diff --git a/git-submodule.sh b/git-submodule.sh
index dba4d39e1f..9210f3af56 100755
--- a/git-submodule.sh
+++ b/git-submodule.sh
@@ -181,8 +181,11 @@ module_clone()
 		rm -f "$gitdir/index"
 	else
 		mkdir -p "$gitdir_base"
-		git clone $quiet -n ${reference:+"$reference"} \
-			--separate-git-dir "$gitdir" "$url" "$sm_path" ||
+		(
+			clear_local_git_env
+			git clone $quiet -n ${reference:+"$reference"} \
+				--separate-git-dir "$gitdir" "$url" "$sm_path"
+		) ||
 		die "$(eval_gettext "Clone of '\$url' into submodule path '\$sm_path' failed")"
 	fi
 
diff --git a/t/t7409-submodule-detached-worktree.sh b/t/t7409-submodule-detached-worktree.sh
new file mode 100644
index 0000000000..db75642fc3
--- /dev/null
+++ b/t/t7409-submodule-detached-worktree.sh
@@ -0,0 +1,61 @@
+#!/bin/sh
+#
+# Copyright (c) 2012 Daniel Graña
+#
+
+test_description='Test submodules on detached working tree
+
+This test verifies that "git submodule" initialization, update and addition works
+on detahced working trees
+'
+
+TEST_NO_CREATE_REPO=1
+. ./test-lib.sh
+
+test_expect_success 'submodule on detached working tree' '
+	git init --bare remote &&
+	test_create_repo bundle1 &&
+	(cd bundle1 && test_commit "shoot") &&
+	mkdir home &&
+	(
+		cd home &&
+		export GIT_WORK_TREE="$(pwd)" GIT_DIR="$(pwd)/.dotfiles" &&
+		git clone --bare ../remote .dotfiles &&
+		git submodule add ../bundle1 .vim/bundle/sogood &&
+		test_commit "sogood" &&
+		git push origin master
+	) &&
+	mkdir home2 &&
+	(
+		cd home2 &&
+		export GIT_WORK_TREE="$(pwd)" GIT_DIR="$(pwd)/.dotfiles" &&
+		git clone --bare ../remote .dotfiles &&
+		git submodule update --init
+	)
+'
+
+test_expect_success 'submodule on detached working pointed by core.worktree' '
+	mkdir home3 &&
+	(
+		cd home3 &&
+		export GIT_DIR="$(pwd)/.dotfiles" &&
+		git clone --bare ../remote "$GIT_DIR" &&
+		git config core.bare false &&
+		git config core.worktree .. &&
+		git submodule add ../bundle1 .vim/bundle/dupe &&
+		test_commit "dupe" &&
+		git push origin master
+	) &&
+	(
+		cd home &&
+		export GIT_DIR="$(pwd)/.dotfiles" &&
+		git config core.bare false &&
+		git config core.worktree .. &&
+		git pull &&
+		git submodule update &&
+		git submodule status &&
+		test -d .vim/bundle/dupe
+	)
+'
+
+test_done