diff --git a/src/stash.c b/src/stash.c
index ab4a68575..7742eee19 100644
--- a/src/stash.c
+++ b/src/stash.c
@@ -316,6 +316,8 @@ static int build_workdir_tree(
 	struct cb_data data = {0};
 	int error;
 
+	opts.flags = GIT_DIFF_IGNORE_SUBMODULES;
+
 	if ((error = git_commit_tree(&b_tree, b_commit)) < 0)
 		goto cleanup;
 
@@ -474,12 +476,14 @@ static int ensure_there_are_changes_to_stash(
 	git_status_options opts = GIT_STATUS_OPTIONS_INIT;
 
 	opts.show  = GIT_STATUS_SHOW_INDEX_AND_WORKDIR;
+	opts.flags = GIT_STATUS_OPT_EXCLUDE_SUBMODULES;
+
 	if (include_untracked_files)
-		opts.flags = GIT_STATUS_OPT_INCLUDE_UNTRACKED |
+		opts.flags |= GIT_STATUS_OPT_INCLUDE_UNTRACKED |
 		GIT_STATUS_OPT_RECURSE_UNTRACKED_DIRS;
 
 	if (include_ignored_files)
-		opts.flags = GIT_STATUS_OPT_INCLUDE_IGNORED;
+		opts.flags |= GIT_STATUS_OPT_INCLUDE_IGNORED;
 
 	error = git_status_foreach_ext(repo, &opts, is_dirty_cb, NULL);
 
diff --git a/tests-clar/stash/save.c b/tests-clar/stash/save.c
index 035b62279..3d92b26bd 100644
--- a/tests-clar/stash/save.c
+++ b/tests-clar/stash/save.c
@@ -113,33 +113,15 @@ $ git status --short
 	cl_assert_equal_i(GIT_STATUS_WT_NEW, status);
 }
 
-static void assert_status(
-	const char *path,
-	int status_flags)
-{
-	unsigned int status;
-	int error;
-
-	error = git_status_file(&status, repo, path);
-
-	if (status_flags < 0) {
-		cl_assert_equal_i(status_flags, error);
-		return;
-	}
-
-	cl_assert_equal_i(0, error);
-	cl_assert_equal_i((unsigned int)status_flags, status);
-}
-
 void test_stash_save__can_keep_index(void)
 {
 	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_KEEP_INDEX));
 
-	assert_status("what", GIT_STATUS_INDEX_MODIFIED);
-	assert_status("how", GIT_STATUS_INDEX_MODIFIED);
-	assert_status("who", GIT_STATUS_CURRENT);
-	assert_status("when", GIT_STATUS_WT_NEW);
-	assert_status("just.ignore", GIT_STATUS_IGNORED);
+	assert_status(repo, "what", GIT_STATUS_INDEX_MODIFIED);
+	assert_status(repo, "how", GIT_STATUS_INDEX_MODIFIED);
+	assert_status(repo, "who", GIT_STATUS_CURRENT);
+	assert_status(repo, "when", GIT_STATUS_WT_NEW);
+	assert_status(repo, "just.ignore", GIT_STATUS_IGNORED);
 }
 
 static void assert_commit_message_contains(const char *revision, const char *fragment)
@@ -308,25 +290,25 @@ void test_stash_save__can_stage_normal_then_stage_untracked(void)
 	 * 100644 blob b6ed15e81e2593d7bb6265eb4a991d29dc3e628b    when
 	*/
 
-	assert_status("what", GIT_STATUS_WT_MODIFIED | GIT_STATUS_INDEX_MODIFIED);
-	assert_status("how", GIT_STATUS_INDEX_MODIFIED);
-	assert_status("who", GIT_STATUS_WT_MODIFIED);
-	assert_status("when", GIT_STATUS_WT_NEW);
-	assert_status("just.ignore", GIT_STATUS_IGNORED);
+	assert_status(repo, "what", GIT_STATUS_WT_MODIFIED | GIT_STATUS_INDEX_MODIFIED);
+	assert_status(repo, "how", GIT_STATUS_INDEX_MODIFIED);
+	assert_status(repo, "who", GIT_STATUS_WT_MODIFIED);
+	assert_status(repo, "when", GIT_STATUS_WT_NEW);
+	assert_status(repo, "just.ignore", GIT_STATUS_IGNORED);
 
 	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_DEFAULT));
-	assert_status("what", GIT_STATUS_CURRENT);
-	assert_status("how", GIT_STATUS_CURRENT);
-	assert_status("who", GIT_STATUS_CURRENT);
-	assert_status("when", GIT_STATUS_WT_NEW);
-	assert_status("just.ignore", GIT_STATUS_IGNORED);
+	assert_status(repo, "what", GIT_STATUS_CURRENT);
+	assert_status(repo, "how", GIT_STATUS_CURRENT);
+	assert_status(repo, "who", GIT_STATUS_CURRENT);
+	assert_status(repo, "when", GIT_STATUS_WT_NEW);
+	assert_status(repo, "just.ignore", GIT_STATUS_IGNORED);
 
 	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_INCLUDE_UNTRACKED));
-	assert_status("what", GIT_STATUS_CURRENT);
-	assert_status("how", GIT_STATUS_CURRENT);
-	assert_status("who", GIT_STATUS_CURRENT);
-	assert_status("when", GIT_ENOTFOUND);
-	assert_status("just.ignore", GIT_STATUS_IGNORED);
+	assert_status(repo, "what", GIT_STATUS_CURRENT);
+	assert_status(repo, "how", GIT_STATUS_CURRENT);
+	assert_status(repo, "who", GIT_STATUS_CURRENT);
+	assert_status(repo, "when", GIT_ENOTFOUND);
+	assert_status(repo, "just.ignore", GIT_STATUS_IGNORED);
 
 
 	assert_blob_oid("stash@{1}^0:what", "bc99dc98b3eba0e9157e94769cd4d49cb49de449");	/* see you later */
@@ -360,11 +342,11 @@ void test_stash_save__including_untracked_without_any_untracked_file_creates_an_
 {
 	cl_git_pass(p_unlink("stash/when"));
 
-	assert_status("what", GIT_STATUS_WT_MODIFIED | GIT_STATUS_INDEX_MODIFIED);
-	assert_status("how", GIT_STATUS_INDEX_MODIFIED);
-	assert_status("who", GIT_STATUS_WT_MODIFIED);
-	assert_status("when", GIT_ENOTFOUND);
-	assert_status("just.ignore", GIT_STATUS_IGNORED);
+	assert_status(repo, "what", GIT_STATUS_WT_MODIFIED | GIT_STATUS_INDEX_MODIFIED);
+	assert_status(repo, "how", GIT_STATUS_INDEX_MODIFIED);
+	assert_status(repo, "who", GIT_STATUS_WT_MODIFIED);
+	assert_status(repo, "when", GIT_ENOTFOUND);
+	assert_status(repo, "just.ignore", GIT_STATUS_IGNORED);
 
 	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_INCLUDE_UNTRACKED));
 
diff --git a/tests-clar/stash/stash_helpers.c b/tests-clar/stash/stash_helpers.c
index 06b63f177..8b7d685f8 100644
--- a/tests-clar/stash/stash_helpers.c
+++ b/tests-clar/stash/stash_helpers.c
@@ -35,3 +35,22 @@ void setup_stash(git_repository *repo, git_signature *signature)
 
 	git_index_free(index);
 }
+
+void assert_status(
+	git_repository *repo,
+	const char *path,
+	int status_flags)
+{
+	unsigned int status;
+	int error;
+
+	error = git_status_file(&status, repo, path);
+
+	if (status_flags < 0) {
+		cl_assert_equal_i(status_flags, error);
+		return;
+	}
+
+	cl_assert_equal_i(0, error);
+	cl_assert_equal_i((unsigned int)status_flags, status);
+}
diff --git a/tests-clar/stash/stash_helpers.h b/tests-clar/stash/stash_helpers.h
index 7c3e13de3..66d758fe2 100644
--- a/tests-clar/stash/stash_helpers.h
+++ b/tests-clar/stash/stash_helpers.h
@@ -1,3 +1,8 @@
 void setup_stash(
 	git_repository *repo,
 	git_signature *signature);
+
+void assert_status(
+	git_repository *repo,
+	const char *path,
+	int status_flags);
diff --git a/tests-clar/stash/submodules.c b/tests-clar/stash/submodules.c
new file mode 100644
index 000000000..137c4408c
--- /dev/null
+++ b/tests-clar/stash/submodules.c
@@ -0,0 +1,80 @@
+#include "clar_libgit2.h"
+#include "stash_helpers.h"
+#include "../submodule/submodule_helpers.h"
+
+static git_repository *repo;
+static git_signature *signature;
+static git_oid stash_tip_oid;
+
+static git_submodule *sm;
+
+void test_stash_submodules__initialize(void)
+{
+	cl_git_pass(git_signature_new(&signature, "nulltoken", "emeric.fermas@gmail.com", 1323847743, 60)); /* Wed Dec 14 08:29:03 2011 +0100 */
+
+	repo = setup_fixture_submodules();
+
+	cl_git_pass(git_submodule_lookup(&sm, repo, "testrepo"));
+}
+
+void test_stash_submodules__cleanup(void)
+{
+	git_signature_free(signature);
+	signature = NULL;
+}
+
+void test_stash_submodules__does_not_stash_modified_submodules(void)
+{
+	static git_index *smindex;
+	static git_repository *smrepo;
+
+	assert_status(repo, "modified", GIT_STATUS_WT_MODIFIED);
+
+	/* modify file in submodule */
+	cl_git_rewritefile("submodules/testrepo/README", "heyheyhey");
+	assert_status(repo, "testrepo", GIT_STATUS_WT_MODIFIED);
+
+	/* add file to index in submodule */
+	cl_git_pass(git_submodule_open(&smrepo, sm));
+	cl_git_pass(git_repository_index(&smindex, smrepo));
+	cl_git_pass(git_index_add_bypath(smindex, "README"));
+
+	/* commit changed index of submodule */
+	cl_repo_commit_from_index(NULL, smrepo, NULL, 1372350000, "Modify it");
+	assert_status(repo, "testrepo", GIT_STATUS_WT_MODIFIED);
+
+	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_DEFAULT));
+
+	assert_status(repo, "testrepo", GIT_STATUS_WT_MODIFIED);
+	assert_status(repo, "modified", GIT_STATUS_CURRENT);
+
+	git_index_free(smindex);
+	git_repository_free(smrepo);
+}
+
+void test_stash_submodules__stash_is_empty_with_modified_submodules(void)
+{
+	static git_index *smindex;
+	static git_repository *smrepo;
+
+	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_DEFAULT));
+	assert_status(repo, "modified", GIT_STATUS_CURRENT);
+
+	/* modify file in submodule */
+	cl_git_rewritefile("submodules/testrepo/README", "heyheyhey");
+	assert_status(repo, "testrepo", GIT_STATUS_WT_MODIFIED);
+
+	/* add file to index in submodule */
+	cl_git_pass(git_submodule_open(&smrepo, sm));
+	cl_git_pass(git_repository_index(&smindex, smrepo));
+	cl_git_pass(git_index_add_bypath(smindex, "README"));
+
+	/* commit changed index of submodule */
+	cl_repo_commit_from_index(NULL, smrepo, NULL, 1372350000, "Modify it");
+	assert_status(repo, "testrepo", GIT_STATUS_WT_MODIFIED);
+
+	cl_git_fail_with(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_DEFAULT), GIT_ENOTFOUND);
+
+	git_index_free(smindex);
+	git_repository_free(smrepo);
+}