diff --git a/git-submodule.sh b/git-submodule.sh
index cd749f473c..2a84d7e66a 100755
--- a/git-submodule.sh
+++ b/git-submodule.sh
@@ -423,8 +423,8 @@ cmd_foreach()
 		die_if_unmatched "$mode"
 		if test -e "$sm_path"/.git
 		then
-			displaypath=$(relative_path "$sm_path")
-			say "$(eval_gettext "Entering '\$prefix\$displaypath'")"
+			displaypath=$(relative_path "$prefix$sm_path")
+			say "$(eval_gettext "Entering '\$displaypath'")"
 			name=$(git submodule--helper name "$sm_path")
 			(
 				prefix="$prefix$sm_path/"
@@ -444,7 +444,7 @@ cmd_foreach()
 					cmd_foreach "--recursive" "$@"
 				fi
 			) <&3 3<&- ||
-			die "$(eval_gettext "Stopping at '\$prefix\$displaypath'; script returned non-zero status.")"
+			die "$(eval_gettext "Stopping at '\$displaypath'; script returned non-zero status.")"
 		fi
 	done
 }
@@ -483,7 +483,7 @@ cmd_init()
 		die_if_unmatched "$mode"
 		name=$(git submodule--helper name "$sm_path") || exit
 
-		displaypath=$(relative_path "$sm_path")
+		displaypath=$(relative_path "$prefix$sm_path")
 
 		# Copy url setting when it is not set yet
 		if test -z "$(git config "submodule.$name.url")"
@@ -800,8 +800,8 @@ cmd_update()
 				;;
 			!*)
 				command="${update_module#!}"
-				die_msg="$(eval_gettext "Execution of '\$command \$sha1' failed in submodule path '\$prefix\$sm_path'")"
-				say_msg="$(eval_gettext "Submodule path '\$prefix\$sm_path': '\$command \$sha1'")"
+				die_msg="$(eval_gettext "Execution of '\$command \$sha1' failed in submodule path '\$displaypath'")"
+				say_msg="$(eval_gettext "Submodule path '\$displaypath': '\$command \$sha1'")"
 				must_die_on_failure=yes
 				;;
 			*)
@@ -1157,6 +1157,7 @@ cmd_status()
 			(
 				prefix="$displaypath/"
 				sanitize_submodule_env
+				wt_prefix=
 				cd "$sm_path" &&
 				eval cmd_status
 			) ||
diff --git a/t/t7406-submodule-update.sh b/t/t7406-submodule-update.sh
index 0791df75ac..fd741f506f 100755
--- a/t/t7406-submodule-update.sh
+++ b/t/t7406-submodule-update.sh
@@ -63,6 +63,10 @@ test_expect_success 'setup a submodule tree' '
 	 git submodule add ../none none &&
 	 test_tick &&
 	 git commit -m "none"
+	) &&
+	git clone . recursivesuper &&
+	( cd recursivesuper
+	 git submodule add ../super super
 	)
 '
 
@@ -95,6 +99,35 @@ test_expect_success 'submodule update from subdirectory' '
 	)
 '
 
+supersha1=$(git -C super rev-parse HEAD)
+mergingsha1=$(git -C super/merging rev-parse HEAD)
+nonesha1=$(git -C super/none rev-parse HEAD)
+rebasingsha1=$(git -C super/rebasing rev-parse HEAD)
+submodulesha1=$(git -C super/submodule rev-parse HEAD)
+pwd=$(pwd)
+
+cat <<EOF >expect
+Submodule path '../super': checked out '$supersha1'
+Submodule 'merging' ($pwd/merging) registered for path '../super/merging'
+Submodule 'none' ($pwd/none) registered for path '../super/none'
+Submodule 'rebasing' ($pwd/rebasing) registered for path '../super/rebasing'
+Submodule 'submodule' ($pwd/submodule) registered for path '../super/submodule'
+Submodule path '../super/merging': checked out '$mergingsha1'
+Submodule path '../super/none': checked out '$nonesha1'
+Submodule path '../super/rebasing': checked out '$rebasingsha1'
+Submodule path '../super/submodule': checked out '$submodulesha1'
+EOF
+
+test_expect_success 'submodule update --init --recursive from subdirectory' '
+	git -C recursivesuper/super reset --hard HEAD^ &&
+	(cd recursivesuper &&
+	 mkdir tmp &&
+	 cd tmp &&
+	 git submodule update --init --recursive ../super >../../actual
+	) &&
+	test_cmp expect actual
+'
+
 apos="'";
 test_expect_success 'submodule update does not fetch already present commits' '
 	(cd submodule &&
@@ -311,16 +344,59 @@ test_expect_success 'submodule update - command in .git/config' '
 	)
 '
 
+cat << EOF >expect
+Execution of 'false $submodulesha1' failed in submodule path 'submodule'
+EOF
+
 test_expect_success 'submodule update - command in .git/config catches failure' '
 	(cd super &&
 	 git config submodule.submodule.update "!false"
 	) &&
 	(cd super/submodule &&
-	  git reset --hard HEAD^
+	  git reset --hard $submodulesha1^
 	) &&
 	(cd super &&
-	 test_must_fail git submodule update submodule
-	)
+	 test_must_fail git submodule update submodule 2>../actual
+	) &&
+	test_cmp actual expect
+'
+
+cat << EOF >expect
+Execution of 'false $submodulesha1' failed in submodule path '../submodule'
+EOF
+
+test_expect_success 'submodule update - command in .git/config catches failure -- subdirectory' '
+	(cd super &&
+	 git config submodule.submodule.update "!false"
+	) &&
+	(cd super/submodule &&
+	  git reset --hard $submodulesha1^
+	) &&
+	(cd super &&
+	 mkdir tmp && cd tmp &&
+	 test_must_fail git submodule update ../submodule 2>../../actual
+	) &&
+	test_cmp actual expect
+'
+
+cat << EOF >expect
+Execution of 'false $submodulesha1' failed in submodule path '../super/submodule'
+Failed to recurse into submodule path '../super'
+EOF
+
+test_expect_success 'recursive submodule update - command in .git/config catches failure -- subdirectory' '
+	(cd recursivesuper &&
+	 git submodule update --remote super &&
+	 git add super &&
+	 git commit -m "update to latest to have more than one commit in submodules"
+	) &&
+	git -C recursivesuper/super config submodule.submodule.update "!false" &&
+	git -C recursivesuper/super/submodule reset --hard $submodulesha1^ &&
+	(cd recursivesuper &&
+	 mkdir -p tmp && cd tmp &&
+	 test_must_fail git submodule update --recursive ../super 2>../../actual
+	) &&
+	test_cmp actual expect
 '
 
 test_expect_success 'submodule init does not copy command into .git/config' '
diff --git a/t/t7407-submodule-foreach.sh b/t/t7407-submodule-foreach.sh
index 7ca10b8606..6ba5daf42e 100755
--- a/t/t7407-submodule-foreach.sh
+++ b/t/t7407-submodule-foreach.sh
@@ -177,6 +177,26 @@ test_expect_success 'test messages from "foreach --recursive"' '
 	test_i18ncmp expect actual
 '
 
+cat > expect <<EOF
+Entering '../nested1'
+Entering '../nested1/nested2'
+Entering '../nested1/nested2/nested3'
+Entering '../nested1/nested2/nested3/submodule'
+Entering '../sub1'
+Entering '../sub2'
+Entering '../sub3'
+EOF
+
+test_expect_success 'test messages from "foreach --recursive" from subdirectory' '
+	(
+		cd clone2 &&
+		mkdir untracked &&
+		cd untracked &&
+		git submodule foreach --recursive >../../actual
+	) &&
+	test_i18ncmp expect actual
+'
+
 cat > expect <<EOF
 nested1-nested1
 nested2-nested2
@@ -242,8 +262,12 @@ test_expect_success 'test "status --recursive"' '
 	test_cmp expect actual
 '
 
-sed -e "/nested2 /s/.*/+$nested2sha1 nested1\/nested2 (file2~1)/;/sub[1-3]/d" < expect > expect2
-mv -f expect2 expect
+cat > expect <<EOF
+ $nested1sha1 nested1 (heads/master)
++$nested2sha1 nested1/nested2 (file2~1)
+ $nested3sha1 nested1/nested2/nested3 (heads/master)
+ $submodulesha1 nested1/nested2/nested3/submodule (heads/master)
+EOF
 
 test_expect_success 'ensure "status --cached --recursive" preserves the --cached flag' '
 	(
@@ -257,6 +281,27 @@ test_expect_success 'ensure "status --cached --recursive" preserves the --cached
 	test_cmp expect actual
 '
 
+nested2sha1=$(git -C clone3/nested1/nested2 rev-parse HEAD)
+
+cat > expect <<EOF
+ $nested1sha1 ../nested1 (heads/master)
++$nested2sha1 ../nested1/nested2 (file2)
+ $nested3sha1 ../nested1/nested2/nested3 (heads/master)
+ $submodulesha1 ../nested1/nested2/nested3/submodule (heads/master)
+ $sub1sha1 ../sub1 ($sub1sha1_short)
+ $sub2sha1 ../sub2 ($sub2sha1_short)
+ $sub3sha1 ../sub3 (heads/master)
+EOF
+
+test_expect_success 'test "status --recursive" from sub directory' '
+	(
+		cd clone3 &&
+		mkdir tmp && cd tmp &&
+		git submodule status --recursive > ../../actual
+	) &&
+	test_cmp expect actual
+'
+
 test_expect_success 'use "git clone --recursive" to checkout all submodules' '
 	git clone --recursive super clone4 &&
 	(