diff --git a/CMakeLists.txt b/CMakeLists.txt
index a97b7a59ee6..23f3748b726 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -49,8 +49,9 @@ project(${PACKAGE_NAME} C CXX)
 option(gRPC_BUILD_TESTS "Build tests" OFF)
 
 set(gRPC_INSTALL_default ON)
-if (MSVC)
-    set(gRPC_INSTALL_default OFF)
+if (NOT CMAKE_SOURCE_DIR STREQUAL CMAKE_CURRENT_SOURCE_DIR)
+  # Disable gRPC_INSTALL by default if building as a submodule
+  set(gRPC_INSTALL_default OFF)
 endif()
 set(gRPC_INSTALL ${gRPC_INSTALL_default} CACHE BOOL
     "Generate installation target: gRPC_ZLIB_PROVIDER, gRPC_CARES_PROVIDER, gRPC_SSL_PROVIDER and gRPC_PROTOBUF_PROVIDER must all be \"package\"")
diff --git a/templates/CMakeLists.txt.template b/templates/CMakeLists.txt.template
index c792877b049..0719b3688f3 100644
--- a/templates/CMakeLists.txt.template
+++ b/templates/CMakeLists.txt.template
@@ -93,8 +93,9 @@
   option(gRPC_BUILD_TESTS "Build tests" OFF)
 
   set(gRPC_INSTALL_default ON)
-  if (MSVC)
-      set(gRPC_INSTALL_default OFF)
+  if (NOT CMAKE_SOURCE_DIR STREQUAL CMAKE_CURRENT_SOURCE_DIR)
+    # Disable gRPC_INSTALL by default if building as a submodule
+    set(gRPC_INSTALL_default OFF)
   endif()
   set(gRPC_INSTALL <%text>${gRPC_INSTALL_default}</%text> CACHE BOOL
       "Generate installation target: gRPC_ZLIB_PROVIDER, gRPC_CARES_PROVIDER, gRPC_SSL_PROVIDER and gRPC_PROTOBUF_PROVIDER must all be \"package\"")