diff --git a/__test__/git-command-manager.test.ts b/__test__/git-command-manager.test.ts
index e669c0f..6ae1329 100644
--- a/__test__/git-command-manager.test.ts
+++ b/__test__/git-command-manager.test.ts
@@ -403,6 +403,72 @@ describe('Test fetchDepth and fetchTags options', () => {
   })
 })
 
+describe('Test submoduleUpdate filter option', () => {
+  beforeEach(async () => {
+    mockFileExistsSync.mockReset()
+    mockDirectoryExistsSync.mockReset()
+    mockExec.mockImplementation((path: any, args: any, options: any) => {
+      if (args.includes('version')) {
+        options.listeners.stdout(Buffer.from('2.18'))
+      }
+
+      return 0
+    })
+  })
+
+  afterEach(() => {
+    jest.clearAllMocks()
+  })
+
+  it('should call execGit with --filter when a filter option is provided', async () => {
+    const workingDirectory = 'test'
+    const lfs = false
+    const doSparseCheckout = false
+    git = await commandManager.createCommandManager(
+      workingDirectory,
+      lfs,
+      doSparseCheckout
+    )
+
+    await git.submoduleUpdate(1, true, 'blob:none')
+
+    expect(mockExec).toHaveBeenCalledWith(
+      expect.any(String),
+      [
+        '-c',
+        'protocol.version=2',
+        'submodule',
+        'update',
+        '--init',
+        '--force',
+        '--depth=1',
+        '--recursive',
+        '--filter=blob:none'
+      ],
+      expect.any(Object)
+    )
+  })
+
+  it('should call execGit without --filter when no filter option is provided', async () => {
+    const workingDirectory = 'test'
+    const lfs = false
+    const doSparseCheckout = false
+    git = await commandManager.createCommandManager(
+      workingDirectory,
+      lfs,
+      doSparseCheckout
+    )
+
+    await git.submoduleUpdate(0, false, undefined)
+
+    expect(mockExec).toHaveBeenCalledWith(
+      expect.any(String),
+      ['-c', 'protocol.version=2', 'submodule', 'update', '--init', '--force'],
+      expect.any(Object)
+    )
+  })
+})
+
 describe('repository initialization object format', () => {
   beforeEach(async () => {
     mockFileExistsSync.mockReset()
diff --git a/dist/index.js b/dist/index.js
index b381bd2..a48e512 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -35872,7 +35872,7 @@ class GitCommandManager {
         }
         await this.execGit(args);
     }
-    async submoduleUpdate(fetchDepth, recursive) {
+    async submoduleUpdate(fetchDepth, recursive, filter) {
         const args = ['-c', 'protocol.version=2'];
         args.push('submodule', 'update', '--init', '--force');
         if (fetchDepth > 0) {
@@ -35881,6 +35881,9 @@ class GitCommandManager {
         if (recursive) {
             args.push('--recursive');
         }
+        if (filter) {
+            args.push(`--filter=${filter}`);
+        }
         await this.execGit(args);
     }
     async submoduleStatus() {
@@ -41888,7 +41891,7 @@ async function getSource(settings) {
             // Checkout submodules
             startGroup('Fetching submodules');
             await git.submoduleSync(settings.nestedSubmodules);
-            await git.submoduleUpdate(settings.fetchDepth, settings.nestedSubmodules);
+            await git.submoduleUpdate(settings.fetchDepth, settings.nestedSubmodules, fetchOptions.filter);
             await git.submoduleForeach('git config --local gc.auto 0', settings.nestedSubmodules);
             endGroup();
             // Persist credentials
diff --git a/src/git-command-manager.ts b/src/git-command-manager.ts
index 36cdb47..20bea5a 100644
--- a/src/git-command-manager.ts
+++ b/src/git-command-manager.ts
@@ -55,7 +55,11 @@ export interface IGitCommandManager {
   shaExists(sha: string): Promise<boolean>
   submoduleForeach(command: string, recursive: boolean): Promise<string>
   submoduleSync(recursive: boolean): Promise<void>
-  submoduleUpdate(fetchDepth: number, recursive: boolean): Promise<void>
+  submoduleUpdate(
+    fetchDepth: number,
+    recursive: boolean,
+    filter: string | undefined
+  ): Promise<void>
   submoduleStatus(): Promise<boolean>
   tagExists(pattern: string): Promise<boolean>
   tryClean(): Promise<boolean>
@@ -452,7 +456,11 @@ class GitCommandManager {
     await this.execGit(args)
   }
 
-  async submoduleUpdate(fetchDepth: number, recursive: boolean): Promise<void> {
+  async submoduleUpdate(
+    fetchDepth: number,
+    recursive: boolean,
+    filter: string | undefined
+  ): Promise<void> {
     const args = ['-c', 'protocol.version=2']
     args.push('submodule', 'update', '--init', '--force')
     if (fetchDepth > 0) {
@@ -463,6 +471,10 @@ class GitCommandManager {
       args.push('--recursive')
     }
 
+    if (filter) {
+      args.push(`--filter=${filter}`)
+    }
+
     await this.execGit(args)
   }
 
diff --git a/src/git-source-provider.ts b/src/git-source-provider.ts
index b9c1d35..a4fac9f 100644
--- a/src/git-source-provider.ts
+++ b/src/git-source-provider.ts
@@ -281,7 +281,11 @@ export async function getSource(settings: IGitSourceSettings): Promise<void> {
       // Checkout submodules
       core.startGroup('Fetching submodules')
       await git.submoduleSync(settings.nestedSubmodules)
-      await git.submoduleUpdate(settings.fetchDepth, settings.nestedSubmodules)
+      await git.submoduleUpdate(
+        settings.fetchDepth,
+        settings.nestedSubmodules,
+        fetchOptions.filter
+      )
       await git.submoduleForeach(
         'git config --local gc.auto 0',
         settings.nestedSubmodules