diff --git a/ansible_mitogen/strategy.py b/ansible_mitogen/strategy.py
index c319f3e11..70b45ea0e 100644
--- a/ansible_mitogen/strategy.py
+++ b/ansible_mitogen/strategy.py
@@ -328,8 +328,12 @@ def run(self, iterator, play_context, result=0):
         finally:
             ansible_mitogen.process.set_worker_model(None)
 
-    def _smuggle_to_connction_reset(self, task, play_context, iterator, target_host):
-        # Workaround for https://github.com/ansible/ansible/issues/84238
+    def _smuggle_to_connection_reset(self, task, play_context, iterator, target_host):
+        """
+        Create a templar and make it available for use in Connection.reset().
+        This allows templated connection variables to be used when Mitogen
+        reconstructs its connection stack.
+        """
         variables = self._variable_manager.get_vars(
             play=iterator._play, host=target_host, task=task,
             _hosts=self._hosts_cache, _hosts_all=self._hosts_cache_all,
@@ -337,13 +341,27 @@ def _smuggle_to_connction_reset(self, task, play_context, iterator, target_host)
         templar = ansible.template.Templar(
             loader=self._loader, variables=variables,
         )
+
+        # Required for remote_user option set by variable (e.g. ansible_user).
+        # Without it remote_user in ansible.cfg gets used.
+        play_context = play_context.set_task_and_variable_override(
+            task=task, variables=variables, templar=templar,
+        )
+        play_context.post_validate(templar=templar)
+
+        # Required for timeout option set by variable (e.g. ansible_timeout).
+        # Without it the task timeout keyword (default: 0) gets used.
+        play_context.update_vars(variables)
+
+        # Stash the task and templar somewhere Connection.reset() can find it
         play_context.vars.update({
             '_mitogen.smuggled.reset_connection': (task, templar),
         })
+        return play_context
 
     def _execute_meta(self, task, play_context, iterator, target_host):
         if task.args['_raw_params'] == 'reset_connection':
-            self._smuggle_to_connction_reset(task, play_context, iterator, target_host)
+            play_context = self._smuggle_to_connection_reset(task, play_context, iterator, target_host)
 
         return super(StrategyMixin, self)._execute_meta(
             task, play_context, iterator, target_host,
diff --git a/tests/ansible/regression/issue_109__target_has_old_ansible_installed.yml b/tests/ansible/regression/issue_109__target_has_old_ansible_installed.yml
index 064832ece..a7ae0908c 100644
--- a/tests/ansible/regression/issue_109__target_has_old_ansible_installed.yml
+++ b/tests/ansible/regression/issue_109__target_has_old_ansible_installed.yml
@@ -26,6 +26,7 @@
           - env.cwd == ansible_user_dir
           - (not env.mitogen_loaded) or (env.python_path.count("") == 1)
         fail_msg: |
+          ansible_user_dir={{ ansible_user_dir }}
           env={{ env }}
 
     - name: Run some new-style from ansible.module_utils... modules