diff --git a/scripts/lib/scriptutils.py b/scripts/lib/scriptutils.py
index 32e749dbb1..0a83470373 100644
--- a/scripts/lib/scriptutils.py
+++ b/scripts/lib/scriptutils.py
@@ -100,16 +100,36 @@ def load_plugins(logger, plugins, pluginpath):
 
 
 def git_convert_standalone_clone(repodir):
-    """If specified directory is a git repository, ensure it's a standalone clone"""
+    """
+    If specified directory is a git repository, ensure it's a standalone clone.
+    Also converts any nested git repositories (created by multiple SRC_URI git
+    entries with different destsuffix values) so that none of their contents
+    depend on the shared downloads directory via alternates.
+    """
+
     import bb.process
-    if os.path.exists(os.path.join(repodir, '.git')):
-        alternatesfile = os.path.join(repodir, '.git', 'objects', 'info', 'alternates')
+
+    def _convert(gitdir, workdir):
+        alternatesfile = os.path.join(gitdir, 'objects', 'info', 'alternates')
         if os.path.exists(alternatesfile):
             # This will have been cloned with -s, so we need to convert it so none
             # of the contents is shared
-            bb.process.run('git repack -a', cwd=repodir)
+            bb.process.run('git repack -a', cwd=workdir)
             os.remove(alternatesfile)
 
+    if os.path.exists(os.path.join(repodir, '.git')):
+        _convert(os.path.join(repodir, '.git'), repodir)
+
+    # Also handle nested git repos created by multiple SRC_URI git entries
+    # with different destsuffix values. Each nested repo is cloned with -s
+    # and has its own alternates pointing to the downloads directory.
+    for root, dirs, files in os.walk(repodir):
+        if root == repodir:
+            continue
+        if '.git' in dirs:
+            _convert(os.path.join(root, '.git'), root)
+            dirs[:] = []  # don't recurse into nested repos
+
 def _get_temp_recipe_dir(d):
     # This is a little bit hacky but we need to find a place where we can put
     # the recipe so that bitbake can find it. We're going to delete it at the