diff --git a/awx/api/views.py b/awx/api/views.py
index 20a6681d36..fdce0b9f3b 100644
--- a/awx/api/views.py
+++ b/awx/api/views.py
@@ -282,10 +282,16 @@ class DashboardView(APIView):
 
         user_hosts = get_user_queryset(request.user, Host)
         user_hosts_failed = user_hosts.filter(has_active_failures=True)
+        try:
+            user_hosts_count = user_hosts.distinct('name').count()
+            user_hosts_failed_count = user_hosts_failed.distinct('name').count()
+        except NotImplementedError: # For unit tests only, SQLite doesn't support distinct('name')
+            user_hosts_count = len(set(user_hosts.values_list('name', flat=True)))
+            user_hosts_failed_count = len(set(user_hosts_failed.values_list('name', flat=True)))
         data['hosts'] = {'url': reverse('api:host_list'),
                          'failures_url': reverse('api:host_list') + "?has_active_failures=True",
-                         'total': user_hosts.count(),
-                         'failed': user_hosts_failed.count()}
+                         'total': user_hosts_count,
+                         'failed': user_hosts_failed_count}
 
         user_projects = get_user_queryset(request.user, Project)
         user_projects_failed = user_projects.filter(last_job_failed=True)
diff --git a/awx/main/tests/inventory.py b/awx/main/tests/inventory.py
index 62741c1678..8771501062 100644
--- a/awx/main/tests/inventory.py
+++ b/awx/main/tests/inventory.py
@@ -1089,6 +1089,45 @@ class InventoryTest(BaseTest):
         self.assertEqual(set(h_e.all_groups.values_list('pk', flat=True)),
                          set([g_e.pk]))
 
+    def test_dashboard_hosts_count(self):
+        url = reverse('api:dashboard_view')
+
+        # Test with zero hosts.
+        with self.current_user(self.super_django_user):
+            response = self.get(url, expect=200)
+        self.assertEqual(response['hosts']['total'], 0)
+        self.assertEqual(response['hosts']['failed'], 0)
+
+        # Create hosts with the same name in different inventories.
+        for x in xrange(4):
+            hostname = 'host-%d' % x
+            self.inventory_a.hosts.create(name=hostname)
+            self.inventory_b.hosts.create(name=hostname)
+        with self.current_user(self.super_django_user):
+            response = self.get(url, expect=200)
+        self.assertEqual(response['hosts']['total'], 4)
+        self.assertEqual(response['hosts']['failed'], 0)
+
+        # Mark all hosts in one inventory as failed.  Failed count should
+        # reflect unique hostnames.
+        for host in self.inventory_a.hosts.all():
+            host.has_active_failures = True
+            host.save()
+        with self.current_user(self.super_django_user):
+            response = self.get(url, expect=200)
+        self.assertEqual(response['hosts']['total'], 4)
+        self.assertEqual(response['hosts']['failed'], 4)
+
+        # Mark all hosts in the other inventory as failed.  Failed count
+        # should reflect unique hostnames and never be greater than total.
+        for host in self.inventory_b.hosts.all():
+            host.has_active_failures = True
+            host.save()
+        with self.current_user(self.super_django_user):
+            response = self.get(url, expect=200)
+        self.assertEqual(response['hosts']['total'], 4)
+        self.assertEqual(response['hosts']['failed'], 4)
+
     def test_dashboard_inventory_graph_view(self):
         url = reverse('api:dashboard_inventory_graph_view')
         # Test with zero hosts.