diff --git a/changelogs/fragments/75608-git-fix-submodule-path.yml b/changelogs/fragments/75608-git-fix-submodule-path.yml
new file mode 100644
index 00000000000..13c229f55e7
--- /dev/null
+++ b/changelogs/fragments/75608-git-fix-submodule-path.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - git - Fix git path used when .git file is present (https://github.com/ansible/ansible/issues/75608).
diff --git a/lib/ansible/modules/git.py b/lib/ansible/modules/git.py
index 8418cda611c..dd0223b117e 100644
--- a/lib/ansible/modules/git.py
+++ b/lib/ansible/modules/git.py
@@ -757,7 +757,8 @@ def get_repo_path(dest, bare):
         if os.path.isabs(gitdir):
             repo_path = gitdir
         else:
-            repo_path = os.path.join(repo_path.split('.git')[0], gitdir)
+            # Use original destination directory with data from .git file.
+            repo_path = os.path.join(dest, gitdir)
         if not os.path.isdir(repo_path):
             raise ValueError('%s is not a directory' % repo_path)
     return repo_path
diff --git a/test/integration/targets/git/tasks/submodules.yml b/test/integration/targets/git/tasks/submodules.yml
index 647d1e23b4e..0b311e7984d 100644
--- a/test/integration/targets/git/tasks/submodules.yml
+++ b/test/integration/targets/git/tasks/submodules.yml
@@ -122,3 +122,29 @@
 - name: SUBMODULES | Enusre submodule2 is at the appropriate commit
   assert:
     that: '{{ submodule2.stdout_lines | length }} == 4'
+
+- name: SUBMODULES | clear checkout_dir
+  file:
+    state: absent
+    path: "{{ checkout_dir }}"
+
+
+- name: SUBMODULES | Clone main submodule repository
+  git:
+    repo: "{{ repo_submodules }}"
+    dest: "{{ checkout_dir }}/test.gitdir"
+    version: 45c6c07ef10fd9e453d90207e63da1ce5bd3ae1e
+    recursive: yes
+
+- name: SUBMODULES | Test that cloning submodule with .git in directory name works
+  git:
+    repo: "{{ repo_submodule1 }}"
+    dest: "{{ checkout_dir }}/test.gitdir/submodule1"
+
+- name: SUBMODULES | List submodule1
+  command: 'ls -1a {{ checkout_dir }}/test.gitdir/submodule1'
+  register: submodule1
+
+- name: SUBMODULES | Ensure submodule1 is at the appropriate commit
+  assert:
+    that: '{{ submodule1.stdout_lines | length }} == 4'