diff --git a/changelogs/fragments/39818-loop_control_task_vars.yaml b/changelogs/fragments/39818-loop_control_task_vars.yaml
new file mode 100644
index 0000000000..abcae68494
--- /dev/null
+++ b/changelogs/fragments/39818-loop_control_task_vars.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+  - loop_control - update template vars for loop_control fields on each loop iteration (https://github.com/ansible/ansible/pull/39818).
diff --git a/lib/ansible/executor/task_executor.py b/lib/ansible/executor/task_executor.py
index 577792eb96..d48d64c83e 100644
--- a/lib/ansible/executor/task_executor.py
+++ b/lib/ansible/executor/task_executor.py
@@ -302,6 +302,9 @@ class TaskExecutor:
             if index_var:
                 task_vars[index_var] = item_index
 
+            # Update template vars to reflect current loop iteration
+            templar.set_available_variables(task_vars)
+
             # pause between loop iterations
             if loop_pause and ran_once:
                 try: