diff --git a/pkg/iac/scanners/terraform/parser/parser.go b/pkg/iac/scanners/terraform/parser/parser.go
index aec5ce0c31d7..fa511fed54c2 100644
--- a/pkg/iac/scanners/terraform/parser/parser.go
+++ b/pkg/iac/scanners/terraform/parser/parser.go
@@ -268,7 +268,10 @@ func (p *Parser) EvaluateAll(ctx context.Context) (terraform.Modules, cty.Value,
 	e, err := p.Load(ctx)
 	if errors.Is(err, ErrNoFiles) {
 		return nil, cty.NilVal, nil
+	} else if err != nil {
+		return nil, cty.NilVal, err
 	}
+
 	modules, fsMap := e.EvaluateAll(ctx)
 	p.debug.Log("Finished parsing module '%s'.", p.moduleName)
 	p.fsMap = fsMap
diff --git a/pkg/iac/scanners/terraform/parser/parser_test.go b/pkg/iac/scanners/terraform/parser/parser_test.go
index 3d25b5518b46..10232b007fd9 100644
--- a/pkg/iac/scanners/terraform/parser/parser_test.go
+++ b/pkg/iac/scanners/terraform/parser/parser_test.go
@@ -6,6 +6,7 @@ import (
 	"path/filepath"
 	"sort"
 	"testing"
+	"testing/fstest"
 
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
@@ -1725,3 +1726,22 @@ func Test_LoadLocalCachedModule(t *testing.T) {
 	bucketName := buckets[0].GetAttribute("bucket").Value().AsString()
 	assert.Equal(t, "my-s3-bucket", bucketName)
 }
+
+func TestTFVarsFileDoesNotExist(t *testing.T) {
+	fsys := fstest.MapFS{
+		"main.tf": &fstest.MapFile{
+			Data: []byte(``),
+		},
+	}
+
+	parser := New(
+		fsys, "",
+		OptionStopOnHCLError(true),
+		OptionWithDownloads(false),
+		OptionWithTFVarsPaths("main.tfvars"),
+	)
+	require.NoError(t, parser.ParseFS(context.TODO(), "."))
+
+	_, _, err := parser.EvaluateAll(context.TODO())
+	assert.ErrorContains(t, err, "file does not exist")
+}