diff --git a/app/helpers/submodule_helper.rb b/app/helpers/submodule_helper.rb
index c0763a8a9c4..8e0a1e2ecdf 100644
--- a/app/helpers/submodule_helper.rb
+++ b/app/helpers/submodule_helper.rb
@@ -13,6 +13,17 @@ module SubmoduleHelper
 
     if url =~ /([^\/:]+)\/([^\/]+(?:\.git)?)\Z/
       namespace, project = $1, $2
+      gitlab_hosts = [Gitlab.config.gitlab.url,
+                      Gitlab.config.gitlab_shell.ssh_path_prefix]
+
+      gitlab_hosts.each do |host|
+        if url.start_with?(host)
+          namespace, _, project = url.sub(host, '').rpartition('/')
+          break
+        end
+      end
+
+      namespace.sub!(/\A\//, '')
       project.rstrip!
       project.sub!(/\.git\z/, '')
 
diff --git a/spec/helpers/submodule_helper_spec.rb b/spec/helpers/submodule_helper_spec.rb
index b05ae5c2232..cb727430117 100644
--- a/spec/helpers/submodule_helper_spec.rb
+++ b/spec/helpers/submodule_helper_spec.rb
@@ -52,6 +52,14 @@ describe SubmoduleHelper do
         stub_url(['http://', config.host, '/gitlab/root/gitlab-org/gitlab-ce.git'].join(''))
         expect(submodule_links(submodule_item)).to eq([namespace_project_path('gitlab-org', 'gitlab-ce'), namespace_project_tree_path('gitlab-org', 'gitlab-ce', 'hash')])
       end
+
+      it 'works with subgroups' do
+        allow(Gitlab.config.gitlab).to receive(:port).and_return(80) # set this just to be sure
+        allow(Gitlab.config.gitlab).to receive(:relative_url_root).and_return('/gitlab/root')
+        allow(Gitlab.config.gitlab).to receive(:url).and_return(Settings.send(:build_gitlab_url))
+        stub_url(['http://', config.host, '/gitlab/root/gitlab-org/sub/gitlab-ce.git'].join(''))
+        expect(submodule_links(submodule_item)).to eq([namespace_project_path('gitlab-org/sub', 'gitlab-ce'), namespace_project_tree_path('gitlab-org/sub', 'gitlab-ce', 'hash')])
+      end
     end
 
     context 'submodule on github.com' do