diff --git a/CHANGELOG.md b/CHANGELOG.md
index c0035eb2e..d66bd4b3d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,10 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 
 ## Unreleased
 
+### Fixed
+
+- Unclear error when running `phylum init` with an invalid organization
+
 ## 7.3.0 - 2024-12-20
 
 ### Added
diff --git a/cli/src/commands/init.rs b/cli/src/commands/init.rs
index 53da76457..52bd378ca 100644
--- a/cli/src/commands/init.rs
+++ b/cli/src/commands/init.rs
@@ -15,7 +15,7 @@ use reqwest::StatusCode;
 use crate::api::{PhylumApi, PhylumApiError, ResponseError};
 use crate::commands::{project, CommandResult, ExitCode};
 use crate::config::{self, Config};
-use crate::{print_user_success, print_user_warning};
+use crate::{print_user_failure, print_user_success, print_user_warning};
 
 /// Handle `phylum init` subcommand.
 pub async fn handle_init(api: &PhylumApi, matches: &ArgMatches, config: Config) -> CommandResult {
@@ -44,7 +44,15 @@ pub async fn handle_init(api: &PhylumApi, matches: &ArgMatches, config: Config)
     let org = config.org();
     let groups: Vec<_> = match org {
         Some(org) => {
-            api.org_groups(org).await?.groups.into_iter().map(|group| group.name).collect()
+            let org_groups = match api.org_groups(org).await {
+                Ok(org_groups) => org_groups,
+                Err(err) if err.status() == Some(StatusCode::NOT_FOUND) => {
+                    print_user_failure!("Organization {org:?} does not exist.");
+                    return Ok(ExitCode::NotFound);
+                },
+                Err(err) => return Err(err.into()),
+            };
+            org_groups.groups.into_iter().map(|group| group.name).collect()
         },
         None => {
             api.get_groups_list().await?.groups.into_iter().map(|group| group.group_name).collect()