diff --git a/awx/ui/static/js/forms/Source.js b/awx/ui/static/js/forms/Source.js
index dcbf0e7e02..121b2eb0c6 100644
--- a/awx/ui/static/js/forms/Source.js
+++ b/awx/ui/static/js/forms/Source.js
@@ -125,7 +125,7 @@ angular.module('SourceFormDefinition', [])
                 rows: 6,
                 'default': '---',
                 parseTypeName: 'envParseType',
-                dataTitle: "Environment Variables",   //'<p ng-show=source.value=="ec2">Source Variables<p>',
+                dataTitle: "Environment Variables",
                 dataPlacement: 'right',
                 awPopOver:  "<p>Provide key/value pairs using either YAML or JSON.</p>" +
                     "JSON:<br />\n" +
@@ -157,6 +157,29 @@ angular.module('SourceFormDefinition', [])
                     '<p>View YAML examples at <a href="http://docs.ansible.com/YAMLSyntax.html" target="_blank">docs.ansible.com</a></p>',
                 dataContainer: 'body'
             },
+            inventory_variables: {
+                label: 'Source Variables', //"{{vars_label}}" ,
+                ngShow: "source && (source.value == 'vmware')",
+                type: 'textarea',
+                addRequired: false,
+                editRequird: false,
+                rows: 6,
+                'default': '---',
+                parseTypeName: 'envParseType',
+                dataTitle: "Source Variables",
+                dataPlacement: 'right',
+                awPopOver: "<p>Override variables found in vmware.ini and used by the inventory update script. For a detailed description of these variables " +
+                    "<a href=\"https://github.com/ansible/ansible/blob/devel/plugins/inventory/vmware.ini\" target=\"_blank\">" +
+                    "view ec2.ini in the Ansible github repo.</a></p>" +
+                    "<p>Enter variables using either JSON or YAML syntax. Use the radio button to toggle between the two.</p>" +
+                    "JSON:<br />\n" +
+                    "<blockquote>{<br />\"somevar\": \"somevalue\",<br />\"password\": \"magic\"<br /> }</blockquote>\n" +
+                    "YAML:<br />\n" +
+                    "<blockquote>---<br />somevar: somevalue<br />password: magic<br /></blockquote>\n" +
+                    '<p>View JSON examples at <a href="http://www.json.org" target="_blank">www.json.org</a></p>' +
+                    '<p>View YAML examples at <a href="http://docs.ansible.com/YAMLSyntax.html" target="_blank">docs.ansible.com</a></p>',
+                dataContainer: 'body'
+            },
             checkbox_group: {
                 label: 'Update Options',
                 type: 'checkbox_group',
diff --git a/awx/ui/static/js/helpers/Groups.js b/awx/ui/static/js/helpers/Groups.js
index 30ce61485c..94de7f17c7 100644
--- a/awx/ui/static/js/helpers/Groups.js
+++ b/awx/ui/static/js/helpers/Groups.js
@@ -273,6 +273,7 @@ angular.module('GroupsHelper', [ 'RestServices', 'Utilities', 'ListGenerator', '
                     ParseTypeChange({ scope: scope, variable: 'extra_vars', parse_variable: form.fields.extra_vars.parseTypeName,
                         field_id: 'source_extra_vars', onReady: callback });
                 }
+
                 if (scope.source.value === 'rax' || scope.source.value === 'ec2'|| scope.source.value==='gce' || scope.source.value === 'azure' || scope.source.value === 'vmware') {
                     kind = (scope.source.value === 'rax') ? 'rax' : (scope.source.value==='gce') ? 'gce' : (scope.source.value==='azure') ? 'azure' : (scope.source.value === 'vmware') ? 'vmware' : 'aws' ;
                     url = GetBasePath('credentials') + '?cloud=true&kind=' + kind;
@@ -284,13 +285,20 @@ angular.module('GroupsHelper', [ 'RestServices', 'Utilities', 'ListGenerator', '
                         field: 'credential',
                         input_type: "radio"
                     });
-                    if ($('#group_tabs .active a').text() === 'Source' && (scope.source.value === 'ec2' || scope.source.value === 'custom')) {
+                    if ($('#group_tabs .active a').text() === 'Source' && (scope.source.value === 'ec2' )) {
                         callback = function(){ Wait('stop'); };
                         Wait('start');
                         scope.source_vars = (Empty(scope.source_vars)) ? "---" : scope.source_vars;
                         ParseTypeChange({ scope: scope, variable: 'source_vars', parse_variable: form.fields.source_vars.parseTypeName,
                             field_id: 'source_source_vars', onReady: callback });
                     }
+                    if ($('#group_tabs .active a').text() === 'Source' && (scope.source.value === 'vmware' )) {
+                        callback = function(){ Wait('stop'); };
+                        Wait('start');
+                        scope.inventory_variables = (Empty(scope.source_vars)) ? "---" : scope.source_vars;
+                        ParseTypeChange({ scope: scope, variable: 'inventory_variables', parse_variable: form.fields.inventory_variables.parseTypeName,
+                            field_id: 'source_inventory_variables', onReady: callback });
+                    }
                 }
             }
         };
@@ -850,6 +858,10 @@ function($compile, SchedulerInit, Rest, Wait, SetSchedulesInnerDialogSize, Sched
                         Wait('start');
                         ParseTypeChange({ scope: sources_scope, variable: 'source_vars', parse_variable: SourceForm.fields.source_vars.parseTypeName,
                             field_id: 'source_source_vars', onReady: waitStop });
+                    } else if (sources_scope.source && (sources_scope.source.value === 'vmware')) {
+                        Wait('start');
+                        ParseTypeChange({ scope: sources_scope, variable: 'inventory_variables', parse_variable: SourceForm.fields.inventory_variables.parseTypeName,
+                            field_id: 'source_inventory_variables', onReady: waitStop });
                     }
                     else if (sources_scope.source && (sources_scope.source.value === 'custom')) {
                         Wait('start');
@@ -1206,7 +1218,7 @@ function($compile, SchedulerInit, Rest, Wait, SetSchedulesInnerDialogSize, Sched
                     data.group_by = r.join();
                 }
 
-                if (sources_scope.source && (sources_scope.source.value === 'ec2' || sources_scope.source.value === 'custom')) {
+                if (sources_scope.source && (sources_scope.source.value === 'ec2' )) {
                     // for ec2, validate variable data
                     data.source_vars = ToJSON(sources_scope.envParseType, sources_scope.source_vars, true);
                 }
@@ -1215,6 +1227,11 @@ function($compile, SchedulerInit, Rest, Wait, SetSchedulesInnerDialogSize, Sched
                     data.source_vars = ToJSON(sources_scope.envParseType, sources_scope.extra_vars, true);
                 }
 
+                if (sources_scope.source && (sources_scope.source.value === 'vmware')) {
+                    data.source_vars = ToJSON(sources_scope.envParseType, sources_scope.inventory_variables, true);
+                }
+
+                // the API doesn't expect the credential to be passed with a custom inv script
                 if(sources_scope.source.value === 'custom'){
                     delete(data.credential);
                 }