diff --git a/bin/ansible-playbook b/bin/ansible-playbook
index 91380b6fa4..2332e08567 100755
--- a/bin/ansible-playbook
+++ b/bin/ansible-playbook
@@ -122,9 +122,11 @@ def main(args):
                     print '\n'
             return 0
             
+
         try:
 
             pb.run()
+
             hosts = sorted(pb.stats.processed.keys())
             print callbacks.banner("PLAY RECAP")
             playbook_cb.on_stats(pb.stats)
diff --git a/lib/ansible/callbacks.py b/lib/ansible/callbacks.py
index 8feed2907f..4fe2523fc6 100644
--- a/lib/ansible/callbacks.py
+++ b/lib/ansible/callbacks.py
@@ -376,7 +376,7 @@ class PlaybookRunnerCallbacks(DefaultRunnerCallbacks):
         super(PlaybookRunnerCallbacks, self).on_skipped(host, item)
 
     def on_no_hosts(self):
-        print stringc("no hosts matched or remaining\n", 'red')
+        print stringc("FATAL: no hosts matched or all hosts have already failed -- aborting playbook\n", 'red')
         super(PlaybookRunnerCallbacks, self).on_no_hosts()
 
     def on_async_poll(self, host, res, jid, clock):
diff --git a/lib/ansible/playbook/__init__.py b/lib/ansible/playbook/__init__.py
index 671b7455e3..f591920468 100644
--- a/lib/ansible/playbook/__init__.py
+++ b/lib/ansible/playbook/__init__.py
@@ -181,7 +181,8 @@ class PlayBook(object):
             raise errors.AnsibleError(msg % (unknown, unmatched))
 
         for play in plays:
-            self._run_play(play)
+            if not self._run_play(play):
+                break
 
         # summarize the results
         results = {}
@@ -360,16 +361,12 @@ class PlayBook(object):
                         play_hosts.append(all_hosts.pop())
                 serialized_batch.append(play_hosts)
 
-        hosts_remaining = True
         for on_hosts in serialized_batch:
 
             self.inventory.also_restrict_to(on_hosts)
 
             for task in play.tasks():
 
-                if not hosts_remaining:
-                    continue
-
                 # only run the task if the requested tags match
                 should_run = False
                 for x in self.only_tags:
@@ -379,16 +376,15 @@ class PlayBook(object):
                             break
                 if should_run:
                     if not self._run_task(play, task, False):
-                        hosts_remaining = False
+                        return False
 
             # run notify actions
             for handler in play.handlers():
-                if not hosts_remaining:
-                    continue
                 if len(handler.notified_by) > 0:
                     self.inventory.restrict_to(handler.notified_by)
                     self._run_task(play, handler, True)
                     self.inventory.lift_restriction()
 
             self.inventory.lift_also_restriction()
+        return True