diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/CloneCommandTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/CloneCommandTest.java
index 0e9f6721c..ea59b1447 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/CloneCommandTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/CloneCommandTest.java
@@ -51,6 +51,7 @@ import java.io.File;
 import java.io.IOException;
 import java.util.Collections;
 import java.util.List;
+import java.util.Map;
 
 import org.eclipse.jgit.api.ListBranchCommand.ListMode;
 import org.eclipse.jgit.api.errors.JGitInternalException;
@@ -63,6 +64,9 @@ import org.eclipse.jgit.lib.RefUpdate;
 import org.eclipse.jgit.lib.Repository;
 import org.eclipse.jgit.lib.RepositoryTestCase;
 import org.eclipse.jgit.revwalk.RevBlob;
+import org.eclipse.jgit.revwalk.RevCommit;
+import org.eclipse.jgit.submodule.SubmoduleStatus;
+import org.eclipse.jgit.submodule.SubmoduleStatusType;
 import org.junit.Test;
 
 public class CloneCommandTest extends RepositoryTestCase {
@@ -252,4 +256,47 @@ public class CloneCommandTest extends RepositoryTestCase {
 
 		assertEquals(Constants.MASTER, git2.getRepository().getBranch());
 	}
+
+	@Test
+	public void testCloneRepositoryWithSubmodules() throws Exception {
+		git.checkout().setName(Constants.MASTER).call();
+
+		String file = "file.txt";
+		writeTrashFile(file, "content");
+		git.add().addFilepattern(file).call();
+		RevCommit commit = git.commit().setMessage("create file").call();
+
+		SubmoduleAddCommand command = new SubmoduleAddCommand(db);
+		String path = "sub";
+		command.setPath(path);
+		String uri = db.getDirectory().toURI().toString();
+		command.setURI(uri);
+		Repository repo = command.call();
+		assertNotNull(repo);
+		git.add().addFilepattern(path)
+				.addFilepattern(Constants.DOT_GIT_MODULES).call();
+		git.commit().setMessage("adding submodule").call();
+
+		File directory = createTempDirectory("testCloneRepositoryWithSubmodules");
+		CloneCommand clone = Git.cloneRepository();
+		clone.setDirectory(directory);
+		clone.setCloneSubmodules(true);
+		clone.setURI("file://" + git.getRepository().getWorkTree().getPath());
+		Git git2 = clone.call();
+		addRepoToClose(git2.getRepository());
+		assertNotNull(git2);
+
+		assertEquals(Constants.MASTER, git2.getRepository().getBranch());
+		assertTrue(new File(git2.getRepository().getWorkTree(), path
+				+ File.separatorChar + file).exists());
+
+		SubmoduleStatusCommand status = new SubmoduleStatusCommand(
+				git2.getRepository());
+		Map<String, SubmoduleStatus> statuses = status.call();
+		SubmoduleStatus pathStatus = statuses.get(path);
+		assertNotNull(pathStatus);
+		assertEquals(SubmoduleStatusType.INITIALIZED, pathStatus.getType());
+		assertEquals(commit, pathStatus.getHeadId());
+		assertEquals(commit, pathStatus.getIndexId());
+	}
 }
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/api/CloneCommand.java b/org.eclipse.jgit/src/org/eclipse/jgit/api/CloneCommand.java
index b779c488a..ae72b770f 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/api/CloneCommand.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/api/CloneCommand.java
@@ -94,6 +94,8 @@ public class CloneCommand extends TransportCommand<CloneCommand, Git> {
 
 	private boolean cloneAllBranches;
 
+	private boolean cloneSubmodules;
+
 	private boolean noCheckout;
 
 	private Collection<String> branchesToClone;
@@ -222,9 +224,22 @@ public class CloneCommand extends TransportCommand<CloneCommand, Git> {
 			DirCacheCheckout co = new DirCacheCheckout(clonedRepo, dc,
 					commit.getTree());
 			co.checkout();
+			if (cloneSubmodules)
+				cloneSubmodules(clonedRepo);
 		}
 	}
 
+	private void cloneSubmodules(Repository clonedRepo) {
+		SubmoduleInitCommand init = new SubmoduleInitCommand(clonedRepo);
+		if (init.call().isEmpty())
+			return;
+
+		SubmoduleUpdateCommand update = new SubmoduleUpdateCommand(clonedRepo);
+		configure(update);
+		update.setProgressMonitor(monitor);
+		update.call();
+	}
+
 	private Ref findBranchToCheckout(FetchResult result) {
 		final Ref idHEAD = result.getAdvertisedRef(Constants.HEAD);
 		if (idHEAD == null)
@@ -356,6 +371,17 @@ public class CloneCommand extends TransportCommand<CloneCommand, Git> {
 		return this;
 	}
 
+	/**
+	 * @param cloneSubmodules
+	 *            true to initialize and update submodules. Ignored when
+	 *            {@link #setBare(boolean)} is set to true.
+	 * @return {@code this}
+	 */
+	public CloneCommand setCloneSubmodules(boolean cloneSubmodules) {
+		this.cloneSubmodules = cloneSubmodules;
+		return this;
+	}
+
 	/**
 	 * @param branchesToClone
 	 *            collection of branches to clone. Ignored when allSelected is