diff --git a/changelogs/fragments/69357_optimize_inventory_graph_wo_vars.yml b/changelogs/fragments/69357_optimize_inventory_graph_wo_vars.yml
new file mode 100644
index 00000000000..10f8cd3cb2a
--- /dev/null
+++ b/changelogs/fragments/69357_optimize_inventory_graph_wo_vars.yml
@@ -0,0 +1,2 @@
+bugfixes:
+    - Avoid running subfunctions that are passed to show_vars function when it will be a noop.
diff --git a/lib/ansible/cli/inventory.py b/lib/ansible/cli/inventory.py
index 7ff24e75813..f8bf3c703cf 100644
--- a/lib/ansible/cli/inventory.py
+++ b/lib/ansible/cli/inventory.py
@@ -240,9 +240,8 @@ class InventoryCLI(CLI):
     @staticmethod
     def _show_vars(dump, depth):
         result = []
-        if context.CLIARGS['show_vars']:
-            for (name, val) in sorted(dump.items()):
-                result.append(InventoryCLI._graph_name('{%s = %s}' % (name, val), depth))
+        for (name, val) in sorted(dump.items()):
+            result.append(InventoryCLI._graph_name('{%s = %s}' % (name, val), depth))
         return result
 
     @staticmethod
@@ -261,9 +260,11 @@ class InventoryCLI(CLI):
         if group.name != 'all':
             for host in sorted(group.hosts, key=attrgetter('name')):
                 result.append(self._graph_name(host.name, depth))
-                result.extend(self._show_vars(self._get_host_variables(host), depth + 1))
+                if context.CLIARGS['show_vars']:
+                    result.extend(self._show_vars(self._get_host_variables(host), depth + 1))
 
-        result.extend(self._show_vars(self._get_group_variables(group), depth))
+        if context.CLIARGS['show_vars']:
+            result.extend(self._show_vars(self._get_group_variables(group), depth))
 
         return result