diff --git a/bitbake/lib/bb/fetch2/__init__.py b/bitbake/lib/bb/fetch2/__init__.py
index 6a38cb0955..a87e0b5338 100644
--- a/bitbake/lib/bb/fetch2/__init__.py
+++ b/bitbake/lib/bb/fetch2/__init__.py
@@ -1923,6 +1923,7 @@ class FetchConnectionCache(object):
 from . import cvs
 from . import git
 from . import gitsm
+from . import submodule
 from . import gitannex
 from . import local
 from . import svn
@@ -1945,6 +1946,7 @@ methods.append(wget.Wget())
 methods.append(svn.Svn())
 methods.append(git.Git())
 methods.append(gitsm.GitSM())
+methods.append(submodule.Submodule())
 methods.append(gitannex.GitANNEX())
 methods.append(cvs.Cvs())
 methods.append(ssh.SSH())
diff --git a/bitbake/lib/bb/fetch2/submodule.py b/bitbake/lib/bb/fetch2/submodule.py
new file mode 100644
index 0000000000..ef46404c2e
--- /dev/null
+++ b/bitbake/lib/bb/fetch2/submodule.py
@@ -0,0 +1,123 @@
+"""
+BitBake 'Fetch' implementation for local git submodules.
+
+Inherits from and extends the FetchMethod for retrieving, initializing and
+updating a submodule directory.
+
+SRC_URI = "submodule://<PATH TO TOP LEVEL GIT DIRECTORY>;localpath=<SUBMODULE NAME>"
+
+NOTE: If the name of the submodule contains space(s), please indicate this by placing
+the <SUBMODULE NAME> within a single quotation mark and replace the space(s) with a
+backslash (\). Ex) If the submodule name is: name with spaces, then write the
+following: localpath='name\with\spaces'.
+
+"""
+
+# Pontus Jaensson 2021
+#
+# SPDX-License-Identifier: GPL-2.0-only
+#
+
+import os
+import subprocess
+from re import compile
+from bb.fetch2 import FetchMethod
+
+class Submodule(FetchMethod):
+
+    def supports(self, ud, d):
+        """
+        Checks if the given url can be fetched with submodule.
+        """
+        return ud.type in ['submodule']
+
+    def download(self, ud, d):
+        """
+        Finds the path and the location to the submodule in the local .gitmodules
+        file and then passes it to the execution method.
+        """
+        module_path, module_location = self._prepare_module_data(ud.url)
+
+        self._run_command(f'git submodule init {module_path}', module_location)
+        self._run_command(f'git submodule update {module_path}', module_location)
+
+    def unpack(self, ud, root, d):
+        """
+        Is called once the 'download' of the submodule has been completed in order
+        to ensure that the source code is in the right location thanks to symlinks.
+        """
+        path, location = self._prepare_module_data(ud.url)
+        abs_path = location + path
+
+        try:
+            subprocess.check_output(['rm', '-r', 'gitmodule'])
+            subprocess.check_output(['ln', '-s', abs_path, 'gitmodule'])
+        except subprocess.CalledProcessError as e:
+            raise Exception(f'Failed setting up the symlinks correctly') from e
+
+    def _run_command(self, cmd, location):
+        """
+        Runs the provided cmd command at the path specified by the location argument.
+        Raises an error if the location is unvalid or if the cmd command fails.
+        """
+        try:
+            modules_git_command = cmd.split(' ')[:3]
+            module_path = cmd.split(' ')[3:]
+            os.chdir(location)
+            if len(module_path) > 1:
+                module_path = [' '.join(module_path)]
+            cmd_array = modules_git_command + module_path
+            subprocess.check_output(cmd_array)
+        except OSError as e:
+            raise Exception(f'Not able to change current working directory to: {location}') from e
+        except subprocess.CalledProcessError as e:
+            raise Exception(f'Not able to run command: {cmd} at {location}') from e
+
+    def _parse_url(self, url):
+        """
+        Helper method for deconstructing the url from the user data.
+        """
+        res = compile('([^:]*)://(([^/;]+)@)?(?P<location>[^;]+)(;(?P<submodule>.*))?').match(url)
+        module_location = res.group('location') + '/'
+        submodule = res.group('submodule').split('=')[1]
+        return module_location, submodule
+
+    def _prepare_module_data(self, url):
+        """
+        Helper method for preparing and processing the submodule data based on the
+        url provided.
+        """
+        module_location, name = self._parse_url(url)
+        modules_path = os.path.abspath(module_location + '.gitmodules')
+        try:
+            with open(modules_path) as file:
+                gitmodule_data = file.readlines()
+        except:
+            raise Exception(f'Could not open .gitmodules file located at: {modules_path}')
+
+        return self._process_submodules_info(gitmodule_data, name), module_location
+
+    def _process_submodules_info(self, gitmodule_data, wanted_module):
+        """
+        Helper method for iterating through the provided gitmodule_data in order to find
+        the path to the wanted_module. Returns it if it is found otherwise raises an Exception.
+        """
+        module_path = ''
+
+        if wanted_module[0] == wanted_module[-1] == "'":
+            wanted_module = wanted_module[1:-1].replace('\\', ' ')
+
+        for line in gitmodule_data:
+            if line.startswith('[submodule'):
+                name = line.split('"')[1]
+                if name == wanted_module:
+                    current_module = True
+                else:
+                    current_module = False
+            elif line.strip().startswith('path') and current_module:
+                module_path = line.split('=')[1].strip()
+                break
+        if module_path:
+            return module_path
+        else:
+            raise ValueError(f'{wanted_module} is not a valid submodule name.')