 
     # Filter files that do not use a character set consistent with
     # Ansible inventory mainly
+    matched = False
     try:
         # only read through first 10 lines for performance
-        with codecs.open(inventory_path, 'r', encoding='utf-8', errors='ignore') as inv_file:
-            for line in islice(inv_file, 10):
-                if not valid_inventory_re.match(line):
-                    return None
+        with open(inventory_path, encoding='utf-8', errors='ignore') as inv_file:
+            for i, line in enumerate(inv_file):
+                if i > 10:
+                    break
+                elif valid_inventory_re.match(line):
+                    matched = True
+                    break
     except IOError:
         return None
+    if not matched:
+        return None
     return inventory_rel_path