diff --git a/ansible/roles/etc-hosts/defaults/main.yml b/ansible/roles/etc-hosts/defaults/main.yml
index 56ea4b372..abc8435f6 100644
--- a/ansible/roles/etc-hosts/defaults/main.yml
+++ b/ansible/roles/etc-hosts/defaults/main.yml
@@ -3,4 +3,4 @@
 customize_etc_hosts: true
 
 # List of hosts to add to /etc/hosts.
-etc_hosts_hosts: "{{ ansible_play_hosts_all }}"
+etc_hosts_hosts: "{{ groups['overcloud'] }}"
diff --git a/ansible/roles/gather-facts-delegated/defaults/main.yml b/ansible/roles/gather-facts-delegated/defaults/main.yml
index 0f380d934..ad6fe6444 100644
--- a/ansible/roles/gather-facts-delegated/defaults/main.yml
+++ b/ansible/roles/gather-facts-delegated/defaults/main.yml
@@ -1,8 +1,8 @@
 ---
-gather_facts_delegated_limit_hosts: "{{ ansible_play_hosts_all }}"
-gather_facts_delegated_batch_index: "{{ gather_facts_delegated_limit_hosts.index(inventory_hostname) }}"
-gather_facts_delegated_batch_size: "{{ gather_facts_delegated_limit_hosts | length }}"
+gather_facts_delegated_limit_hosts: "{{ groups['overcloud'] }}"
+gather_facts_delegated_batch_index: "{{ ansible_play_batch.index(inventory_hostname) }}"
+gather_facts_delegated_batch_count: "{{ ansible_play_batch | length }}"
 # Use a python list slice to divide the group up.
 # Syntax: [<start index>:<end index>:<step size>]
 gather_facts_delegated_delegate_hosts: >-
-  {{ gather_facts_delegated_limit_hosts[gather_facts_delegated_batch_index | int::gather_facts_delegated_batch_size | int] }}
+  {{ gather_facts_delegated_limit_hosts[gather_facts_delegated_batch_index | int::gather_facts_delegated_batch_count | int] }}
diff --git a/ansible/roles/gather-facts-delegated/tasks/gather-facts-delegated.yml b/ansible/roles/gather-facts-delegated/tasks/gather-facts-delegated.yml
new file mode 100644
index 000000000..265d6d5d2
--- /dev/null
+++ b/ansible/roles/gather-facts-delegated/tasks/gather-facts-delegated.yml
@@ -0,0 +1,12 @@
+---
+- name: Gather facts for delegated host
+  any_errors_fatal: true
+  setup:
+    filter: "{{ kayobe_ansible_setup_filter }}"
+    gather_subset: "{{ kayobe_ansible_setup_gather_subset }}"
+  delegate_facts: True
+  delegate_to: "{{ delegated_host }}"
+  # NOTE: Without this, the host's ansible_host variable will not be respected
+  # when using delegate_to.
+  vars:
+    ansible_host: "{{ hostvars[delegated_host].ansible_host | default(delegated_host) }}"
diff --git a/ansible/roles/gather-facts-delegated/tasks/main.yml b/ansible/roles/gather-facts-delegated/tasks/main.yml
index 820916266..2f4ee298a 100644
--- a/ansible/roles/gather-facts-delegated/tasks/main.yml
+++ b/ansible/roles/gather-facts-delegated/tasks/main.yml
@@ -1,10 +1,10 @@
 ---
 - name: Gather facts for all hosts (if using --limit)
-  setup:
-    filter: "{{ kayobe_ansible_setup_filter }}"
-    gather_subset: "{{ kayobe_ansible_setup_gather_subset }}"
-  delegate_facts: True
-  delegate_to: "{{ item }}"
-  with_items: "{{ gather_facts_delegated_delegate_hosts }}"
+  include_tasks: gather-facts-delegated.yml
+  vars:
+    delegated_host: "{{ gather_facts_delegated_delegate_hosts[item | int] }}"
+  # Loop over the index into each host's batch, so tasks are not all included serially.
+  with_sequence: start=0 end="{{ gather_facts_delegated_delegate_hosts | length | int - 1 }}"
   when:
-    - not hostvars[item].ansible_facts
+    - item | int < gather_facts_delegated_delegate_hosts | length
+    - not hostvars[gather_facts_delegated_delegate_hosts[item | int]].ansible_facts
diff --git a/releasenotes/notes/fix-etc-hosts-management-6b33748ab37d6273.yaml b/releasenotes/notes/fix-etc-hosts-management-6b33748ab37d6273.yaml
new file mode 100644
index 000000000..73102df71
--- /dev/null
+++ b/releasenotes/notes/fix-etc-hosts-management-6b33748ab37d6273.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes the bug where /etc/hosts was not populated correctly when running
+    Kayobe using a host limit.
+    `LP#2051714 <https://launchpad.net/bugs/2051714>`__