diff --git a/bitbake/lib/bb/fetch2/svn.py b/bitbake/lib/bb/fetch2/svn.py
index baeb0e7eea..59ce93160c 100644
--- a/bitbake/lib/bb/fetch2/svn.py
+++ b/bitbake/lib/bb/fetch2/svn.py
@@ -91,6 +91,13 @@ class Svn(FetchMethod):
             svncmd = "%s log --limit 1 %s %s://%s/%s/" % (ud.basecmd, " ".join(options), proto, svnroot, ud.module)
         else:
             suffix = ""
+
+            # externals may be either 'allowed' or 'nowarn', but not both.  Allowed
+            # will not issue a warning, but will log to the debug buffer what has likely
+            # been downloaded by SVN.
+            if not ("externals" in ud.parm and ud.parm["externals"] == "allowed"):
+                options.append("--ignore-externals")
+
             if ud.revision:
                 options.append("-r %s" % ud.revision)
                 suffix = "@%s" % (ud.revision)
@@ -136,6 +143,18 @@ class Svn(FetchMethod):
                 bb.fetch2.check_network_access(d, svnfetchcmd, ud.url)
                 runfetchcmd(svnfetchcmd, d, workdir=ud.pkgdir)
 
+            if not ("externals" in ud.parm and ud.parm["externals"] == "nowarn"):
+                # Warn the user if this had externals (won't catch them all)
+                output = runfetchcmd("svn propget svn:externals", d, workdir=ud.moddir)
+                if output:
+                    if "--ignore-externals" in svnfetchcmd.split():
+                        bb.warn("%s contains svn:externals." % ud.url)
+                        bb.warn("These should be added to the recipe SRC_URI as necessary.")
+                        bb.warn("svn fetch has ignored externals:\n%s" % output)
+                        bb.warn("To disable this warning add ';externals=nowarn' to the url.")
+                    else:
+                        bb.debug(1, "svn repository has externals:\n%s" % output)
+
             scmdata = ud.parm.get("scmdata", "")
             if scmdata == "keep":
                 tar_flags = ""
diff --git a/bitbake/lib/bb/tests/fetch.py b/bitbake/lib/bb/tests/fetch.py
index 6bdf0416d7..16f975b137 100644
--- a/bitbake/lib/bb/tests/fetch.py
+++ b/bitbake/lib/bb/tests/fetch.py
@@ -991,6 +991,86 @@ class FetcherNetworkTest(FetcherTest):
         self.assertTrue(os.path.exists(os.path.join(repo_path, 'edgelet/hsm-sys/azure-iot-hsm-c/deps/utpm/deps/c-utility/testtools/umock-c/deps/ctest/README.md')), msg='Missing submodule checkout')
         self.assertTrue(os.path.exists(os.path.join(repo_path, 'edgelet/hsm-sys/azure-iot-hsm-c/deps/utpm/deps/c-utility/testtools/umock-c/deps/testrunner/readme.md')), msg='Missing submodule checkout')
 
+class SVNTest(FetcherTest):
+    def skipIfNoSvn():
+        import shutil
+        if not shutil.which("svn"):
+            return unittest.skip("svn not installed,  tests being skipped")
+
+        if not shutil.which("svnadmin"):
+            return unittest.skip("svnadmin not installed,  tests being skipped")
+
+        return lambda f: f
+
+    @skipIfNoSvn()
+    def setUp(self):
+        """ Create a local repository """
+
+        super(SVNTest, self).setUp()
+
+        # Create something we can fetch
+        src_dir = tempfile.mkdtemp(dir=self.tempdir,
+                                   prefix='svnfetch_srcdir_')
+        src_dir = os.path.abspath(src_dir)
+        bb.process.run("echo readme > README.md", cwd=src_dir)
+
+        # Store it in a local SVN repository
+        repo_dir = tempfile.mkdtemp(dir=self.tempdir,
+                                   prefix='svnfetch_localrepo_')
+        repo_dir = os.path.abspath(repo_dir)
+        bb.process.run("svnadmin create project", cwd=repo_dir)
+
+        self.repo_url = "file://%s/project" % repo_dir
+        bb.process.run("svn import --non-interactive -m 'Initial import' %s %s/trunk" % (src_dir, self.repo_url),
+                       cwd=repo_dir)
+
+        bb.process.run("svn co %s svnfetch_co" % self.repo_url, cwd=self.tempdir)
+        # Github will emulate SVN.  Use this to check if we're downloding...
+        bb.process.run("svn propset svn:externals 'bitbake http://github.com/openembedded/bitbake' .",
+                       cwd=os.path.join(self.tempdir, 'svnfetch_co', 'trunk'))
+        bb.process.run("svn commit --non-interactive -m 'Add external'",
+                       cwd=os.path.join(self.tempdir, 'svnfetch_co', 'trunk'))
+
+        self.src_dir = src_dir
+        self.repo_dir = repo_dir
+
+    @skipIfNoSvn()
+    def tearDown(self):
+        os.chdir(self.origdir)
+        if os.environ.get("BB_TMPDIR_NOCLEAN") == "yes":
+            print("Not cleaning up %s. Please remove manually." % self.tempdir)
+        else:
+            bb.utils.prunedir(self.tempdir)
+
+    @skipIfNoSvn()
+    @skipIfNoNetwork()
+    def test_noexternal_svn(self):
+        # Always match the rev count from setUp (currently rev 2)
+        url = "svn://%s;module=trunk;protocol=file;rev=2" % self.repo_url.replace('file://', '')
+        fetcher = bb.fetch.Fetch([url], self.d)
+        fetcher.download()
+        os.chdir(os.path.dirname(self.unpackdir))
+        fetcher.unpack(self.unpackdir)
+
+        self.assertTrue(os.path.exists(os.path.join(self.unpackdir, 'trunk')), msg="Missing trunk")
+        self.assertTrue(os.path.exists(os.path.join(self.unpackdir, 'trunk', 'README.md')), msg="Missing contents")
+        self.assertFalse(os.path.exists(os.path.join(self.unpackdir, 'trunk/bitbake/trunk')), msg="External dir should NOT exist")
+        self.assertFalse(os.path.exists(os.path.join(self.unpackdir, 'trunk/bitbake/trunk', 'README')), msg="External README should NOT exit")
+
+    @skipIfNoSvn()
+    def test_external_svn(self):
+        # Always match the rev count from setUp (currently rev 2)
+        url = "svn://%s;module=trunk;protocol=file;externals=allowed;rev=2" % self.repo_url.replace('file://', '')
+        fetcher = bb.fetch.Fetch([url], self.d)
+        fetcher.download()
+        os.chdir(os.path.dirname(self.unpackdir))
+        fetcher.unpack(self.unpackdir)
+
+        self.assertTrue(os.path.exists(os.path.join(self.unpackdir, 'trunk')), msg="Missing trunk")
+        self.assertTrue(os.path.exists(os.path.join(self.unpackdir, 'trunk', 'README.md')), msg="Missing contents")
+        self.assertTrue(os.path.exists(os.path.join(self.unpackdir, 'trunk/bitbake/trunk')), msg="External dir should exist")
+        self.assertTrue(os.path.exists(os.path.join(self.unpackdir, 'trunk/bitbake/trunk', 'README')), msg="External README should exit")
+
 class TrustedNetworksTest(FetcherTest):
     def test_trusted_network(self):
         # Ensure trusted_network returns False when the host IS in the list.