diff --git a/t/t3426-rebase-submodule.sh b/t/t3426-rebase-submodule.sh
new file mode 100755
index 0000000000..d5b896d445
--- /dev/null
+++ b/t/t3426-rebase-submodule.sh
@@ -0,0 +1,46 @@
+#!/bin/sh
+
+test_description='rebase can handle submodules'
+
+. ./test-lib.sh
+. "$TEST_DIRECTORY"/lib-submodule-update.sh
+. "$TEST_DIRECTORY"/lib-rebase.sh
+
+git_rebase () {
+	git status -su >expect &&
+	ls -1pR * >>expect &&
+	git checkout -b ours HEAD &&
+	echo x >>file1 &&
+	git add file1 &&
+	git commit -m add_x &&
+	git revert HEAD &&
+	git status -su >actual &&
+	ls -1pR * >>actual &&
+	test_cmp expect actual &&
+	git rebase "$1"
+}
+
+test_submodule_switch "git_rebase"
+
+git_rebase_interactive () {
+	git status -su >expect &&
+	ls -1pR * >>expect &&
+	git checkout -b ours HEAD &&
+	echo x >>file1 &&
+	git add file1 &&
+	git commit -m add_x &&
+	git revert HEAD &&
+	git status -su >actual &&
+	ls -1pR * >>actual &&
+	test_cmp expect actual &&
+	set_fake_editor &&
+	echo "fake-editor.sh" >.git/info/exclude &&
+	git rebase -i "$1"
+}
+
+KNOWN_FAILURE_NOFF_MERGE_DOESNT_CREATE_EMPTY_SUBMODULE_DIR=1
+# The real reason "replace directory with submodule" fails is because a
+# directory "sub1" exists, but we reuse the suppression added for merge here
+test_submodule_switch "git_rebase_interactive"
+
+test_done