diff --git a/src/tito/builder/submodule_aware_builder.py b/src/tito/builder/submodule_aware_builder.py
index d4e10c65..8b4024ed 100644
--- a/src/tito/builder/submodule_aware_builder.py
+++ b/src/tito/builder/submodule_aware_builder.py
@@ -1,4 +1,5 @@
 # Copyright (c) 2008-2011 Red Hat, Inc.
+# Copyright (c) 2023 Karellen, Inc. (https://karellen.co)
 #
 # This software is licensed to you under the GNU General Public License,
 # version 2 (GPLv2). There is NO WARRANTY for this software, express or
@@ -26,6 +27,7 @@
     find_spec_like_file,
     get_commit_timestamp,
 )
+from tito.exception import TitoException
 from tito.tar import TarFixer
 
 
@@ -107,9 +109,12 @@ def run_git_archive(self, relative_git_dir, prefix, commit, dest_tar, subdir=Non
                 "%s > /dev/null" % git_archive_cmd,
             )
 
-    def _submodule_archives(self, relative_git_dir, prefix, commit, initial_tar):
-        submodules_cmd = "git config --file .gitmodules --get-regexp path"
-        submodules_output = run_command(submodules_cmd)
+    # pylint: disable=too-many-locals, too-many-arguments
+    def _submodule_archives(self, relative_git_dir, prefix, commit, initial_tar,
+                            submodule_tree="."):
+        with chdir(submodule_tree):
+            submodules_cmd = "git config --file .gitmodules --get-regexp path"
+            submodules_output = run_command(submodules_cmd)
 
         # split submodules output on newline
         # then on tab, and the directory is the last entry
@@ -120,23 +125,39 @@ def _submodule_archives(self, relative_git_dir, prefix, commit, initial_tar):
         # We ignore the hash in the sub modules list as we'll have to get the correct one
         # from the commit id in commit
         for submodule in submodules_list:
-            # to find the submodule shars:
-            # git rev-parse <commit>:./<submodule>
-            rev_parse_cmd = "git rev-parse %s:./%s" % (commit, submodule)
-            submodule_commit = run_command(rev_parse_cmd)
-            submodule_tar_file = "%s.%s" % (initial_tar, submodule.replace("/", "_"))
-            # prefix should be <prefix>/<submodule>
-            submodule_prefix = "%s/%s" % (prefix, submodule)
-
-            self.run_git_archive(
-                relative_git_dir,
-                submodule_prefix,
-                submodule_commit,
-                submodule_tar_file,
-                submodule,
-            )
+            with chdir(submodule_tree):
+                submodule_git_dir = os.path.join(submodule, ".git")
+                if not os.path.exists(submodule_git_dir) or not os.path.isdir(submodule_git_dir):
+                    raise TitoException("%r path does not contain '.git' directory. "
+                                        "Have you cloned the repository recursively?\n"
+                                        "Try `git submodule update --init --recursive`!" %
+                                        os.path.abspath(submodule))
+                # to find the submodule shars:
+                # git rev-parse <commit>:./<submodule>
+                rev_parse_cmd = "git rev-parse %s:./%s" % (commit, submodule)
+                submodule_commit = run_command(rev_parse_cmd)
+                submodule_tar_file = "%s.%s" % (initial_tar, submodule.replace("/", "_"))
+                # prefix should be <prefix>/<submodule>
+                submodule_prefix = "%s/%s" % (prefix, submodule)
+
+                self.run_git_archive(
+                    relative_git_dir,
+                    submodule_prefix,
+                    submodule_commit,
+                    submodule_tar_file,
+                    submodule,
+                )
             yield (submodule_tar_file)
 
+            submodule_dir = os.path.join(submodule_tree, submodule)
+            gitmodules_path = os.path.join(submodule_dir, ".gitmodules")
+            if os.path.exists(gitmodules_path):
+                for archive in self._submodule_archives(
+                        relative_git_dir, submodule_prefix, submodule_commit,
+                        submodule_tar_file, submodule_dir
+                    ):
+                    yield archive
+
     def create_tgz(self, git_root, prefix, commit, relative_dir, dest_tgz):
         """
         Create a .tar.gz from a projects source in git.