diff --git a/lib/ansible/template/__init__.py b/lib/ansible/template/__init__.py
index 67a08f16447..31d60a1d3d1 100644
--- a/lib/ansible/template/__init__.py
+++ b/lib/ansible/template/__init__.py
@@ -310,7 +310,9 @@ class Templar:
                                 return C.DEFAULT_NULL_REPRESENTATION
 
                     # Using a cache in order to prevent template calls with already templated variables
-                    sha1_hash = sha1(variable.encode('utf-8') + str(preserve_trailing_newlines) + str(escape_backslashes) + str(fail_on_undefined) + str(overrides)).hexdigest()
+                    variable_hash = sha1(text_type(variable).encode('utf-8'))
+                    options_hash  = sha1((text_type(preserve_trailing_newlines) + text_type(escape_backslashes) + text_type(fail_on_undefined) + text_type(overrides)).encode('utf-8'))
+                    sha1_hash = variable_hash.hexdigest() + options_hash.hexdigest()
                     if sha1_hash in self._cached_result:
                         result = self._cached_result[sha1_hash]
                     else:
diff --git a/lib/ansible/vars/hostvars.py b/lib/ansible/vars/hostvars.py
index ff7fa84fb6c..bba46075efe 100644
--- a/lib/ansible/vars/hostvars.py
+++ b/lib/ansible/vars/hostvars.py
@@ -76,7 +76,7 @@ class HostVars(collections.Mapping):
         data = self._variable_manager.get_vars(loader=self._loader, host=host, play=self._play, include_hostvars=False)
 
         # Using cache in order to avoid template call
-        sha1_hash = sha1(str(data)).hexdigest()
+        sha1_hash = sha1(str(data).encode('utf-8')).hexdigest()
         if sha1_hash in self._cached_result:
             result = self._cached_result[sha1_hash]
         else: