diff --git a/renku/api/datasets.py b/renku/api/datasets.py
index eacb30a3c6..91a87123a7 100644
--- a/renku/api/datasets.py
+++ b/renku/api/datasets.py
@@ -187,7 +187,12 @@ def add_data_to_dataset(
         # Generate the DatasetFiles
         dataset_files = []
         for data in files:
-            dataset_files.append(DatasetFile.from_revision(self, **data))
+            datasetfile = DatasetFile.from_revision(self, **data)
+
+            # Set dataset file path relative to projects root for submodules
+            if datasetfile.client != self:
+                datasetfile.path = str(data['path'])
+            dataset_files.append(datasetfile)
         dataset.update_files(dataset_files)
 
     def _add_from_url(self, dataset, path, url, link=False, **kwargs):
diff --git a/renku/cli/_format/graph.py b/renku/cli/_format/graph.py
index a49c44f093..e7f6115a9b 100644
--- a/renku/cli/_format/graph.py
+++ b/renku/cli/_format/graph.py
@@ -271,7 +271,7 @@ def color(p):
             fields[sn].add((qname(p, g), formatliteral(o, g)))
 
     for u, n in nodes.items():
-        stream.write(u"# %s %s\n" % (u, n))
+        stream.write(u'# %s %s\n' % (u, n))
         f = [
             '<tr><td align="left"><b>%s</b></td><td align="left">'
             '<b>%s</b></td></tr>' % x for x in sorted(types[n])
diff --git a/renku/models/datasets.py b/renku/models/datasets.py
index 2382b32778..8fc7aa0967 100644
--- a/renku/models/datasets.py
+++ b/renku/models/datasets.py
@@ -88,7 +88,7 @@ def short_name(self):
     def check_email(self, attribute, value):
         """Check that the email is valid."""
         if self.email and not (
-            isinstance(value, str) and re.match(r"[^@]+@[^@]+\.[^@]+", value)
+            isinstance(value, str) and re.match(r'[^@]+@[^@]+\.[^@]+', value)
         ):
             raise ValueError('Email address is invalid.')
 
@@ -465,3 +465,15 @@ def __attrs_post_init__(self):
 
         if not self.path:
             self.path = str(self.client.renku_datasets_path / str(self.uid))
+
+        if self.files:
+            for datasetfile in self.files:
+                if datasetfile.client is None:
+                    client, _, _ = self.client.resolve_in_submodules(
+                        self.client.find_previous_commit(
+                            datasetfile.path, revision='HEAD'
+                        ),
+                        datasetfile.path,
+                    )
+
+                    datasetfile.client = client
diff --git a/renku/models/provenance/agents.py b/renku/models/provenance/agents.py
index fba38d14cb..c6ee2c7f15 100644
--- a/renku/models/provenance/agents.py
+++ b/renku/models/provenance/agents.py
@@ -54,7 +54,7 @@ def default_id(self):
     @email.validator
     def check_email(self, attribute, value):
         """Check that the email is valid."""
-        if not (isinstance(value, str) and re.match(r"[^@]+@[^@]+", value)):
+        if not (isinstance(value, str) and re.match(r'[^@]+@[^@]+', value)):
             raise ValueError('Email address "{0}" is invalid.'.format(value))
 
     @classmethod
diff --git a/tests/cli/test_datasets.py b/tests/cli/test_datasets.py
index b07df83b72..a088ad72a5 100644
--- a/tests/cli/test_datasets.py
+++ b/tests/cli/test_datasets.py
@@ -440,6 +440,39 @@ def test_dataset_add_with_copy(tmpdir, runner, project, client):
         assert inode not in original_inodes
 
 
+def test_dataset_file_path_from_subdirectory(runner, project, client):
+    """Test adding a file into a dataset and check path independent
+    of the CWD """
+    # create a dataset
+    result = runner.invoke(cli.cli, ['dataset', 'create', 'dataset'])
+    assert 0 == result.exit_code
+    assert 'OK' in result.output
+
+    with (client.path / 'a').open('w') as fp:
+        fp.write('a')
+
+    client.repo.git.add('a')
+    client.repo.git.commit(message='Added file a')
+
+    # add data
+    result = runner.invoke(
+        cli.cli,
+        ['dataset', 'add', 'dataset', 'a'],
+        catch_exceptions=False,
+    )
+    assert 0 == result.exit_code
+
+    with client.with_dataset('dataset') as dataset:
+        datasetfile = dataset.find_file('a')
+        assert datasetfile
+
+        assert datasetfile.full_path == client.path / 'a'
+
+        os.chdir('./data')
+
+        assert datasetfile.full_path == client.path / 'a'
+
+
 def test_datasets_ls_files_tabular_empty(runner, project):
     """Test listing of data within empty dataset."""
     # create a dataset