diff --git a/lib/ansible/executor/task_executor.py b/lib/ansible/executor/task_executor.py
index 8c8990a97dc..fd174a8421e 100644
--- a/lib/ansible/executor/task_executor.py
+++ b/lib/ansible/executor/task_executor.py
@@ -34,6 +34,7 @@ from ansible.playbook.task import Task
 from ansible.template import Templar
 from ansible.utils.listify import listify_lookup_plugin_terms
 from ansible.utils.unicode import to_unicode
+from ansible.utils.vars import json_variable_cleaner
 
 from ansible.utils.debug import debug
 
@@ -123,7 +124,7 @@ class TaskExecutor:
                 res['changed'] = False
 
             debug("dumping result to json")
-            result = json.dumps(res)
+            result = json.dumps(res, default=json_variable_cleaner)
             debug("done dumping result, returning")
             return result
         except AnsibleError as e:
@@ -160,6 +161,11 @@ class TaskExecutor:
             else:
                 raise AnsibleError("Unexpected failure in finding the lookup named '%s' in the available lookup plugins" % self._task.loop)
 
+        if items:
+            from ansible.vars.unsafe_proxy import UnsafeProxy
+            for idx, item in enumerate(items):
+                if item is not None and not isinstance(item, UnsafeProxy):
+                    items[idx] = UnsafeProxy(item)
         return items
 
     def _run_loop(self, items):
diff --git a/lib/ansible/template/__init__.py b/lib/ansible/template/__init__.py
index 6e2416dd044..55c841b231b 100644
--- a/lib/ansible/template/__init__.py
+++ b/lib/ansible/template/__init__.py
@@ -213,8 +213,15 @@ class Templar:
         before being sent through the template engine. 
         '''
 
+        # Don't template unsafe variables, instead drop them back down to
+        # their constituent type.
         if hasattr(variable, '__UNSAFE__'):
-            return variable
+            if isinstance(variable, unicode):
+                return unicode(variable)
+            elif isinstance(variable, str):
+                return str(variable)
+            else:
+                return variable
 
         try:
             if convert_bare:
@@ -313,8 +320,11 @@ class Templar:
                 if self._fail_on_lookup_errors:
                     raise
                 ran = None
+
             if ran:
-                ran = ",".join(ran)
+                from ansible.vars.unsafe_proxy import UnsafeProxy
+                ran = UnsafeProxy(",".join(ran))
+
             return ran
         else:
             raise AnsibleError("lookup plugin (%s) not found" % name)
diff --git a/lib/ansible/utils/vars.py b/lib/ansible/utils/vars.py
index d202a1b18fa..7d150e5fa5f 100644
--- a/lib/ansible/utils/vars.py
+++ b/lib/ansible/utils/vars.py
@@ -128,3 +128,14 @@ def isidentifier(ident):
 
     return True
 
+def json_variable_cleaner(obj):
+    '''
+    Used as the default= parameter to json.dumps(), this method helps
+    clear out UnsafeProxy variables so they can be properly JSON encoded
+    '''
+    from ansible.vars.unsafe_proxy import UnsafeProxy
+    if isinstance(obj, UnsafeProxy):
+        return obj._obj
+    else:
+        return obj
+
diff --git a/lib/ansible/vars/unsafe_proxy.py b/lib/ansible/vars/unsafe_proxy.py
index a8bca351ae3..65bbf988948 100644
--- a/lib/ansible/vars/unsafe_proxy.py
+++ b/lib/ansible/vars/unsafe_proxy.py
@@ -59,10 +59,15 @@ class UnsafeProxy(object):
     # proxying (special cases)
     #
     def __getattribute__(self, name):
-        if name == '__UNSAFE__':
+        if name == '_obj':
+            return object.__getattribute__(self, "_obj")
+        elif name == '__UNSAFE__':
             return True
         else:
             return getattr(object.__getattribute__(self, "_obj"), name)
+
+    def __eq__(self, obj):
+        return object.__getattribute__(self, "_obj") == obj
     def __delattr__(self, name):
         delattr(object.__getattribute__(self, "_obj"), name)
     def __setattr__(self, name, value):
@@ -108,7 +113,7 @@ class UnsafeProxy(object):
         
         namespace = {}
         for name in cls._special_names:
-            if hasattr(theclass, name):
+            if hasattr(theclass, name) and not hasattr(cls, name):
                 namespace[name] = make_method(name)
         return type("%s(%s)" % (cls.__name__, theclass.__name__), (cls,), namespace)