diff --git a/Documentation/config/diff.txt b/Documentation/config/diff.txt
index c3ae136eba6..2d3331f55c2 100644
--- a/Documentation/config/diff.txt
+++ b/Documentation/config/diff.txt
@@ -85,6 +85,8 @@ diff.ignoreSubmodules::
 	and 'git status' when `status.submoduleSummary` is set unless it is
 	overridden by using the --ignore-submodules command-line option.
 	The 'git submodule' commands are not affected by this setting.
+	By default this is set to untracked so that any untracked
+	submodules are ignored.
 
 diff.mnemonicPrefix::
 	If set, 'git diff' uses a prefix pair that is different from the
diff --git a/diff.c b/diff.c
index 2253ec88029..69e3bc00ed8 100644
--- a/diff.c
+++ b/diff.c
@@ -4593,6 +4593,9 @@ void repo_diff_setup(struct repository *r, struct diff_options *options)
 
 	options->orderfile = diff_order_file_cfg;
 
+	if (!options->flags.ignore_submodule_set)
+		options->flags.ignore_untracked_in_submodules = 1;
+
 	if (diff_no_prefix) {
 		options->a_prefix = options->b_prefix = "";
 	} else if (!diff_mnemonic_prefix) {
diff --git a/diff.h b/diff.h
index 9665e220063..2ff2b1c7f2c 100644
--- a/diff.h
+++ b/diff.h
@@ -178,6 +178,7 @@ struct diff_flags {
 	unsigned diff_from_contents;
 	unsigned dirty_submodules;
 	unsigned ignore_untracked_in_submodules;
+	unsigned ignore_submodule_set;
 	unsigned ignore_dirty_submodules;
 	unsigned override_submodule_config;
 	unsigned dirstat_by_line;
diff --git a/submodule.c b/submodule.c
index b5614453292..9767ba9893c 100644
--- a/submodule.c
+++ b/submodule.c
@@ -420,6 +420,7 @@ const char *submodule_strategy_to_string(const struct submodule_update_strategy
 void handle_ignore_submodules_arg(struct diff_options *diffopt,
 				  const char *arg)
 {
+	diffopt->flags.ignore_submodule_set = 1;
 	diffopt->flags.ignore_submodules = 0;
 	diffopt->flags.ignore_untracked_in_submodules = 0;
 	diffopt->flags.ignore_dirty_submodules = 0;
diff --git a/t/t3701-add-interactive.sh b/t/t3701-add-interactive.sh
index cc3f434a970..3fec18563bf 100755
--- a/t/t3701-add-interactive.sh
+++ b/t/t3701-add-interactive.sh
@@ -849,6 +849,12 @@ test_expect_success 'setup different kinds of dirty submodules' '
 	cat >expected <<-\EOF &&
 	dirty-both-ways
 	dirty-head
+	EOF
+	test_cmp expected actual &&
+	git -C for-submodules diff-files --name-only --ignore-submodules=none >actual &&
+	cat >expected <<-\EOF &&
+	dirty-both-ways
+	dirty-head
 	dirty-otherwise
 	EOF
 	test_cmp expected actual &&
diff --git a/t/t4027-diff-submodule.sh b/t/t4027-diff-submodule.sh
index d7145ccca4b..894a11b224d 100755
--- a/t/t4027-diff-submodule.sh
+++ b/t/t4027-diff-submodule.sh
@@ -93,6 +93,14 @@ test_expect_success 'git diff HEAD with dirty submodule (untracked)' '
 	) &&
 	git diff HEAD >actual &&
 	sed -e "1,/^@@/d" actual >actual.body &&
+	expect_from_to >expect.body $subtip $subprev &&
+	test_cmp expect.body actual.body
+'
+
+test_expect_success 'git diff HEAD with dirty submodule (untracked) (none ignored)' '
+	test_config diff.ignoreSubmodules none &&
+	git diff HEAD >actual &&
+	sed -e "1,/^@@/d" actual >actual.body &&
 	expect_from_to >expect.body $subtip $subprev-dirty &&
 	test_cmp expect.body actual.body
 '
@@ -168,13 +176,13 @@ test_expect_success 'git diff HEAD with dirty submodule (untracked, refs match)'
 		git clean -qfdx &&
 		>cruft
 	) &&
-	git diff HEAD >actual &&
+	git diff --ignore-submodules=none HEAD >actual &&
 	sed -e "1,/^@@/d" actual >actual.body &&
 	expect_from_to >expect.body $subprev $subprev-dirty &&
 	test_cmp expect.body actual.body &&
 	git diff --ignore-submodules=all HEAD >actual2 &&
 	test_must_be_empty actual2 &&
-	git diff --ignore-submodules=untracked HEAD >actual3 &&
+	git diff HEAD >actual3 &&
 	test_must_be_empty actual3 &&
 	git diff --ignore-submodules=dirty HEAD >actual4 &&
 	test_must_be_empty actual4
diff --git a/t/t4041-diff-submodule-option.sh b/t/t4041-diff-submodule-option.sh
index f8521365856..b3a7b7acaaa 100755
--- a/t/t4041-diff-submodule-option.sh
+++ b/t/t4041-diff-submodule-option.sh
@@ -262,7 +262,7 @@ test_expect_success 'submodule is up to date' '
 
 test_expect_success 'submodule contains untracked content' '
 	echo new > sm1/new-file &&
-	git diff-index -p --submodule=log HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	EOF
@@ -270,7 +270,7 @@ test_expect_success 'submodule contains untracked content' '
 '
 
 test_expect_success 'submodule contains untracked content (untracked ignored)' '
-	git diff-index -p --ignore-submodules=untracked --submodule=log HEAD >actual &&
+	git diff-index -p --submodule=log HEAD >actual &&
 	test_must_be_empty actual
 '
 
@@ -286,7 +286,7 @@ test_expect_success 'submodule contains untracked content (all ignored)' '
 
 test_expect_success 'submodule contains untracked and modified content' '
 	echo new > sm1/foo6 &&
-	git diff-index -p --submodule=log HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	Submodule sm1 contains modified content
@@ -296,7 +296,7 @@ test_expect_success 'submodule contains untracked and modified content' '
 
 test_expect_success 'submodule contains untracked and modified content (untracked ignored)' '
 	echo new > sm1/foo6 &&
-	git diff-index -p --ignore-submodules=untracked --submodule=log HEAD >actual &&
+	git diff-index -p --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains modified content
 	EOF
@@ -337,7 +337,7 @@ test_expect_success 'submodule is modified' '
 
 test_expect_success 'modified submodule contains untracked content' '
 	echo new > sm1/new-file &&
-	git diff-index -p --submodule=log HEAD >actual &&
+	git diff-index -p  --ignore-submodules=none --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	Submodule sm1 $head6..$head8:
@@ -347,7 +347,7 @@ test_expect_success 'modified submodule contains untracked content' '
 '
 
 test_expect_success 'modified submodule contains untracked content (untracked ignored)' '
-	git diff-index -p --ignore-submodules=untracked --submodule=log HEAD >actual &&
+	git diff-index -p --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 $head6..$head8:
 	  > change
@@ -371,7 +371,7 @@ test_expect_success 'modified submodule contains untracked content (all ignored)
 
 test_expect_success 'modified submodule contains untracked and modified content' '
 	echo modification >> sm1/foo6 &&
-	git diff-index -p --submodule=log HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	Submodule sm1 contains modified content
@@ -383,7 +383,7 @@ test_expect_success 'modified submodule contains untracked and modified content'
 
 test_expect_success 'modified submodule contains untracked and modified content (untracked ignored)' '
 	echo modification >> sm1/foo6 &&
-	git diff-index -p --ignore-submodules=untracked --submodule=log HEAD >actual &&
+	git diff-index -p --submodule=log HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains modified content
 	Submodule sm1 $head6..$head8:
diff --git a/t/t4060-diff-submodule-option-diff-format.sh b/t/t4060-diff-submodule-option-diff-format.sh
index fc8229c7260..dc7b242697d 100755
--- a/t/t4060-diff-submodule-option-diff-format.sh
+++ b/t/t4060-diff-submodule-option-diff-format.sh
@@ -409,7 +409,7 @@ test_expect_success 'submodule is up to date' '
 
 test_expect_success 'submodule contains untracked content' '
 	echo new > sm1/new-file &&
-	git diff-index -p --submodule=diff HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	EOF
@@ -417,7 +417,7 @@ test_expect_success 'submodule contains untracked content' '
 '
 
 test_expect_success 'submodule contains untracked content (untracked ignored)' '
-	git diff-index -p --ignore-submodules=untracked --submodule=diff HEAD >actual &&
+	git diff-index -p --submodule=diff HEAD >actual &&
 	test_must_be_empty actual
 '
 
@@ -433,7 +433,7 @@ test_expect_success 'submodule contains untracked content (all ignored)' '
 
 test_expect_success 'submodule contains untracked and modified content' '
 	echo new > sm1/foo6 &&
-	git diff-index -p --submodule=diff HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	Submodule sm1 contains modified content
@@ -451,7 +451,7 @@ test_expect_success 'submodule contains untracked and modified content' '
 # NOT OK
 test_expect_success 'submodule contains untracked and modified content (untracked ignored)' '
 	echo new > sm1/foo6 &&
-	git diff-index -p --ignore-submodules=untracked --submodule=diff HEAD >actual &&
+	git diff-index -p --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains modified content
 	diff --git a/sm1/foo6 b/sm1/foo6
@@ -512,7 +512,7 @@ test_expect_success 'submodule is modified' '
 
 test_expect_success 'modified submodule contains untracked content' '
 	echo new > sm1/new-file &&
-	git diff-index -p --submodule=diff HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	Submodule sm1 $head7..$head8:
@@ -528,7 +528,7 @@ test_expect_success 'modified submodule contains untracked content' '
 '
 
 test_expect_success 'modified submodule contains untracked content (untracked ignored)' '
-	git diff-index -p --ignore-submodules=untracked --submodule=diff HEAD >actual &&
+	git diff-index -p --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 $head7..$head8:
 	diff --git a/sm1/foo6 b/sm1/foo6
@@ -564,7 +564,7 @@ test_expect_success 'modified submodule contains untracked content (all ignored)
 
 test_expect_success 'modified submodule contains untracked and modified content' '
 	echo modification >> sm1/foo6 &&
-	git diff-index -p --submodule=diff HEAD >actual &&
+	git diff-index -p --ignore-submodules=none --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains untracked content
 	Submodule sm1 contains modified content
@@ -583,7 +583,7 @@ test_expect_success 'modified submodule contains untracked and modified content'
 
 test_expect_success 'modified submodule contains untracked and modified content (untracked ignored)' '
 	echo modification >> sm1/foo6 &&
-	git diff-index -p --ignore-submodules=untracked --submodule=diff HEAD >actual &&
+	git diff-index -p --submodule=diff HEAD >actual &&
 	cat >expected <<-EOF &&
 	Submodule sm1 contains modified content
 	Submodule sm1 $head7..$head8:
diff --git a/wt-status.c b/wt-status.c
index 40b59be478c..0c8287a023e 100644
--- a/wt-status.c
+++ b/wt-status.c
@@ -606,7 +606,9 @@ static void wt_status_collect_changes_worktree(struct wt_status *s)
 	if (s->ignore_submodule_arg) {
 		rev.diffopt.flags.override_submodule_config = 1;
 		handle_ignore_submodules_arg(&rev.diffopt, s->ignore_submodule_arg);
-	}
+	} else if (!rev.diffopt.flags.ignore_submodule_set &&
+			s->show_untracked_files != SHOW_NO_UNTRACKED_FILES)
+		handle_ignore_submodules_arg(&rev.diffopt, "none");
 	rev.diffopt.format_callback = wt_status_collect_changed_cb;
 	rev.diffopt.format_callback_data = s;
 	rev.diffopt.detect_rename = s->detect_rename >= 0 ? s->detect_rename : rev.diffopt.detect_rename;