diff --git a/src/commands.rs b/src/commands.rs
index 057083e0d..210d2b3a0 100644
--- a/src/commands.rs
+++ b/src/commands.rs
@@ -1037,12 +1037,14 @@ fn cmd_init(ui: &mut Ui, command: &CommandHelper, args: &InitArgs) -> Result<(),
         ));
     }
     let wc_path = ui.cwd().join(&args.destination);
-    if wc_path.exists() {
-        assert!(wc_path.is_dir());
-    } else {
-        fs::create_dir(&wc_path).unwrap();
+    match fs::create_dir(&wc_path) {
+        Ok(()) => {}
+        Err(_) if wc_path.is_dir() => {}
+        Err(e) => return Err(UserError(format!("Failed to create workspace: {e}"))),
     }
-    let wc_path = wc_path.canonicalize().unwrap();
+    let wc_path = wc_path
+        .canonicalize()
+        .map_err(|e| UserError(format!("Failed to create workspace: {e}")))?; // raced?
 
     if let Some(git_store_str) = &args.git_repo {
         let mut git_store_path = ui.cwd().join(git_store_str);
diff --git a/tests/test_init_command.rs b/tests/test_init_command.rs
index 660e55b83..4994a6359 100644
--- a/tests/test_init_command.rs
+++ b/tests/test_init_command.rs
@@ -173,6 +173,14 @@ fn test_init_git_internal_but_could_be_colocated() {
     "###);
 }
 
+#[test]
+fn test_init_git_bad_wc_path() {
+    let test_env = TestEnvironment::default();
+    std::fs::write(test_env.env_root().join("existing-file"), b"").unwrap();
+    let stderr = test_env.jj_cmd_failure(test_env.env_root(), &["init", "--git", "existing-file"]);
+    assert!(stderr.contains("Failed to create workspace"));
+}
+
 #[test]
 fn test_init_local_disallowed() {
     let test_env = TestEnvironment::default();