diff --git a/kayobe/ansible.py b/kayobe/ansible.py
index db081ffbf..ac3305816 100644
--- a/kayobe/ansible.py
+++ b/kayobe/ansible.py
@@ -150,6 +150,13 @@ def build_args(parsed_args, playbooks,
     return cmd
 
 
+def _read_vault_password_file(vault_password_file):
+    """Return the password from a vault password file."""
+    vault_password = utils.read_file(vault_password_file)
+    vault_password = vault_password.strip()
+    return vault_password
+
+
 def run_playbooks(parsed_args, playbooks,
                   extra_vars=None, limit=None, tags=None, quiet=False,
                   verbose_level=None, check=None):
@@ -158,8 +165,20 @@ def run_playbooks(parsed_args, playbooks,
     cmd = build_args(parsed_args, playbooks,
                      extra_vars=extra_vars, limit=limit, tags=tags,
                      verbose_level=verbose_level, check=check)
+    env = os.environ.copy()
+    # If the Vault password has been specified via --vault-password-file,
+    # ensure the environment variable is set, so that it can be referenced by
+    # playbooks to generate the kolla-ansible passwords.yml file.
+    if vault.VAULT_PASSWORD_ENV not in env and parsed_args.vault_password_file:
+        vault_password = _read_vault_password_file(
+            parsed_args.vault_password_file)
+        env[vault.VAULT_PASSWORD_ENV] = vault_password
+    # If the configuration path has been specified via --config-path, ensure
+    # the environment variable is set, so that it can be referenced by
+    # playbooks.
+    env.setdefault(CONFIG_PATH_ENV, parsed_args.config_path)
     try:
-        utils.run_command(cmd, quiet=quiet)
+        utils.run_command(cmd, quiet=quiet, env=env)
     except subprocess.CalledProcessError as e:
         LOG.error("Kayobe playbook(s) %s exited %d",
                   ", ".join(playbooks), e.returncode)
diff --git a/kayobe/tests/unit/test_ansible.py b/kayobe/tests/unit/test_ansible.py
index bf1d04ee1..9e2c80e59 100644
--- a/kayobe/tests/unit/test_ansible.py
+++ b/kayobe/tests/unit/test_ansible.py
@@ -31,6 +31,7 @@ class TestCase(unittest.TestCase):
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
+    @mock.patch.dict(os.environ, clear=True)
     def test_run_playbooks(self, mock_validate, mock_vars, mock_run):
         mock_vars.return_value = ["/etc/kayobe/vars-file1.yml",
                                   "/etc/kayobe/vars-file2.yaml"]
@@ -47,12 +48,15 @@ class TestCase(unittest.TestCase):
             "playbook1.yml",
             "playbook2.yml",
         ]
-        mock_run.assert_called_once_with(expected_cmd, quiet=False)
+        expected_env = {"KAYOBE_CONFIG_PATH": "/etc/kayobe"}
+        mock_run.assert_called_once_with(expected_cmd, quiet=False,
+                                         env=expected_env)
         mock_vars.assert_called_once_with("/etc/kayobe")
 
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
+    @mock.patch.dict(os.environ, clear=True)
     def test_run_playbooks_all_the_args(self, mock_validate, mock_vars,
                                         mock_run):
         mock_vars.return_value = ["/path/to/config/vars-file1.yml",
@@ -88,12 +92,15 @@ class TestCase(unittest.TestCase):
             "playbook1.yml",
             "playbook2.yml",
         ]
-        mock_run.assert_called_once_with(expected_cmd, quiet=False)
+        expected_env = {"KAYOBE_CONFIG_PATH": "/path/to/config"}
+        mock_run.assert_called_once_with(expected_cmd, quiet=False,
+                                         env=expected_env)
         mock_vars.assert_called_once_with("/path/to/config")
 
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
+    @mock.patch.dict(os.environ, clear=True)
     def test_run_playbooks_all_the_long_args(self, mock_validate, mock_vars,
                                              mock_run):
         mock_vars.return_value = ["/path/to/config/vars-file1.yml",
@@ -131,15 +138,20 @@ class TestCase(unittest.TestCase):
             "playbook1.yml",
             "playbook2.yml",
         ]
-        mock_run.assert_called_once_with(expected_cmd, quiet=False)
+        expected_env = {"KAYOBE_CONFIG_PATH": "/path/to/config"}
+        mock_run.assert_called_once_with(expected_cmd, quiet=False,
+                                         env=expected_env)
         mock_vars.assert_called_once_with("/path/to/config")
 
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
-    def test_run_playbooks_vault_password_file(self, mock_validate, mock_vars,
-                                               mock_run):
+    @mock.patch.object(ansible, "_read_vault_password_file")
+    @mock.patch.dict(os.environ, clear=True)
+    def test_run_playbooks_vault_password_file(self, mock_read, mock_validate,
+                                               mock_vars, mock_run):
         mock_vars.return_value = []
+        mock_read.return_value = "test-pass"
         parser = argparse.ArgumentParser()
         ansible.add_args(parser)
         vault.add_args(parser)
@@ -154,9 +166,13 @@ class TestCase(unittest.TestCase):
             "--inventory", "/etc/kayobe/inventory",
             "playbook1.yml",
         ]
-        mock_run.assert_called_once_with(expected_cmd, quiet=False)
+        expected_env = {"KAYOBE_CONFIG_PATH": "/etc/kayobe",
+                        "KAYOBE_VAULT_PASSWORD": "test-pass"}
+        mock_run.assert_called_once_with(expected_cmd, quiet=False,
+                                         env=expected_env)
 
-    @mock.patch.dict(os.environ, {"KAYOBE_VAULT_PASSWORD": "test-pass"})
+    @mock.patch.dict(os.environ, {"KAYOBE_VAULT_PASSWORD": "test-pass"},
+                     clear=True)
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
@@ -178,11 +194,15 @@ class TestCase(unittest.TestCase):
             "--inventory", "/etc/kayobe/inventory",
             "playbook1.yml",
         ]
-        mock_run.assert_called_once_with(expected_cmd, quiet=False)
+        expected_env = {"KAYOBE_CONFIG_PATH": "/etc/kayobe",
+                        "KAYOBE_VAULT_PASSWORD": "test-pass"}
+        mock_run.assert_called_once_with(expected_cmd, quiet=False,
+                                         env=expected_env)
 
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
+    @mock.patch.dict(os.environ, clear=True)
     def test_run_playbooks_vault_ask_and_file(self, mock_validate, mock_vars,
                                               mock_run):
         mock_vars.return_value = []
@@ -198,6 +218,7 @@ class TestCase(unittest.TestCase):
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
+    @mock.patch.dict(os.environ, clear=True)
     def test_run_playbooks_func_args(self, mock_validate, mock_vars, mock_run):
         mock_vars.return_value = ["/etc/kayobe/vars-file1.yml",
                                   "/etc/kayobe/vars-file2.yaml"]
@@ -232,12 +253,15 @@ class TestCase(unittest.TestCase):
             "playbook1.yml",
             "playbook2.yml",
         ]
-        mock_run.assert_called_once_with(expected_cmd, quiet=False)
+        expected_env = {"KAYOBE_CONFIG_PATH": "/etc/kayobe"}
+        mock_run.assert_called_once_with(expected_cmd, quiet=False,
+                                         env=expected_env)
         mock_vars.assert_called_once_with("/etc/kayobe")
 
     @mock.patch.object(utils, "run_command")
     @mock.patch.object(ansible, "_get_vars_files")
     @mock.patch.object(ansible, "_validate_args")
+    @mock.patch.dict(os.environ, clear=True)
     def test_run_playbooks_failure(self, mock_validate, mock_vars, mock_run):
         parser = argparse.ArgumentParser()
         ansible.add_args(parser)
@@ -281,3 +305,10 @@ class TestCase(unittest.TestCase):
             mock.call(os.path.join(dump_dir, "host1.yml")),
             mock.call(os.path.join(dump_dir, "host2.yml")),
         ])
+
+    @mock.patch.object(utils, 'read_file')
+    def test__read_vault_password_file(self, mock_read):
+        mock_read.return_value = "test-pass\n"
+        result = ansible._read_vault_password_file("/path/to/file")
+        self.assertEqual("test-pass", result)
+        mock_read.assert_called_once_with("/path/to/file")