diff --git a/crates/cargo-test-support/src/compare.rs b/crates/cargo-test-support/src/compare.rs
index 599772d4d1a..0118c5069cc 100644
--- a/crates/cargo-test-support/src/compare.rs
+++ b/crates/cargo-test-support/src/compare.rs
@@ -196,6 +196,7 @@ fn substitute_macros(input: &str) -> String {
         ("[OWNER]", "       Owner"),
         ("[MIGRATING]", "   Migrating"),
         ("[EXECUTABLE]", "  Executable"),
+        ("[SKIPPING]", "    Skipping"),
     ];
     let mut result = input.to_owned();
     for &(pat, subst) in &macros {
diff --git a/src/cargo/sources/git/utils.rs b/src/cargo/sources/git/utils.rs
index 4eafae1c99c..f6c630d276d 100644
--- a/src/cargo/sources/git/utils.rs
+++ b/src/cargo/sources/git/utils.rs
@@ -370,6 +370,18 @@ impl<'a> GitCheckout<'a> {
                 anyhow::format_err!("non-utf8 url for submodule {:?}?", child.path())
             })?;
 
+            // Skip the submodule if the config says not to update it.
+            if child.update_strategy() == git2::SubmoduleUpdate::None {
+                cargo_config.shell().status(
+                    "Skipping",
+                    format!(
+                        "git submodule `{}` due to update strategy in .gitmodules",
+                        url
+                    ),
+                )?;
+                return Ok(());
+            }
+
             // A submodule which is listed in .gitmodules but not actually
             // checked out will not have a head id, so we should ignore it.
             let head = match child.head_id() {
diff --git a/tests/testsuite/git.rs b/tests/testsuite/git.rs
index f94ec3a6a20..54dd8dcb05d 100644
--- a/tests/testsuite/git.rs
+++ b/tests/testsuite/git.rs
@@ -1023,6 +1023,60 @@ Caused by:
         .run();
 }
 
+#[cargo_test]
+fn dep_with_skipped_submodule() {
+    // Ensure we skip dependency submodules if their update strategy is `none`.
+    let qux = git::new("qux", |project| {
+        project.no_manifest().file("README", "skip me")
+    });
+
+    let bar = git::new("bar", |project| {
+        project
+            .file("Cargo.toml", &basic_manifest("bar", "0.0.0"))
+            .file("src/lib.rs", "")
+    });
+
+    // `qux` is a submodule of `bar`, but we don't want to update it.
+    let repo = git2::Repository::open(&bar.root()).unwrap();
+    git::add_submodule(&repo, qux.url().as_str(), Path::new("qux"));
+
+    let mut conf = git2::Config::open(&bar.root().join(".gitmodules")).unwrap();
+    conf.set_str("submodule.qux.update", "none").unwrap();
+
+    git::add(&repo);
+    git::commit(&repo);
+
+    let foo = project()
+        .file(
+            "Cargo.toml",
+            &format!(
+                r#"
+                    [project]
+                    name = "foo"
+                    version = "0.0.0"
+                    authors = []
+
+                    [dependencies.bar]
+                    git = "{}"
+                "#,
+                bar.url()
+            ),
+        )
+        .file("src/main.rs", "fn main() {}")
+        .build();
+
+    foo.cargo("build")
+        .with_stderr(
+            "\
+[UPDATING] git repository `file://[..]/bar`
+[SKIPPING] git submodule `file://[..]/qux` [..]
+[COMPILING] bar [..]
+[COMPILING] foo [..]
+[FINISHED] dev [unoptimized + debuginfo] target(s) in [..]\n",
+        )
+        .run();
+}
+
 #[cargo_test]
 fn dep_ambiguous() {
     let project = project();