diff --git a/pkgs/compiler-test/tests/compiler/embed/embed-me30.rkt b/pkgs/compiler-test/tests/compiler/embed/embed-me30.rkt
new file mode 100644
index 0000000000..d20865ed02
--- /dev/null
+++ b/pkgs/compiler-test/tests/compiler/embed/embed-me30.rkt
@@ -0,0 +1,4 @@
+#lang racket
+(require "embed-place2.rkt")
+(module+ main
+  (void (sync (place-dead-evt (start-place)))))
diff --git a/pkgs/compiler-test/tests/compiler/embed/embed-place2.rkt b/pkgs/compiler-test/tests/compiler/embed/embed-place2.rkt
new file mode 100644
index 0000000000..e681f62ab5
--- /dev/null
+++ b/pkgs/compiler-test/tests/compiler/embed/embed-place2.rkt
@@ -0,0 +1,7 @@
+#lang racket
+(provide start-place)
+(define (start-place)
+  (place pch
+         (with-output-to-file (build-path (find-system-path 'temp-dir) "stdout")
+           (lambda () (printf "Hello from a place!\n"))
+           #:exists 'append)))
diff --git a/pkgs/compiler-test/tests/compiler/embed/test.rkt b/pkgs/compiler-test/tests/compiler/embed/test.rkt
index 64b691254c..5c5d3f9ae2 100644
--- a/pkgs/compiler-test/tests/compiler/embed/test.rkt
+++ b/pkgs/compiler-test/tests/compiler/embed/test.rkt
@@ -390,6 +390,14 @@
 	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me28.rkt")))
     (try-exe (mk-dest mred?) "28\n" mred?)
 
+    ;; raco exe on a `require`d module with `place` --- test supplied by Chris Vig
+    (system+ raco
+             "exe"
+	     "-o" (path->string (mk-dest mred?))
+	     (if mred? "--gui" "--")
+	     (path->string (build-path (collection-path "tests" "compiler" "embed") "embed-me30.rkt")))
+    (try-exe (mk-dest mred?) "Hello from a place!\n" mred?)
+
     ;; raco exe --launcher
     (system+ raco
              "exe"
diff --git a/racket/collects/compiler/embed.rkt b/racket/collects/compiler/embed.rkt
index 6af647a9cf..07e43c88df 100644
--- a/racket/collects/compiler/embed.rkt
+++ b/racket/collects/compiler/embed.rkt
@@ -570,8 +570,7 @@
                                          code
                                          (module-compiled-name code (last (module-compiled-name code))))]
                        [extract-submods (lambda (l)
-                                          (if (or (null? use-submods)
-                                                  use-source?)
+                                          (if use-source?
                                               null
                                               (for/list ([m (in-list l)]
                                                          #:when (or (member (last (module-compiled-name m)) use-submods)