diff --git a/packages/cli/src/commands/init/__tests__/init.test.ts b/packages/cli/src/commands/init/__tests__/init.test.ts
new file mode 100644
index 000000000..62af44f84
--- /dev/null
+++ b/packages/cli/src/commands/init/__tests__/init.test.ts
@@ -0,0 +1,16 @@
+import initialize from '../init';
+import * as npm from '../../../tools/npm';
+import * as yarn from '../../../tools/yarn';
+
+afterEach(() => {
+  jest.restoreAllMocks();
+});
+
+test('rejects when the requested package manager is unavailable', async () => {
+  jest.spyOn(npm, 'npmResolveConcreteVersion').mockResolvedValue('0.76.0');
+  jest.spyOn(yarn, 'getYarnVersionIfAvailable').mockReturnValue(null);
+
+  await expect(initialize(['TestApp'], {pm: 'yarn'})).rejects.toThrowError(
+    'Seems like the package manager you want to use is not installed.',
+  );
+});
diff --git a/packages/cli/src/commands/init/init.ts b/packages/cli/src/commands/init/init.ts
index 20be2d731..d01547dca 100644
--- a/packages/cli/src/commands/init/init.ts
+++ b/packages/cli/src/commands/init/init.ts
@@ -498,10 +498,9 @@ export default (async function initialize(
   const projectFolder = path.join(root, directoryName);
 
   if (options.pm && !checkPackageManagerAvailability(options.pm)) {
-    logger.error(
+    throw new CLIError(
       'Seems like the package manager you want to use is not installed. Please install it or choose another package manager.',
     );
-    return;
   }
 
   let shouldBumpYarnVersion = true;