diff --git a/bitbake/lib/bb/fetch2/__init__.py b/bitbake/lib/bb/fetch2/__init__.py
index 4cfe08957d..1bf67ddbdc 100644
--- a/bitbake/lib/bb/fetch2/__init__.py
+++ b/bitbake/lib/bb/fetch2/__init__.py
@@ -1497,6 +1497,7 @@ class Fetch(object):
 
 from . import cvs
 from . import git
+from . import gitsm
 from . import local
 from . import svn
 from . import wget
@@ -1513,6 +1514,7 @@ methods.append(local.Local())
 methods.append(wget.Wget())
 methods.append(svn.Svn())
 methods.append(git.Git())
+methods.append(gitsm.GitSM())
 methods.append(cvs.Cvs())
 methods.append(svk.Svk())
 methods.append(ssh.SSH())
diff --git a/bitbake/lib/bb/fetch2/git.py b/bitbake/lib/bb/fetch2/git.py
index 63ff00b165..052802e602 100644
--- a/bitbake/lib/bb/fetch2/git.py
+++ b/bitbake/lib/bb/fetch2/git.py
@@ -234,7 +234,7 @@ class Git(FetchMethod):
             def_destsuffix = "git/"
 
         destsuffix = ud.parm.get("destsuffix", def_destsuffix)
-        destdir = os.path.join(destdir, destsuffix)
+        destdir = ud.destdir = os.path.join(destdir, destsuffix)
         if os.path.exists(destdir):
             bb.utils.prunedir(destdir)
 
diff --git a/bitbake/lib/bb/fetch2/gitsm.py b/bitbake/lib/bb/fetch2/gitsm.py
new file mode 100644
index 0000000000..572b637c9a
--- /dev/null
+++ b/bitbake/lib/bb/fetch2/gitsm.py
@@ -0,0 +1,78 @@
+# ex:ts=4:sw=4:sts=4:et
+# -*- tab-width: 4; c-basic-offset: 4; indent-tabs-mode: nil -*-
+"""
+BitBake 'Fetch' git submodules implementation
+"""
+
+# Copyright (C) 2013 Richard Purdie
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License version 2 as
+# published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, write to the Free Software Foundation, Inc.,
+# 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301 USA.
+
+import os
+import bb
+from   bb    import data
+from   bb.fetch2.git import Git
+from   bb.fetch2 import runfetchcmd
+from   bb.fetch2 import logger
+
+class GitSM(Git):
+    def supports(self, url, ud, d):
+        """
+        Check to see if a given url can be fetched with git.
+        """
+        return ud.type in ['gitsm']
+
+    def uses_submodules(self, ud, d):
+        for name in ud.names:
+            try:
+                runfetchcmd("%s show %s:.gitmodules" % (ud.basecmd, ud.revisions[name]), d, quiet=True)
+                return True
+            except bb.fetch.FetchError:
+                pass
+        return False
+
+    def update_submodules(self, u, ud, d):
+        # We have to convert bare -> full repo, do the submodule bit, then convert back
+        tmpclonedir = ud.clonedir + ".tmp"
+        gitdir = tmpclonedir + os.sep + ".git"
+        bb.utils.remove(tmpclonedir, True)
+        os.mkdir(tmpclonedir)
+        os.rename(ud.clonedir, gitdir)
+        runfetchcmd("sed " + gitdir + "/config -i -e 's/bare.*=.*true/bare = false/'", d)
+        os.chdir(tmpclonedir)
+        runfetchcmd("git reset --hard", d)
+        runfetchcmd("git submodule init", d)
+        runfetchcmd("git submodule update", d)
+        runfetchcmd("sed " + gitdir + "/config -i -e 's/bare.*=.*false/bare = true/'", d)
+        os.rename(gitdir, ud.clonedir,)
+        bb.utils.remove(tmpclonedir, True)
+
+    def download(self, loc, ud, d):
+        Git.download(self, loc, ud, d)
+
+        os.chdir(ud.clonedir)
+        submodules = self.uses_submodules(ud, d)
+        if submodules:
+            self.update_submodules(loc, ud, d)
+
+    def unpack(self, ud, destdir, d):
+        Git.unpack(self, ud, destdir, d)
+        
+        os.chdir(ud.destdir)
+        submodules = self.uses_submodules(ud, d)
+        if submodules:
+            runfetchcmd("cp -r " + ud.clonedir + "/modules " + ud.destdir + "/.git/", d)
+            runfetchcmd("git submodule init", d)
+            runfetchcmd("git submodule update", d)
+