diff --git a/ansible_runner/config/runner.py b/ansible_runner/config/runner.py
index 098d38196..7f8d88f4a 100644
--- a/ansible_runner/config/runner.py
+++ b/ansible_runner/config/runner.py
@@ -31,7 +31,7 @@
 from ansible_runner.config._base import BaseConfig, BaseExecutionMode
 from ansible_runner.exceptions import ConfigurationError
 from ansible_runner.output import debug
-from ansible_runner.utils import register_for_cleanup
+from ansible_runner.utils import register_for_cleanup, get_relative_inventory_path
 
 
 logger = logging.getLogger('ansible-runner')
@@ -160,14 +160,13 @@ def prepare_inventory(self):
         """
         Prepares the inventory default under ``private_data_dir`` if it's not overridden by the constructor.
         """
-        if self.containerized:
-            self.inventory = '/runner/inventory/hosts'
-            return
-
         if self.inventory is None:
             if os.path.exists(os.path.join(self.private_data_dir, "inventory")):
                 self.inventory = os.path.join(self.private_data_dir, "inventory")
 
+        if self.containerized:
+            self.inventory = get_relative_inventory_path(self.inventory, self.private_data_dir, new_base='/runner')
+
     def prepare_env(self):
         """
         Manages reading environment metadata files under ``private_data_dir`` and merging/updating
diff --git a/ansible_runner/interface.py b/ansible_runner/interface.py
index b9975fab0..85ab6cfbb 100644
--- a/ansible_runner/interface.py
+++ b/ansible_runner/interface.py
@@ -36,6 +36,7 @@
     check_isolation_executable_installed,
     sanitize_json_response,
     signal_handler,
+    get_relative_inventory_path
 )
 
 logging.getLogger('ansible-runner').addHandler(logging.NullHandler())
@@ -64,9 +65,8 @@ def init_runner(**kwargs):
         if os.path.isabs(playbook_path) and playbook_path.startswith(project_dir):
             kwargs['playbook'] = os.path.relpath(playbook_path, project_dir)
 
-        inventory_path = kwargs.get('inventory') or ''
-        if os.path.isabs(inventory_path) and inventory_path.startswith(private_data_dir):
-            kwargs['inventory'] = os.path.relpath(inventory_path, private_data_dir)
+        if kwargs.get('inventory'):
+            kwargs['inventory'] = get_relative_inventory_path(kwargs['inventory'], private_data_dir)
 
         roles_path = kwargs.get('envvars', {}).get('ANSIBLE_ROLES_PATH') or ''
         if os.path.isabs(roles_path) and roles_path.startswith(private_data_dir):
diff --git a/ansible_runner/streaming.py b/ansible_runner/streaming.py
index 1a64be740..e5aafa1d9 100644
--- a/ansible_runner/streaming.py
+++ b/ansible_runner/streaming.py
@@ -88,7 +88,12 @@ def update_paths(self, kwargs):
                 roles_dir = os.path.join(self.private_data_dir, 'roles')
                 kwargs['envvars']['ANSIBLE_ROLES_PATH'] = os.path.join(roles_dir, roles_path)
         if kwargs.get('inventory'):
-            kwargs['inventory'] = os.path.join(self.private_data_dir, kwargs['inventory'])
+            if isinstance(kwargs['inventory'], list):
+                kwargs['inventory'] = [
+                    os.path.join(self.private_data_dir, inventory_path) for inventory_path in kwargs['inventory']
+                ]
+            else:
+                kwargs['inventory'] = os.path.join(self.private_data_dir, kwargs['inventory'])
 
         return kwargs
 
diff --git a/ansible_runner/utils/__init__.py b/ansible_runner/utils/__init__.py
index 21a01bbce..e3e57532f 100644
--- a/ansible_runner/utils/__init__.py
+++ b/ansible_runner/utils/__init__.py
@@ -463,6 +463,23 @@ def sanitize_container_name(original_name):
     return re.sub('[^a-zA-Z0-9_-]', '_', text_type(original_name))
 
 
+def get_relative_inventory_path(inventory, private_data_dir, new_base=''):
+    if isinstance(inventory, list):
+        new_inventory = []
+        for inventory_path in inventory:
+            if os.path.isabs(inventory_path) and inventory_path.startswith(private_data_dir):
+                new_inventory.append(
+                    os.path.join(new_base, os.path.relpath(inventory_path, private_data_dir))
+                )
+            else:
+                new_inventory.append(inventory_path)
+        return new_inventory
+    elif isinstance(inventory, string_types):
+        if os.path.isabs(inventory) and inventory.startswith(private_data_dir):
+            return os.path.join(new_base, os.path.relpath(inventory, private_data_dir))
+    return inventory
+
+
 def cli_mounts():
     return [
         {