diff --git a/dist/main.cjs b/dist/main.cjs
index 1c7250f..463e9ad 100644
--- a/dist/main.cjs
+++ b/dist/main.cjs
@@ -23305,12 +23305,12 @@ async function getTokenFromEnterprise(request2, auth5, enterprise, permissions)
       }
     });
   } catch (error2) {
-    if (error2.status !== 404) {
-      throw error2;
+    if (error2.status === 404) {
+      throw new Error(
+        `No enterprise installation found matching the name ${enterprise}.`
+      );
     }
-    throw new Error(
-      `No enterprise installation found matching the name ${enterprise}.`
-    );
+    throw error2;
   }
   return createInstallationAuthResult(auth5, response.data, permissions);
 }
diff --git a/lib/main.js b/lib/main.js
index b05b761..c9fc320 100644
--- a/lib/main.js
+++ b/lib/main.js
@@ -220,14 +220,13 @@ async function getTokenFromEnterprise(request, auth, enterprise, permissions) {
       },
     });
   } catch (error) {
-    /* c8 ignore next 3 */
-    if (error.status !== 404) {
-      throw error;
+    if (error.status === 404) {
+      throw new Error(
+        `No enterprise installation found matching the name ${enterprise}.`
+      );
     }
 
-    throw new Error(
-      `No enterprise installation found matching the name ${enterprise}.`
-    );
+    throw error;
   }
 
   // Get token for the enterprise installation
diff --git a/tests/index.js.snapshot b/tests/index.js.snapshot
index 2b250a8..be443b9 100644
--- a/tests/index.js.snapshot
+++ b/tests/index.js.snapshot
@@ -17,6 +17,25 @@ POST /api/v3/app/installations/123456/access_tokens
 {"repositories":["create-github-app-token"]}
 `;
 
+exports[`main-enterprise-fail-response.test.js > stdout 1`] = `
+Creating enterprise installation token for enterprise "test-enterprise".
+Failed to create token for enterprise "test-enterprise" (attempt 1): GitHub API not available
+::add-mask::ghs_16C7e42F292c6912E7710c838347Ae178B4a
+
+::set-output name=token::ghs_16C7e42F292c6912E7710c838347Ae178B4a
+
+::set-output name=installation-id::123456
+
+::set-output name=app-slug::github-actions
+::save-state name=token::ghs_16C7e42F292c6912E7710c838347Ae178B4a
+::save-state name=expiresAt::2016-07-11T22:14:10Z
+--- REQUESTS ---
+GET /enterprises/test-enterprise/installation
+GET /enterprises/test-enterprise/installation
+POST /app/installations/123456/access_tokens
+null
+`;
+
 exports[`main-enterprise-installation-not-found.test.js > stderr 1`] = `
 Error: No enterprise installation found matching the name test-enterprise.
     at getTokenFromEnterprise (file://<cwd>/lib/main.js:<line>:<column>)
diff --git a/tests/main-enterprise-fail-response.test.js b/tests/main-enterprise-fail-response.test.js
new file mode 100644
index 0000000..068e2cb
--- /dev/null
+++ b/tests/main-enterprise-fail-response.test.js
@@ -0,0 +1,39 @@
+import { test } from "./main.js";
+
+// Verify enterprise installation lookup retries when the GitHub API returns a 500 error.
+await test((mockPool) => {
+  process.env.INPUT_ENTERPRISE = "test-enterprise";
+  delete process.env.INPUT_OWNER;
+  delete process.env.INPUT_REPOSITORIES;
+
+  const mockInstallationId = "123456";
+  const mockAppSlug = "github-actions";
+
+  mockPool
+    .intercept({
+      path: "/enterprises/test-enterprise/installation",
+      method: "GET",
+      headers: {
+        accept: "application/vnd.github.v3+json",
+        "user-agent": "actions/create-github-app-token",
+        // Intentionally omitting the `authorization` header, since JWT creation is not idempotent.
+      },
+    })
+    .reply(500, "GitHub API not available");
+
+  mockPool
+    .intercept({
+      path: "/enterprises/test-enterprise/installation",
+      method: "GET",
+      headers: {
+        accept: "application/vnd.github.v3+json",
+        "user-agent": "actions/create-github-app-token",
+        // Intentionally omitting the `authorization` header, since JWT creation is not idempotent.
+      },
+    })
+    .reply(
+      200,
+      { id: mockInstallationId, app_slug: mockAppSlug },
+      { headers: { "content-type": "application/json" } },
+    );
+});