diff --git a/lerna.json b/lerna.json
index 2c85738f2b..b1461b29c0 100644
--- a/lerna.json
+++ b/lerna.json
@@ -1,5 +1,5 @@
 {
-  "version": "2.17.0-SNAPSHOT",
+  "version": "2.16.3",
   "command": {
     "version": {
       "forcePublish": true,
diff --git a/packages/zowe-explorer/CHANGELOG.md b/packages/zowe-explorer/CHANGELOG.md
index 3d28d9358a..3307e7e6b3 100644
--- a/packages/zowe-explorer/CHANGELOG.md
+++ b/packages/zowe-explorer/CHANGELOG.md
@@ -8,6 +8,8 @@ All notable changes to the "vscode-extension-for-zowe" extension will be documen
 
 ### Bug fixes
 
+- Fixed issue where USS files could not be submitted as JCL. [#2991](https://github.com/zowe/zowe-explorer-vscode/issues/2991)
+
 ## `2.16.2`
 
 ### Bug fixes
diff --git a/packages/zowe-explorer/__tests__/__unit__/job/actions.unit.test.ts b/packages/zowe-explorer/__tests__/__unit__/job/actions.unit.test.ts
index 7caf175676..70640f3bbf 100644
--- a/packages/zowe-explorer/__tests__/__unit__/job/actions.unit.test.ts
+++ b/packages/zowe-explorer/__tests__/__unit__/job/actions.unit.test.ts
@@ -46,6 +46,7 @@ import { ProfileManagement } from "../../../src/utils/ProfileManagement";
 import { TreeProviders } from "../../../src/shared/TreeProviders";
 import { mocked } from "../../../__mocks__/mockUtils";
 import { TreeViewUtils } from "../../../src/utils/TreeViewUtils";
+import * as path from "path";
 
 const activeTextEditorDocument = jest.fn();
 
@@ -423,8 +424,6 @@ describe("Jobs Actions Unit Tests - Function submitJcl", () => {
         const imperativeProfile = createIProfile();
         const datasetSessionNode = createDatasetSessionNode(session, imperativeProfile);
         const textDocument = createTextDocument("HLQ.TEST.AFILE(mem)", datasetSessionNode);
-        (textDocument.languageId as any) = "jcl";
-        (textDocument.uri.fsPath as any) = "/user/temp/textdocument.txt";
         const profileInstance = createInstanceOfProfile(imperativeProfile);
         const jesApi = createJesApi(imperativeProfile);
         const mockCheckCurrentProfile = jest.fn();
@@ -651,22 +650,25 @@ describe("Jobs Actions Unit Tests - Function submitJcl", () => {
         expect(showMessagespy).toBeCalledWith("No profiles available");
     });
     it("Getting session name from the path itself", async () => {
-        globals.defineGlobals("/user/");
+        globals.defineGlobals(__dirname);
         createGlobalMocks();
         const blockMocks: any = createBlockMocks();
         mocked(zowe.ZosmfSession.createSessCfgFromArgs).mockReturnValue(blockMocks.session);
         mocked(Profiles.getInstance).mockReturnValue(blockMocks.profileInstance);
+        const loadNamedProfileSpy = jest.spyOn(blockMocks.profileInstance, "loadNamedProfile");
         blockMocks.testDatasetTree.getChildren.mockResolvedValueOnce([
             new ZoweDatasetNode({ label: "node", collapsibleState: vscode.TreeItemCollapsibleState.None, parentNode: blockMocks.datasetSessionNode }),
             blockMocks.datasetSessionNode,
         ]);
-        blockMocks.datasetSessionNode.label = "temp";
+        blockMocks.textDocument.fileName = path.join(globals.USS_DIR, "lpar1_zosmf", "file.txt");
+        blockMocks.textDocument.uri = vscode.Uri.file(blockMocks.textDocument.fileName);
         activeTextEditorDocument.mockReturnValue(blockMocks.textDocument);
         const submitJclSpy = jest.spyOn(blockMocks.jesApi, "submitJcl");
         submitJclSpy.mockClear();
         submitJclSpy.mockResolvedValueOnce(blockMocks.iJob);
         await dsActions.submitJcl(blockMocks.testDatasetTree, undefined);
 
+        expect(loadNamedProfileSpy).toBeCalledWith("lpar1_zosmf");
         expect(submitJclSpy).toBeCalled();
         expect(mocked(Gui.showMessage)).toBeCalled();
         expect(mocked(Gui.showMessage).mock.calls.length).toBe(1);
diff --git a/packages/zowe-explorer/src/dataset/actions.ts b/packages/zowe-explorer/src/dataset/actions.ts
index e97ce2d4b6..b65cfd954f 100644
--- a/packages/zowe-explorer/src/dataset/actions.ts
+++ b/packages/zowe-explorer/src/dataset/actions.ts
@@ -933,39 +933,30 @@ export async function submitJcl(datasetProvider: api.IZoweTree<api.IZoweDatasetT
     }
 
     // get session name
-    const sessionregex = /\[(.*)(\])(?!.*\])/;
-    const regExp = sessionregex.exec(doc.fileName);
     const profiles = Profiles.getInstance();
     let sessProfileName;
-    if (regExp === null) {
-        if (!doc.uri.fsPath.includes(globals.ZOWETEMPFOLDER)) {
-            const profileNamesList = ProfileManagement.getRegisteredProfileNameList(globals.Trees.JES);
-            if (profileNamesList.length > 1) {
-                const quickPickOptions: vscode.QuickPickOptions = {
-                    placeHolder: localize("submitJcl.qp.placeholder", "Select the Profile to use to submit the job"),
-                    ignoreFocusOut: true,
-                    canPickMany: false,
-                };
-                sessProfileName = await api.Gui.showQuickPick(profileNamesList, quickPickOptions);
-                if (!sessProfileName) {
-                    api.Gui.infoMessage(localizedStrings.opCancelled);
-                    return;
-                }
-            } else if (profileNamesList.length > 0) {
-                sessProfileName = profileNamesList[0];
-            } else {
-                api.Gui.showMessage(localize("submitJcl.noProfile", "No profiles available"));
+    if (!doc.uri.fsPath.includes(globals.ZOWETEMPFOLDER)) {
+        const profileNamesList = ProfileManagement.getRegisteredProfileNameList(globals.Trees.JES);
+        if (profileNamesList.length > 1) {
+            const quickPickOptions: vscode.QuickPickOptions = {
+                placeHolder: localize("submitJcl.qp.placeholder", "Select the Profile to use to submit the job"),
+                ignoreFocusOut: true,
+                canPickMany: false,
+            };
+            sessProfileName = await api.Gui.showQuickPick(profileNamesList, quickPickOptions);
+            if (!sessProfileName) {
+                api.Gui.infoMessage(localizedStrings.opCancelled);
+                return;
             }
+        } else if (profileNamesList.length > 0) {
+            sessProfileName = profileNamesList[0];
         } else {
-            const filePathArray = doc.uri.fsPath.split(path.sep);
-            sessProfileName = filePathArray[filePathArray.length - 2];
+            api.Gui.showMessage(localize("submitJcl.noProfile", "No profiles available"));
         }
     } else {
-        sessProfileName = regExp[1];
-        if (sessProfileName.includes("[")) {
-            // if submitting from favorites, sesName might be the favorite node, so extract further
-            sessProfileName = sessionregex.exec(sessProfileName)[1];
-        }
+        const start = path.join(globals.ZOWETEMPFOLDER + path.sep).length;
+        const pathSegments = doc.fileName.substring(start).split(path.sep);
+        sessProfileName = pathSegments[1];
     }
 
     // get profile from session name