diff --git a/.changeset/silent-experts-sip.md b/.changeset/silent-experts-sip.md
new file mode 100644
index 000000000000..ce1ca3e291fe
--- /dev/null
+++ b/.changeset/silent-experts-sip.md
@@ -0,0 +1,5 @@
+---
+'create-astro': patch
+---
+
+Fixes an issue where a successful "Dependencies installed" message is displayed even when installing dependencies fails.
diff --git a/packages/create-astro/package.json b/packages/create-astro/package.json
index 4f78989fbc84..d19ef1e4f4ae 100644
--- a/packages/create-astro/package.json
+++ b/packages/create-astro/package.json
@@ -31,7 +31,7 @@
   "//a": "MOST PACKAGES SHOULD GO IN DEV_DEPENDENCIES! THEY WILL BE BUNDLED.",
   "//b": "DEPENDENCIES IS FOR UNBUNDLED PACKAGES",
   "dependencies": {
-    "@astrojs/cli-kit": "^0.3.0",
+    "@astrojs/cli-kit": "^0.3.1",
     "giget": "1.1.2"
   },
   "devDependencies": {
diff --git a/packages/create-astro/src/actions/dependencies.ts b/packages/create-astro/src/actions/dependencies.ts
index 1e731099c010..e920fcf8e482 100644
--- a/packages/create-astro/src/actions/dependencies.ts
+++ b/packages/create-astro/src/actions/dependencies.ts
@@ -27,17 +27,16 @@ export async function dependencies(
 		await spinner({
 			start: `Installing dependencies with ${ctx.packageManager}...`,
 			end: 'Dependencies installed',
-			while: () => {
-				return install({ packageManager: ctx.packageManager, cwd: ctx.cwd }).catch((e) => {
-					error('error', e);
-					error(
-						'error',
-						`Dependencies failed to install, please run ${color.bold(
-							ctx.packageManager + ' install'
-						)}  to install them manually after setup.`
-					);
-				});
+			onError: (e) => {
+				error('error', e);
+				error(
+					'error',
+					`Dependencies failed to install, please run ${color.bold(
+						ctx.packageManager + ' install'
+					)} to install them manually after setup.`
+				);
 			},
+			while: () => install({ packageManager: ctx.packageManager, cwd: ctx.cwd }),
 		});
 	} else {
 		await info(
diff --git a/packages/create-astro/src/messages.ts b/packages/create-astro/src/messages.ts
index 29c551883a74..09675740a1f9 100644
--- a/packages/create-astro/src/messages.ts
+++ b/packages/create-astro/src/messages.ts
@@ -31,6 +31,7 @@ export async function say(messages: string | string[], { clear = false, hat = ''
 export async function spinner(args: {
 	start: string;
 	end: string;
+	onError?: (error: any) => void;
 	while: (...args: any) => Promise<any>;
 }) {
 	await load(args, { stdout });
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index b6b915936f29..322d1a4f7717 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -3700,8 +3700,8 @@ importers:
   packages/create-astro:
     dependencies:
       '@astrojs/cli-kit':
-        specifier: ^0.3.0
-        version: 0.3.0
+        specifier: ^0.3.1
+        version: 0.3.1
       giget:
         specifier: 1.1.2
         version: 1.1.2
@@ -5166,8 +5166,8 @@ packages:
       - prettier-plugin-astro
     dev: true
 
-  /@astrojs/cli-kit@0.3.0:
-    resolution: {integrity: sha512-nil0Kz2xuzR3xQX+FVHg2W8g+FvbeUeoCeU53duQjAFuHRJrbqWRmgfjYeM6f2780dsSuGiYMXmY+IaJqaqiaw==}
+  /@astrojs/cli-kit@0.3.1:
+    resolution: {integrity: sha512-BEzf3gudr4XrrrInJKD+GSS5O+GXRTukLUpOfgqdTSq6d48EWVhigNHobmlQGbpa9FEAw+sZmvmHmhS29QhnwA==}
     engines: {node: '>=18.14.1'}
     dependencies:
       chalk: 5.3.0