diff --git a/src/subcommand.rs b/src/subcommand.rs
index fa6f1e0b7e..cbb53d89fa 100644
--- a/src/subcommand.rs
+++ b/src/subcommand.rs
@@ -147,7 +147,7 @@ impl Subcommand {
         };
 
         match Self::run_inner(config, loader, arguments, overrides, &search) {
-          Err((err @ Error::UnknownRecipe { .. }, true)) => {
+          Err((err @ (Error::UnknownRecipe { .. } | Error::UnknownSubmodule { .. }), true)) => {
             match search.justfile.parent().unwrap().parent() {
               Some(parent) => {
                 unknown_recipes_errors.get_or_insert(err);
diff --git a/tests/fallback.rs b/tests/fallback.rs
index 3330e17afb..238a12a7c8 100644
--- a/tests/fallback.rs
+++ b/tests/fallback.rs
@@ -362,3 +362,15 @@ fn stop_fallback_when_fallback_is_false() {
     .status(EXIT_FAILURE)
     .run();
 }
+
+#[test]
+fn works_with_modules() {
+  Test::new()
+    .write("bar/justfile", "set fallback := true")
+    .write("foo.just", "baz:\n @echo BAZ")
+    .justfile("mod foo")
+    .args(["foo::baz"])
+    .current_dir("bar")
+    .stdout("BAZ\n")
+    .run();
+}