diff --git a/internal/command/init.go b/internal/command/init.go
index b8ba6b9ff..a44fba3dc 100644
--- a/internal/command/init.go
+++ b/internal/command/init.go
@@ -345,9 +345,10 @@ func (c *InitCommand) getModules(path string, earlyRoot *tfconfig.Module, upgrad
 
 	installAbort, installDiags := c.installModules(path, upgrade, hooks)
 	diags = diags.Append(installDiags)
-	if installAbort || installDiags.HasErrors() {
-		return true, true, diags
-	}
+
+	// At this point, installModules may have generated error diags or been
+	// aborted by SIGINT. In any case we continue and the manifest as best
+	// we can.
 
 	// Since module installer has modified the module manifest on disk, we need
 	// to refresh the cache of it in the loader.
@@ -362,7 +363,7 @@ func (c *InitCommand) getModules(path string, earlyRoot *tfconfig.Module, upgrad
 		}
 	}
 
-	return true, false, diags
+	return true, installAbort, diags
 }
 
 func (c *InitCommand) initCloud(root *configs.Module) (be backend.Backend, output bool, diags tfdiags.Diagnostics) {
diff --git a/internal/command/meta_config.go b/internal/command/meta_config.go
index 0abaf52a7..d19389283 100644
--- a/internal/command/meta_config.go
+++ b/internal/command/meta_config.go
@@ -178,8 +178,6 @@ func (m *Meta) installModules(rootDir string, upgrade bool, hooks initwd.ModuleI
 		diags = diags.Append(fmt.Errorf("failed to create local modules directory: %s", err))
 		return true, diags
 	}
-	// FIXME: KEM: does returning the abort here change behaviour in a particular error
-	// case?
 
 	inst := m.moduleInstaller()