diff --git a/builtin/branch.c b/builtin/branch.c
index 55cd9a6e998..1201e41ef8c 100644
--- a/builtin/branch.c
+++ b/builtin/branch.c
@@ -40,7 +40,6 @@ static const char * const builtin_branch_usage[] = {
 static const char *head;
 static struct object_id head_oid;
 static int recurse_submodules = 0;
-static int submodule_propagate_branches = 0;
 
 static int branch_use_color = -1;
 static char branch_colors[][COLOR_MAXLEN] = {
@@ -106,10 +105,6 @@ static int git_branch_config(const char *var, const char *value, void *cb)
 		recurse_submodules = git_config_bool(var, value);
 		return 0;
 	}
-	if (!strcasecmp(var, "submodule.propagateBranches")) {
-		submodule_propagate_branches = git_config_bool(var, value);
-		return 0;
-	}
 
 	return git_color_default_config(var, value, cb);
 }
@@ -714,7 +709,7 @@ int cmd_branch(int argc, const char **argv, const char *prefix)
 
 	argc = parse_options(argc, argv, prefix, options, builtin_branch_usage,
 			     0);
-
+	prepare_repo_settings(the_repository);
 	if (!delete && !rename && !copy && !edit_description && !new_upstream &&
 	    !show_current && !unset_upstream && argc == 0)
 		list = 1;
@@ -730,7 +725,7 @@ int cmd_branch(int argc, const char **argv, const char *prefix)
 		usage_with_options(builtin_branch_usage, options);
 
 	if (recurse_submodules_explicit) {
-		if (!submodule_propagate_branches)
+		if (!the_repository->settings.submodule_propagate_branches)
 			die(_("branch with --recurse-submodules can only be used if submodule.propagateBranches is enabled"));
 		if (noncreate_actions)
 			die(_("--recurse-submodules can only be used to create branches"));
@@ -738,7 +733,7 @@ int cmd_branch(int argc, const char **argv, const char *prefix)
 
 	recurse_submodules =
 		(recurse_submodules || recurse_submodules_explicit) &&
-		submodule_propagate_branches;
+		the_repository->settings.submodule_propagate_branches;
 
 	if (filter.abbrev == -1)
 		filter.abbrev = DEFAULT_ABBREV;
diff --git a/cache.h b/cache.h
index 302810b353a..023f8feba42 100644
--- a/cache.h
+++ b/cache.h
@@ -505,6 +505,7 @@ static inline enum object_type object_type(unsigned int mode)
 #define GIT_WORK_TREE_ENVIRONMENT "GIT_WORK_TREE"
 #define GIT_PREFIX_ENVIRONMENT "GIT_PREFIX"
 #define GIT_SUPER_PREFIX_ENVIRONMENT "GIT_INTERNAL_SUPER_PREFIX"
+#define GIT_SUBMODULE_PROPAGATE_BRANCHES_ENVIRONMENT "GIT_INTERNAL_SUBMODULE_PROPAGATE_BRANCHES"
 #define DEFAULT_GIT_DIR_ENVIRONMENT ".git"
 #define DB_ENVIRONMENT "GIT_OBJECT_DIRECTORY"
 #define INDEX_ENVIRONMENT "GIT_INDEX_FILE"
diff --git a/repo-settings.c b/repo-settings.c
index 43bc881bfc9..2fde9bcdbf6 100644
--- a/repo-settings.c
+++ b/repo-settings.c
@@ -60,16 +60,17 @@ void prepare_repo_settings(struct repository *r)
 	repo_cfg_bool(r, "pack.usesparse", &r->settings.pack_use_sparse, 1);
 	repo_cfg_bool(r, "core.multipackindex", &r->settings.core_multi_pack_index, 1);
 	repo_cfg_bool(r, "index.sparse", &r->settings.sparse_index, 0);
+	repo_cfg_bool(r, "submodule.propagateBranches", &r->settings.submodule_propagate_branches, 0);
 
 	/*
-	 * The GIT_TEST_MULTI_PACK_INDEX variable is special in that
-	 * either it *or* the config sets
-	 * r->settings.core_multi_pack_index if true. We don't take
-	 * the environment variable if it exists (even if false) over
-	 * any config, as in most other cases.
+	 * Boolean settings from config and environment variables. Only
+	 * take the environment variable if it is true, otherwise, use
+	 * the config.
 	 */
 	if (git_env_bool(GIT_TEST_MULTI_PACK_INDEX, 0))
 		r->settings.core_multi_pack_index = 1;
+	if (git_env_bool(GIT_SUBMODULE_PROPAGATE_BRANCHES_ENVIRONMENT, 0))
+		r->settings.submodule_propagate_branches = 1;
 
 	/*
 	 * Non-boolean config
diff --git a/repository.h b/repository.h
index 797f471cce9..bf36b9ee6d7 100644
--- a/repository.h
+++ b/repository.h
@@ -36,6 +36,7 @@ struct repo_settings {
 	int fetch_write_commit_graph;
 	int command_requires_full_index;
 	int sparse_index;
+	int submodule_propagate_branches;
 
 	struct fsmonitor_settings *fsmonitor; /* lazily loaded */
 
diff --git a/submodule.c b/submodule.c
index 3fa5db3ecdf..510c1b04a76 100644
--- a/submodule.c
+++ b/submodule.c
@@ -504,6 +504,8 @@ static void print_submodule_diff_summary(struct repository *r, struct rev_info *
 
 void prepare_submodule_repo_env(struct strvec *out)
 {
+	if (the_repository->settings.submodule_propagate_branches)
+		strvec_pushf(out, "%s=1", GIT_SUBMODULE_PROPAGATE_BRANCHES_ENVIRONMENT);
 	prepare_other_repo_env(out, DEFAULT_GIT_DIR_ENVIRONMENT);
 }
 
