diff --git a/bitbake/lib/bb/fetch2/gitsm.py b/bitbake/lib/bb/fetch2/gitsm.py
index c8bc54e6ab..5869e1b99b 100644
--- a/bitbake/lib/bb/fetch2/gitsm.py
+++ b/bitbake/lib/bb/fetch2/gitsm.py
@@ -245,12 +245,11 @@ class GitSM(Git):
         ret = self.process_submodules(ud, ud.destdir, unpack_submodules, d)
 
         if not ud.bareclone and ret:
-            # All submodules should already be downloaded and configured in the tree.  This simply
-            # sets up the configuration and checks out the files.  The main project config should
-            # remain unmodified, and no download from the internet should occur. As such, lfs smudge
-            # should also be skipped as these files were already smudged in the fetch stage if lfs
-            # was enabled.
-            runfetchcmd("GIT_LFS_SKIP_SMUDGE=1 %s submodule update --recursive --no-fetch" % (ud.basecmd), d, quiet=True, workdir=ud.destdir)
+            cmdprefix = ""
+            # Avoid LFS smudging (replacing the LFS pointers with the actual content) when LFS shouldn't be used but git-lfs is installed.
+            if not self._need_lfs(ud):
+                cmdprefix = "GIT_LFS_SKIP_SMUDGE=1 "
+            runfetchcmd("%s%s submodule update --recursive --no-fetch" % (cmdprefix, ud.basecmd), d, quiet=True, workdir=ud.destdir)
     def clean(self, ud, d):
         def clean_submodule(ud, url, module, modpath, workdir, d):
             url += ";bareclone=1;nobranch=1"