diff --git a/changelogs/fragments/65576-fix-free-strategy-handler-filtering.yaml b/changelogs/fragments/65576-fix-free-strategy-handler-filtering.yaml
new file mode 100644
index 00000000000..87f5fbe0958
--- /dev/null
+++ b/changelogs/fragments/65576-fix-free-strategy-handler-filtering.yaml
@@ -0,0 +1,4 @@
+bugfixes:
+  - free strategy - Include failed hosts when filtering notified hosts for handlers. The strategy base should
+    determine whether or not to run handlers on those hosts depending on whether forcing handlers is enabled
+    (https://github.com/ansible/ansible/issues/65254).
diff --git a/lib/ansible/plugins/strategy/__init__.py b/lib/ansible/plugins/strategy/__init__.py
index 2275e5590d1..1750e3da9b7 100644
--- a/lib/ansible/plugins/strategy/__init__.py
+++ b/lib/ansible/plugins/strategy/__init__.py
@@ -911,7 +911,10 @@ class StrategyBase:
         if notified_hosts is None:
             notified_hosts = handler.notified_hosts[:]
 
+        # strategy plugins that filter hosts need access to the iterator to identify failed hosts
+        failed_hosts = self._filter_notified_failed_hosts(iterator, notified_hosts)
         notified_hosts = self._filter_notified_hosts(notified_hosts)
+        notified_hosts += failed_hosts
 
         if len(notified_hosts) > 0:
             saved_name = handler.name
@@ -991,6 +994,9 @@ class StrategyBase:
         display.debug("done running handlers, result is: %s" % result)
         return result
 
+    def _filter_notified_failed_hosts(self, iterator, notified_hosts):
+        return []
+
     def _filter_notified_hosts(self, notified_hosts):
         '''
         Filter notified hosts accordingly to strategy
diff --git a/lib/ansible/plugins/strategy/free.py b/lib/ansible/plugins/strategy/free.py
index 264c0e10956..7ed21183cf6 100644
--- a/lib/ansible/plugins/strategy/free.py
+++ b/lib/ansible/plugins/strategy/free.py
@@ -50,6 +50,11 @@ class StrategyModule(StrategyBase):
     # This strategy manages throttling on its own, so we don't want it done in queue_task
     ALLOW_BASE_THROTTLING = False
 
+    def _filter_notified_failed_hosts(self, iterator, notified_hosts):
+
+        # If --force-handlers is used we may act on hosts that have failed
+        return [host for host in notified_hosts if iterator.is_failed(host)]
+
     def _filter_notified_hosts(self, notified_hosts):
         '''
         Filter notified hosts accordingly to strategy
diff --git a/test/integration/targets/handlers/runme.sh b/test/integration/targets/handlers/runme.sh
index b87e342de48..59c81bcec09 100755
--- a/test/integration/targets/handlers/runme.sh
+++ b/test/integration/targets/handlers/runme.sh
@@ -17,33 +17,42 @@ ansible-playbook test_listening_handlers.yml -i inventory.handlers -v "$@"
 [ "$(ansible-playbook test_handlers.yml -i inventory.handlers -v "$@" --tags scenario2 -l A \
 | grep -E -o 'RUNNING HANDLER \[test_handlers : .*?]')" = "RUNNING HANDLER [test_handlers : test handler]" ]
 
-# Not forcing, should only run on successful host
-[ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal \
-| grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_B" ]
+# Test forcing handlers using the linear and free strategy
+for strategy in linear free; do
 
-# Forcing from command line
-[ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal --force-handlers \
-| grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
+  export ANSIBLE_STRATEGY=$strategy
 
-# Forcing from command line, should only run later tasks on unfailed hosts
-[ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal --force-handlers \
-| grep -E -o CALLED_TASK_. | sort | uniq | xargs)" = "CALLED_TASK_B CALLED_TASK_D CALLED_TASK_E" ]
+  # Not forcing, should only run on successful host
+  [ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal \
+  | grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_B" ]
 
-# Forcing from command line, should call handlers even if all hosts fail
-[ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal --force-handlers -e fail_all=yes \
-| grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
+  # Forcing from command line
+  [ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal --force-handlers \
+  | grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
 
-# Forcing from ansible.cfg
-[ "$(ANSIBLE_FORCE_HANDLERS=true ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal \
-| grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
+  # Forcing from command line, should only run later tasks on unfailed hosts
+  [ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal --force-handlers \
+  | grep -E -o CALLED_TASK_. | sort | uniq | xargs)" = "CALLED_TASK_B CALLED_TASK_D CALLED_TASK_E" ]
 
-# Forcing true in play
-[ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags force_true_in_play \
-| grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
+  # Forcing from command line, should call handlers even if all hosts fail
+  [ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal --force-handlers -e fail_all=yes \
+  | grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
 
-# Forcing false in play, which overrides command line
-[ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags force_false_in_play --force-handlers \
-| grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_B" ]
+  # Forcing from ansible.cfg
+  [ "$(ANSIBLE_FORCE_HANDLERS=true ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags normal \
+  | grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
+
+  # Forcing true in play
+  [ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags force_true_in_play \
+  | grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_A CALLED_HANDLER_B" ]
+
+  # Forcing false in play, which overrides command line
+  [ "$(ansible-playbook test_force_handlers.yml -i inventory.handlers -v "$@" --tags force_false_in_play --force-handlers \
+  | grep -E -o CALLED_HANDLER_. | sort | uniq | xargs)" = "CALLED_HANDLER_B" ]
+
+  unset ANSIBLE_STRATEGY
+
+done
 
 [ "$(ansible-playbook test_handlers_include.yml -i ../../inventory -v "$@" --tags playbook_include_handlers \
 | grep -E -o 'RUNNING HANDLER \[.*?]')" = "RUNNING HANDLER [test handler]" ]