diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -2672,7 +2672,13 @@ def outgoing(ui, repo, dest=None, **opts
 
     Returns 0 if there are outgoing changes, 1 otherwise.
     """
-    return hg.outgoing(ui, repo, dest, opts)
+    ret = hg.outgoing(ui, repo, dest, opts)
+    if opts.get('subrepos'):
+        ctx = repo[None]
+        for subpath in sorted(ctx.substate):
+            sub = ctx.sub(subpath)
+            ret = min(ret, sub.outgoing(ui, dest, opts))
+    return ret
 
 def parents(ui, repo, file_=None, **opts):
     """show the parents of the working directory or revision
@@ -4311,7 +4317,7 @@ table = {
           ('n', 'newest-first', None, _('show newest record first')),
           ('b', 'branch', [],
            _('a specific branch you would like to push'), _('BRANCH')),
-         ] + logopts + remoteopts,
+         ] + logopts + remoteopts + subrepoopts,
          _('[-M] [-p] [-n] [-f] [-r REV]... [DEST]')),
     "parents":
         (parents,
diff --git a/mercurial/subrepo.py b/mercurial/subrepo.py
--- a/mercurial/subrepo.py
+++ b/mercurial/subrepo.py
@@ -264,6 +264,9 @@ class abstractsubrepo(object):
     def diff(self, diffopts, node2, match, prefix, **opts):
         pass
 
+    def outgoing(self, ui, dest, opts):
+        return 1
+
 class hgsubrepo(abstractsubrepo):
     def __init__(self, ctx, path, state):
         self._path = path
@@ -394,6 +397,9 @@ class hgsubrepo(abstractsubrepo):
         other = hg.repository(self._repo.ui, dsturl)
         return self._repo.push(other, force)
 
+    def outgoing(self, ui, dest, opts):
+        return hg.outgoing(ui, self._repo, _abssource(self._repo, True), opts)
+
 class svnsubrepo(abstractsubrepo):
     def __init__(self, ctx, path, state):
         self._path = path
diff --git a/tests/test-debugcomplete.t b/tests/test-debugcomplete.t
--- a/tests/test-debugcomplete.t
+++ b/tests/test-debugcomplete.t
@@ -230,7 +230,7 @@ Show all commands + options
   incoming: force, newest-first, bundle, rev, branch, patch, git, limit, no-merges, stat, style, template, ssh, remotecmd
   locate: rev, print0, fullpath, include, exclude
   manifest: rev
-  outgoing: force, rev, newest-first, branch, patch, git, limit, no-merges, stat, style, template, ssh, remotecmd
+  outgoing: force, rev, newest-first, branch, patch, git, limit, no-merges, stat, style, template, ssh, remotecmd, subrepos
   parents: rev, style, template
   paths: 
   recover: 
diff --git a/tests/test-subrepo-recursion.t b/tests/test-subrepo-recursion.t
--- a/tests/test-subrepo-recursion.t
+++ b/tests/test-subrepo-recursion.t
@@ -6,7 +6,8 @@ Make status look into subrepositories by
 
 Create test repository:
 
-  $ hg init
+  $ hg init repo
+  $ cd repo
   $ echo x1 > x.txt
 
   $ hg init foo
@@ -225,3 +226,64 @@ Status between revisions:
   @@ -1,1 +1,2 @@
    z1
   +z2
+
+Clone and test outgoing:
+
+  $ cd ..
+  $ hg clone repo repo2
+  updating to branch default
+  pulling subrepo foo from .*/test-subrepo-recursion.t/repo/foo
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 4 changesets with 7 changes to 3 files
+  pulling subrepo foo/bar from .*/test-subrepo-recursion.t/repo/foo/bar
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 3 changesets with 3 changes to 1 files
+  3 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ cd repo2
+  $ hg outgoing -S
+  comparing with .*/test-subrepo-recursion.t/repo
+  searching for changes
+  no changes found
+  comparing with .*/test-subrepo-recursion.t/repo/foo
+  searching for changes
+  no changes found
+  $ echo $?
+  0
+
+Make nested change:
+
+  $ echo y4 >> foo/y.txt
+  $ hg diff
+  diff -r 65903cebad86 foo/y.txt
+  --- a/foo/y.txt
+  +++ b/foo/y.txt
+  @@ -1,3 +1,4 @@
+   y1
+   y2
+   y3
+  +y4
+  $ hg commit -m 3-4-2
+  committing subrepository foo
+  $ hg outgoing -S
+  comparing with .*/test-subrepo-recursion.t/repo
+  searching for changes
+  changeset:   3:2655b8ecc4ee
+  tag:         tip
+  user:        test
+  date:        Thu Jan 01 00:00:00 1970 +0000
+  summary:     3-4-2
+  
+  comparing with .*/test-subrepo-recursion.t/repo/foo
+  searching for changes
+  changeset:   4:e96193d6cb36
+  tag:         tip
+  user:        test
+  date:        Thu Jan 01 00:00:00 1970 +0000
+  summary:     3-4-2
+