diff --git a/CHANGELOG.md b/CHANGELOG.md
index 91d0eeae1..85542af7c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,7 @@
 
 * [#871](https://github.com/bbatsov/projectile/issues/871): Stop advice for `compilation-find-file` to override other advices.
 * [#557](https://github.com/bbatsov/projectile/issues/557): stack overflow in `projectile-find-tag'.
+* [#952](https://github.com/bbatsov/projectile/issues/952): VCS submodules brought in even thought not descendent of project root.
 
 ## 0.13.0 (10/21/2015)
 
diff --git a/projectile.el b/projectile.el
index ecb6eaed1..e78aa9414 100644
--- a/projectile.el
+++ b/projectile.el
@@ -912,15 +912,10 @@ Files are returned as relative paths to the project root."
      (t ""))))
 
 (defun projectile-get-all-sub-projects (project)
-  "Get all sub-projects for a given projects.
-PROJECT is base directory to start search recursively."
-  (let* ((default-directory project)
-         ;; search for sub-projects under current project `project'
-         (submodules (mapcar
-                      (lambda (s)
-                        (file-name-as-directory (expand-file-name s default-directory)))
-                      (projectile-files-via-ext-command (projectile-get-sub-projects-command)))))
+  "Get all sub-projects for a given project.
 
+PROJECT is base directory to start search recursively."
+  (let ((submodules (projectile-get-immediate-sub-projects project)))
     (cond
      ((null submodules)
       nil)
@@ -930,6 +925,33 @@ PROJECT is base directory to start search recursively."
                          (mapcar (lambda (s)
                                    (projectile-get-all-sub-projects s)) submodules)))))))
 
+(defun projectile-get-immediate-sub-projects (path)
+  "Get immediate sub-projects for a given project without recursing.
+
+PATH is the vcs root or project root from which to start
+searching, and should end with an appropriate path delimiter, such as
+'/' or a '\\'.
+
+If the vcs get-sub-projects query returns results outside of path,
+they are excluded from the results of this function."
+  (let* ((default-directory path)
+         ;; search for sub-projects under current project `project'
+         (submodules (mapcar
+                      (lambda (s)
+                        (file-name-as-directory (expand-file-name s default-directory)))
+                      (projectile-files-via-ext-command (projectile-get-sub-projects-command))))
+         (project-child-folder-regex
+          (concat "\\`"
+                  (regexp-quote path))))
+
+    ;; If project root is inside of an VCS folder, but not actually an
+    ;; VCS root itself, submodules external to the project will be
+    ;; included in the VCS get sub-projects result. Let's remove them.
+    (-filter (lambda (submodule)
+               (string-match-p project-child-folder-regex
+                               submodule))
+             submodules)))
+
 (defun projectile-get-sub-projects-files ()
   "Get files from sub-projects recursively."
   (-flatten
diff --git a/test/projectile-test.el b/test/projectile-test.el
index b385bae1d..452406c13 100644
--- a/test/projectile-test.el
+++ b/test/projectile-test.el
@@ -636,6 +636,31 @@
                          (projectile-find-matching-file
                           "spec/models/food/sea_spec.rb"))))))))
 
+(ert-deftest projectile-test-exclude-out-of-project-submodules ()
+  (projectile-test-with-files
+      (;; VSC root is here
+       "project/"
+       "project/.git/"
+       "project/.gitmodules"
+       ;; Current project root is here:
+       "project/web-ui/"
+       "project/web-ui/.projectile"
+       ;; VCS git submodule will return the following submodules,
+       ;; relative to current project root, 'project/web-ui/':
+       "project/web-ui/vendor/client-submodule/"
+       "project/server/vendor/server-submodule/")
+    (let ((project (file-truename (expand-file-name "project/web-ui"))))
+      (noflet ((projectile-files-via-ext-command
+                (arg) (when (string= default-directory project)
+                        '("vendor/client-submodule"
+                          "../server/vendor/server-submodule")))
+               (projectile-project-root
+                () project))
+
+        ;; assert that it only returns the submodule 'project/web-ui/vendor/client-submodule/'
+        (should (equal (list (expand-file-name "vendor/client-submodule/" project))
+                       (projectile-get-all-sub-projects project)))))))
+
 ;; Local Variables:
 ;; indent-tabs-mode: nil
 ;; End: