@@ -175,9 +175,16 @@ class Inventory(object):

             if all not in mygroups:

                 all.add_host(host)

-            # clear ungrouped of any incorrectly stored by parser

-            if len(mygroups) > 2 and ungrouped in mygroups:

-                host.remove_group(ungrouped)

+            if ungrouped in mygroups:

+                # clear ungrouped of any incorrectly stored by parser

+                if set(mygroups).difference(set([all, ungrouped])):

+                    host.remove_group(ungrouped)

+            else:

+                # add ungrouped hosts to ungrouped

+                length = len(mygroups)

+                if length == 0 or (length == 1 and all in mygroups):

+                    ungrouped.add_host(host)

+

     def _match(self, str, pattern_str):

         try: