diff --git a/changelogs/fragments/68275-vault-module-args.yml b/changelogs/fragments/68275-vault-module-args.yml
new file mode 100644
index 00000000000..9c4c5c22a86
--- /dev/null
+++ b/changelogs/fragments/68275-vault-module-args.yml
@@ -0,0 +1,3 @@
+bugfixes:
+- Vault - Allow single vault encrypted values to be used directly as module
+  parameters. (https://github.com/ansible/ansible/issues/68275)
diff --git a/lib/ansible/executor/module_common.py b/lib/ansible/executor/module_common.py
index 87fcb0a1e5b..61b89291e3c 100644
--- a/lib/ansible/executor/module_common.py
+++ b/lib/ansible/executor/module_common.py
@@ -36,6 +36,7 @@ from ansible import constants as C
 from ansible.errors import AnsibleError, AnsiblePluginRemovedError
 from ansible.executor.interpreter_discovery import InterpreterDiscoveryRequiredError
 from ansible.executor.powershell import module_manifest as ps_manifest
+from ansible.module_utils.common.json import AnsibleJSONEncoder
 from ansible.module_utils.common.text.converters import to_bytes, to_text, to_native
 from ansible.plugins.loader import module_utils_loader
 from ansible.utils.collection_loader._collection_finder import _get_collection_metadata, _nested_dict_get
@@ -1092,7 +1093,7 @@ def _find_module_utils(module_name, b_module_data, module_path, module_args, tas
     if module_substyle == 'python':
         params = dict(ANSIBLE_MODULE_ARGS=module_args,)
         try:
-            python_repred_params = repr(json.dumps(params))
+            python_repred_params = repr(json.dumps(params, cls=AnsibleJSONEncoder, vault_to_text=True))
         except TypeError as e:
             raise AnsibleError("Unable to pass options to module, they must be JSON serializable: %s" % to_native(e))
 
@@ -1244,7 +1245,7 @@ def _find_module_utils(module_name, b_module_data, module_path, module_args, tas
         )
 
     elif module_substyle == 'jsonargs':
-        module_args_json = to_bytes(json.dumps(module_args))
+        module_args_json = to_bytes(json.dumps(module_args, cls=AnsibleJSONEncoder, vault_to_text=True))
 
         # these strings could be included in a third-party module but
         # officially they were included in the 'basic' snippet for new-style
diff --git a/lib/ansible/module_utils/common/json.py b/lib/ansible/module_utils/common/json.py
index 7da31f45987..3018e9e238e 100644
--- a/lib/ansible/module_utils/common/json.py
+++ b/lib/ansible/module_utils/common/json.py
@@ -36,15 +36,19 @@ class AnsibleJSONEncoder(json.JSONEncoder):
     Simple encoder class to deal with JSON encoding of Ansible internal types
     '''
 
-    def __init__(self, preprocess_unsafe=False, **kwargs):
+    def __init__(self, preprocess_unsafe=False, vault_to_text=False, **kwargs):
         self._preprocess_unsafe = preprocess_unsafe
+        self._vault_to_text = vault_to_text
         super(AnsibleJSONEncoder, self).__init__(**kwargs)
 
     # NOTE: ALWAYS inform AWS/Tower when new items get added as they consume them downstream via a callback
     def default(self, o):
         if getattr(o, '__ENCRYPTED__', False):
             # vault object
-            value = {'__ansible_vault': to_text(o._ciphertext, errors='surrogate_or_strict', nonstring='strict')}
+            if self._vault_to_text:
+                value = to_text(o, errors='surrogate_or_strict')
+            else:
+                value = {'__ansible_vault': to_text(o._ciphertext, errors='surrogate_or_strict', nonstring='strict')}
         elif getattr(o, '__UNSAFE__', False):
             # unsafe object, this will never be triggered, see ``AnsibleJSONEncoder.iterencode``
             value = {'__ansible_unsafe': to_text(o, errors='surrogate_or_strict', nonstring='strict')}
diff --git a/test/integration/targets/vault/single_vault_as_string.yml b/test/integration/targets/vault/single_vault_as_string.yml
index b80a94c43ef..1eb17d04c24 100644
--- a/test/integration/targets/vault/single_vault_as_string.yml
+++ b/test/integration/targets/vault/single_vault_as_string.yml
@@ -107,3 +107,17 @@
         that:
           - vaulted_value|wordcount == 2
       when: lookup('pipe', ansible_python.executable ~ ' -c "import jinja2; print(jinja2.__version__)"') is version('2.11.2', '>=')
+
+    - ping:
+        data: !vault |
+          $ANSIBLE_VAULT;1.1;AES256
+          35323961353038346165643738646465376139363061353835303739663538343266303232326635
+          3365353662646236356665323135633630656238316530640a663362363763633436373439663031
+          33663433383037396438656464636433653837376361313638366362333037323961316364363363
+          3835616438623261650a636164376534376661393134326662326362323131373964313961623365
+          3833
+      register: ping_result
+
+    - assert:
+        that:
+          - ping_result.ping == 'foo bar'