diff --git a/mercurial/subrepo.py b/mercurial/subrepo.py
--- a/mercurial/subrepo.py
+++ b/mercurial/subrepo.py
@@ -996,11 +996,25 @@ class hgsubrepo(abstractsubrepo):
                                   update=False, bookmarks=False)
                 self._repo = shared.local()
             else:
+                # TODO: find a common place for this and this code in the
+                # share.py wrap of the clone command.
+                if parentrepo.shared():
+                    pool = self.ui.config('share', 'pool')
+                    if pool:
+                        pool = util.expandpath(pool)
+
+                    shareopts = {
+                        'pool': pool,
+                        'mode': self.ui.config('share', 'poolnaming'),
+                    }
+                else:
+                    shareopts = {}
+
                 self.ui.status(_('cloning subrepo %s from %s\n')
                                % (subrelpath(self), srcurl))
                 other, cloned = hg.clone(self._repo._subparent.baseui, {},
                                          other, self._repo.root,
-                                         update=False)
+                                         update=False, shareopts=shareopts)
                 self._repo = cloned.local()
             self._initrepo(parentrepo, source, create=True)
             self._cachestorehash(srcurl)
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
@@ -292,8 +292,8 @@ Status between revisions:
   z2
   z3
 
-BUG: The remote subrepo should be cloned to the local pool, and then shared
-from there.
+Clone pooling from a remote URL will share the top level repo and the subrepos,
+even if they are referenced by remote URL.
 
   $ hg --config extensions.share= --config share.pool=$TESTTMP/pool \
   >    clone http://localhost:$HGPORT shared
@@ -308,19 +308,25 @@ from there.
   no changes found
   updating working directory
   cloning subrepo foo from http://localhost:$HGPORT/foo
+  (sharing from new pooled repository af048e97ade2e236f754f05d07013e586af0f8bf)
   requesting all changes
   adding changesets
   adding manifests
   adding file changes
   added 4 changesets with 7 changes to 3 files
   new changesets af048e97ade2:65903cebad86
+  searching for changes
+  no changes found
   cloning subrepo foo/bar from http://localhost:$HGPORT/foo/bar
+  (sharing from new pooled repository 4904098473f96c900fec436dad267edd4da59fad)
   requesting all changes
   adding changesets
   adding manifests
   adding file changes
   added 3 changesets with 3 changes to 1 files
   new changesets 4904098473f9:31ecbdafd357
+  searching for changes
+  no changes found
   3 files updated, 0 files merged, 0 files removed, 0 files unresolved
 
   $ cat access.log
@@ -341,11 +347,19 @@ from there.
   $LOCALIP - - [$LOGDATE$] "GET /?cmd=batch HTTP/1.1" 200 - x-hgarg-1:cmds=heads+%3Bknown+nodes%3D1326fa26d0c00d2146c63b56bb6a45149d7325ac x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
   $LOCALIP - - [$LOGDATE$] "GET /?cmd=getbundle HTTP/1.1" 200 - x-hgarg-1:bookmarks=1&$USUAL_BUNDLE_CAPS$&cg=0&common=1326fa26d0c00d2146c63b56bb6a45149d7325ac&heads=1326fa26d0c00d2146c63b56bb6a45149d7325ac&listkeys=bookmarks&phases=1 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
   $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=capabilities HTTP/1.1" 200 - (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=0 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=capabilities HTTP/1.1" 200 - (glob)
   $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=batch HTTP/1.1" 200 - x-hgarg-1:cmds=heads+%3Bknown+nodes%3D x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
   $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=getbundle HTTP/1.1" 200 - x-hgarg-1:bookmarks=1&$USUAL_BUNDLE_CAPS$&cg=1&common=0000000000000000000000000000000000000000&heads=65903cebad86f1a84bd4f1134f62fa7dcb7a1c98&listkeys=bookmarks&phases=1 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=batch HTTP/1.1" 200 - x-hgarg-1:cmds=heads+%3Bknown+nodes%3D65903cebad86f1a84bd4f1134f62fa7dcb7a1c98 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo?cmd=getbundle HTTP/1.1" 200 - x-hgarg-1:bookmarks=1&$USUAL_BUNDLE_CAPS$&cg=0&common=65903cebad86f1a84bd4f1134f62fa7dcb7a1c98&heads=65903cebad86f1a84bd4f1134f62fa7dcb7a1c98&listkeys=bookmarks&phases=1 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=capabilities HTTP/1.1" 200 - (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=0 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
   $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=capabilities HTTP/1.1" 200 - (glob)
   $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=batch HTTP/1.1" 200 - x-hgarg-1:cmds=heads+%3Bknown+nodes%3D x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
   $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=getbundle HTTP/1.1" 200 - x-hgarg-1:bookmarks=1&$USUAL_BUNDLE_CAPS$&cg=1&common=0000000000000000000000000000000000000000&heads=31ecbdafd357f54b281c9bd1d681bb90de219e22&listkeys=bookmarks&phases=1 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=batch HTTP/1.1" 200 - x-hgarg-1:cmds=heads+%3Bknown+nodes%3D31ecbdafd357f54b281c9bd1d681bb90de219e22 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
+  $LOCALIP - - [$LOGDATE$] "GET /foo/bar?cmd=getbundle HTTP/1.1" 200 - x-hgarg-1:bookmarks=1&$USUAL_BUNDLE_CAPS$&cg=0&common=31ecbdafd357f54b281c9bd1d681bb90de219e22&heads=31ecbdafd357f54b281c9bd1d681bb90de219e22&listkeys=bookmarks&phases=1 x-hgproto-1:0.1 0.2 comp=$USUAL_COMPRESSIONS$ (glob)
 
   $ killdaemons.py
   $ rm hg1.pid error.log access.log
diff --git a/tests/test-subrepo-relative-path.t b/tests/test-subrepo-relative-path.t
--- a/tests/test-subrepo-relative-path.t
+++ b/tests/test-subrepo-relative-path.t
@@ -84,9 +84,9 @@ Test sharing with a remote URL reference
   adding .hgsub
   $ cd ..
 
-Clone pooling works for local clones with a remote subrepo reference.
-
-BUG: subrepos should be shared out of the pool.
+Clone pooling works for local clones with a remote subrepo reference.  The
+subrepo is cloned to the pool and shared from there, so that all clones will
+share the same subrepo.
 
   $ hg --config extensions.share= --config share.pool=$TESTTMP/pool \
   >    clone absolute_subrepo cloned_from_abs
@@ -101,12 +101,15 @@ BUG: subrepos should be shared out of th
   no changes found
   updating working directory
   cloning subrepo sub from http://localhost:$HGPORT/sub
+  (sharing from new pooled repository 863c1745b441bd97a8c4a096e87793073f4fb215)
   requesting all changes
   adding changesets
   adding manifests
   adding file changes
   added 1 changesets with 1 changes to 1 files
   new changesets 863c1745b441
+  searching for changes
+  no changes found
   3 files updated, 0 files merged, 0 files removed, 0 files unresolved
 
 Vanilla sharing with a subrepo remote path reference will clone the subrepo.