diff --git a/ironic_inspector/common/ironic.py b/ironic_inspector/common/ironic.py
index 5397aa038..6693b460d 100644
--- a/ironic_inspector/common/ironic.py
+++ b/ironic_inspector/common/ironic.py
@@ -15,13 +15,15 @@ import socket
 
 from ironicclient import client
 from ironicclient import exceptions as ironic_exc
+import netaddr
 from oslo_config import cfg
 
-from ironic_inspector.common.i18n import _
+from ironic_inspector.common.i18n import _, _LW
 from ironic_inspector.common import keystone
 from ironic_inspector import utils
 
 CONF = cfg.CONF
+LOG = utils.getProcessingLogger(__name__)
 
 # See http://specs.openstack.org/openstack/ironic-specs/specs/kilo/new-ironic-state-machine.html  # noqa
 VALID_STATES = {'enroll', 'manageable', 'inspecting', 'inspectfail'}
@@ -143,16 +145,24 @@ def get_ipmi_address(node):
         return
     for name in ipmi_fields:
         value = node.driver_info.get(name)
-        if value:
-            try:
-                ip = socket.gethostbyname(value)
-                return ip
-            except socket.gaierror:
-                msg = _('Failed to resolve the hostname (%(value)s)'
-                        ' for node %(uuid)s')
-                raise utils.Error(msg % {'value': value,
-                                         'uuid': node.uuid},
-                                  node_info=node)
+        if not value:
+            continue
+
+        try:
+            ip = socket.gethostbyname(value)
+        except socket.gaierror:
+            msg = _('Failed to resolve the hostname (%(value)s)'
+                    ' for node %(uuid)s')
+            raise utils.Error(msg % {'value': value,
+                                     'uuid': node.uuid},
+                              node_info=node)
+
+        if netaddr.IPAddress(ip).is_loopback():
+            LOG.warning(_LW('Ignoring loopback BMC address %s'), ip,
+                        node_info=node)
+            ip = None
+
+        return ip
 
 
 def get_client(token=None,
diff --git a/ironic_inspector/test/unit/test_common_ironic.py b/ironic_inspector/test/unit/test_common_ironic.py
index b7a332d0c..12c69e071 100644
--- a/ironic_inspector/test/unit/test_common_ironic.py
+++ b/ironic_inspector/test/unit/test_common_ironic.py
@@ -109,6 +109,12 @@ class TestGetIpmiAddress(base.BaseTest):
                                       'ipmi_bridging': 'single'})
         self.assertIsNone(ir_utils.get_ipmi_address(node))
 
+    def test_loopback_address(self):
+        node = mock.Mock(spec=['driver_info', 'uuid'],
+                         driver_info={'ipmi_address': '127.0.0.2'})
+        ip = ir_utils.get_ipmi_address(node)
+        self.assertIsNone(ip)
+
 
 class TestCapabilities(unittest.TestCase):
 
diff --git a/ironic_inspector/test/unit/test_introspect.py b/ironic_inspector/test/unit/test_introspect.py
index ec79e4837..4e988cc25 100644
--- a/ironic_inspector/test/unit/test_introspect.py
+++ b/ironic_inspector/test/unit/test_introspect.py
@@ -79,6 +79,33 @@ class TestIntrospect(BaseTest):
         self.node_info.acquire_lock.assert_called_once_with()
         self.node_info.release_lock.assert_called_once_with()
 
+    def test_loopback_bmc_address(self, client_mock, start_mock, filters_mock):
+        self.node.driver_info['ipmi_address'] = '127.0.0.1'
+        cli = self._prepare(client_mock)
+        start_mock.return_value = self.node_info
+
+        introspect.introspect(self.node.uuid)
+
+        cli.node.get.assert_called_once_with(self.uuid)
+        cli.node.validate.assert_called_once_with(self.uuid)
+
+        start_mock.assert_called_once_with(self.uuid,
+                                           bmc_address=None,
+                                           ironic=cli)
+        self.node_info.ports.assert_called_once_with()
+        self.node_info.add_attribute.assert_called_once_with('mac',
+                                                             self.macs)
+        filters_mock.assert_called_with(cli)
+        cli.node.set_boot_device.assert_called_once_with(self.uuid,
+                                                         'pxe',
+                                                         persistent=False)
+        cli.node.set_power_state.assert_called_once_with(self.uuid,
+                                                         'reboot')
+        self.node_info.set_option.assert_called_once_with(
+            'new_ipmi_credentials', None)
+        self.node_info.acquire_lock.assert_called_once_with()
+        self.node_info.release_lock.assert_called_once_with()
+
     def test_ok_ilo_and_drac(self, client_mock, start_mock, filters_mock):
         cli = self._prepare(client_mock)
         start_mock.return_value = self.node_info
diff --git a/releasenotes/notes/loopback-bmc-e60d64fe74bdf142.yaml b/releasenotes/notes/loopback-bmc-e60d64fe74bdf142.yaml
new file mode 100644
index 000000000..472756cfe
--- /dev/null
+++ b/releasenotes/notes/loopback-bmc-e60d64fe74bdf142.yaml
@@ -0,0 +1,5 @@
+---
+fixes:
+  - |
+    Loopback BMC addresses (useful e.g. with virtualbmc) are no longer used
+    for lookup.