diff --git a/lib/ansible/executor/playbook_executor.py b/lib/ansible/executor/playbook_executor.py
index 71796921237..501e90ee2c8 100644
--- a/lib/ansible/executor/playbook_executor.py
+++ b/lib/ansible/executor/playbook_executor.py
@@ -151,9 +151,8 @@ class PlaybookExecutor:
                             elif len(batch) == failed_hosts_count:
                                 break
 
-                            # clear the failed hosts dictionaires in the TQM for the next batch
+                            # save the unreachable hosts from this batch
                             self._unreachable_hosts.update(self._tqm._unreachable_hosts)
-                            self._tqm.clear_failed_hosts()
 
                         # if the last result wasn't zero or 3 (some hosts were unreachable),
                         # break out of the serial batch loop
diff --git a/lib/ansible/plugins/strategy/linear.py b/lib/ansible/plugins/strategy/linear.py
index 9ab302e0da1..c386df7fe10 100644
--- a/lib/ansible/plugins/strategy/linear.py
+++ b/lib/ansible/plugins/strategy/linear.py
@@ -163,7 +163,7 @@ class StrategyModule(StrategyBase):
 
             try:
                 display.debug("getting the remaining hosts for this loop")
-                hosts_left = [host for host in self._inventory.get_hosts(iterator._play.hosts) if host.name not in self._tqm._unreachable_hosts]
+                hosts_left = [host for host in self._inventory.get_hosts(iterator._play.hosts) if host.name not in self._tqm._unreachable_hosts and not iterator.is_failed(host)]
                 display.debug("done getting the remaining hosts for this loop")
 
                 # queue up this task for each host in the inventory
@@ -350,7 +350,7 @@ class StrategyModule(StrategyBase):
                 display.debug("checking for any_errors_fatal")
                 failed_hosts = []
                 for res in results:
-                    if res.is_failed() or res.is_unreachable():
+                    if res.is_failed():
                         failed_hosts.append(res._host.name)
 
                 # if any_errors_fatal and we had an error, mark all hosts as failed