@@ -411,21 +411,9 @@ def add(cls, repo, name, path, url=None, branch=None, no_checkout=False):
         del(writer)
 
         # we deliberatly assume that our head matches our index !
-
-        try:
-            repo.head.commit
-            parent_repo_is_empty = False
-        except ValueError:
-            parent_repo_is_empty = True
-            # Can't set this yet, if the parent repo is empty.
-        # end
         sm.binsha = mrepo.head.commit.binsha
         index.add([sm], write=True)
 
-        if parent_repo_is_empty:
-            log.debug("Will not set _parent_commit now as the parent repository has no commit yet.")
-        # end
-
         return sm
 
     def update(self, recursive=False, init=True, to_latest_revision=False, progress=None, dry_run=False,
 
@@ -287,6 +287,11 @@ def update(self, previous_commit=None, recursive=True, force_remove=False, init=
                         if not dry_run:
                             smm = sm.module()
                             smmr = smm.remotes
+                            # As the branch might not exist yet, we will have to fetch all remotes to be sure ... .
+                            for remote in smmr:
+                                remote.fetch(progress=progress)
+                            # end for each remote
+
                             try:
                                 tbr = git.Head.create(smm, sm.branch_name, logmsg='branch: Created from HEAD')
                             except OSError:
@@ -295,21 +300,11 @@ def update(self, previous_commit=None, recursive=True, force_remove=False, init=
                             # END assure tracking branch exists
 
                             tbr.set_tracking_branch(find_first_remote_branch(smmr, sm.branch_name))
-                            # figure out whether the previous tracking branch contains
-                            # new commits compared to the other one, if not we can
-                            # delete it.
-                            try:
-                                tbr = find_first_remote_branch(smmr, psm.branch_name)
-                                if len(smm.git.cherry(tbr, psm.branch)) == 0:
-                                    psm.branch.delete(smm, psm.branch)
-                                # END delete original tracking branch if there are no changes
-                            except InvalidGitRepositoryError:
-                                # ignore it if the previous branch couldn't be found in the
-                                # current remotes, this just means we can't handle it
-                                pass
-                            # END exception handling
-
-                            # NOTE: All checkout is done in the base implementation of update
+                            # NOTE: All head-resetting is done in the base implementation of update
+                            # but we will have to checkout the new branch here. As it still points to the currently
+                            # checkout out commit, we don't do any harm.
+                            # As we don't want to update working-tree or index, changing the ref is all there is to do
+                            smm.head.reference = tbr
                         # END handle dry_run
 
                         progress.update(
 
@@ -49,7 +49,7 @@ def find_first_remote_branch(remotes, branch_name):
             continue
         # END exception handling
     # END for remote
-    raise InvalidGitRepositoryError("Didn't find remote branch %r in any of the given remotes", branch_name)
+    raise InvalidGitRepositoryError("Didn't find remote branch '%r' in any of the given remotes" % branch_name)
 
 #} END utilities
 
 
@@ -26,6 +26,7 @@
 def touch(filename):
     fp = open(filename, "ab")
     fp.close()
+    return filename
 
 
 def is_git_dir(d):
 
@@ -529,10 +529,9 @@ def test_root_module(self, rwrepo):
 
         # 'apply work' to the nested submodule and assure this is not removed/altered during updates
         # Need to commit first, otherwise submodule.update wouldn't have a reason to change the head
-        nsm_file = os.path.join(nsm.module().working_tree_dir, 'new-file')
+        touch(os.path.join(nsm.module().working_tree_dir, 'new-file'))
         # We cannot expect is_dirty to even run as we wouldn't reset a head to the same location
         assert nsm.module().head.commit.hexsha == nsm.hexsha
-        touch(nsm_file)
         nsm.module().index.add([nsm])
         nsm.module().index.commit("added new file")
         rm.update(recursive=False, dry_run=True, progress=prog)  # would not change head, and thus doens't fail
@@ -778,3 +777,67 @@ def test_rename(self, rwdir):
         if os.path.isfile(os.path.join(sm_mod.working_tree_dir, '.git')) == sm._need_gitfile_submodules(parent.git):
             assert sm_mod.git_dir.endswith(".git/modules/" + new_sm_name)
         # end
+
+    @with_rw_directory
+    def test_branch_renames(self, rw_dir):
+        # Setup initial sandbox:
+        # parent repo has one submodule, which has all the latest changes
+        source_url = self._submodule_url()
+        sm_source_repo = git.Repo.clone_from(source_url, os.path.join(rw_dir, 'sm-source'))
+        parent_repo = git.Repo.init(os.path.join(rw_dir, 'parent'))
+        sm = parent_repo.create_submodule('mysubmodule', 'subdir/submodule',
+                                          sm_source_repo.working_tree_dir, branch='master')
+        parent_repo.index.commit('added submodule')
+        assert sm.exists()
+
+        # Create feature branch with one new commit in submodule source
+        sm_fb = sm_source_repo.create_head('feature')
+        sm_fb.checkout()
+        new_file = touch(os.path.join(sm_source_repo.working_tree_dir, 'new-file'))
+        sm_source_repo.index.add([new_file])
+        sm.repo.index.commit("added new file")
+
+        # change designated submodule checkout branch to the new upstream feature branch
+        smcw = sm.config_writer()
+        smcw.set_value('branch', sm_fb.name)
+        smcw.release()
+        assert sm.repo.is_dirty(index=True, working_tree=False)
+        sm.repo.index.commit("changed submodule branch to '%s'" % sm_fb)
+
+        # verify submodule update with feature branch that leaves currently checked out branch in it's past
+        sm_mod = sm.module()
+        prev_commit = sm_mod.commit()
+        assert sm_mod.head.ref.name == 'master'
+        assert parent_repo.submodule_update()
+        assert sm_mod.head.ref.name == sm_fb.name
+        assert sm_mod.commit() == prev_commit, "Without to_latest_revision, we don't change the commit"
+
+        assert parent_repo.submodule_update(to_latest_revision=True)
+        assert sm_mod.head.ref.name == sm_fb.name
+        assert sm_mod.commit() == sm_fb.commit
+
+        # Create new branch which is in our past, and thus seemingly unrelated to the currently checked out one
+        # To make it even 'harder', we shall fork and create a new commit
+        sm_pfb = sm_source_repo.create_head('past-feature', commit='HEAD~20')
+        sm_pfb.checkout()
+        sm_source_repo.index.add([touch(os.path.join(sm_source_repo.working_tree_dir, 'new-file'))])
+        sm_source_repo.index.commit("new file added, to past of '%r'" % sm_fb)
+
+        # Change designated submodule checkout branch to a new commit in its own past
+        smcw = sm.config_writer()
+        smcw.set_value('branch', sm_pfb.path)
+        smcw.release()
+        sm.repo.index.commit("changed submodule branch to '%s'" % sm_pfb)
+
+        # Test submodule updates - must fail if submodule is dirty
+        touch(os.path.join(sm_mod.working_tree_dir, 'unstaged file'))
+        # This doesn't fail as our own submodule binsha didn't change, and the reset is only triggered if
+        # to latest revision is True.
+        parent_repo.submodule_update(to_latest_revision=False)
+        sm_mod.head.ref.name == sm_pfb.name, "should have been switched to past head"
+        sm_mod.commit() == sm_fb.commit, "Head wasn't reset"
+
+        self.failUnlessRaises(RepositoryDirtyError, parent_repo.submodule_update, to_latest_revision=True)
+        parent_repo.submodule_update(to_latest_revision=True, force_reset=True)
+        assert sm_mod.commit() == sm_pfb.commit, "Now head should have been reset"
+        assert sm_mod.head.ref.name == sm_pfb.name