diff --git a/cmd/soroban-cli/src/config/locator.rs b/cmd/soroban-cli/src/config/locator.rs
index fdeeb4664..268990a8e 100644
--- a/cmd/soroban-cli/src/config/locator.rs
+++ b/cmd/soroban-cli/src/config/locator.rs
@@ -504,8 +504,10 @@ impl Args {
 
 pub fn print_deprecation_warning(dir: &Path) {
     let print = Print::new(false);
-    let global_dir = global_config_path().expect("Couldn't retrieve global directory.");
-    let global_dir = fs::canonicalize(&global_dir).expect("Couldn't expand global directory.");
+    let Ok(global_dir) = global_config_path() else {
+        return;
+    };
+    let global_dir = fs::canonicalize(&global_dir).unwrap_or(global_dir);
 
     // No warning if local and global dirs are the same (e.g., both set to STELLAR_CONFIG_HOME)
     if dir == global_dir {
@@ -843,6 +845,7 @@ pub fn cli_config_file() -> Result<PathBuf, Error> {
 #[cfg(all(test, unix))]
 mod tests {
     use super::*;
+    use serial_test::serial;
     use std::collections::HashMap;
 
     #[test]
@@ -884,4 +887,47 @@ mod tests {
             perms.mode() & 0o777
         );
     }
+
+    struct EnvGuard(Vec<(String, Option<String>)>);
+
+    impl EnvGuard {
+        fn new(vars: &[&str]) -> Self {
+            let saved = vars
+                .iter()
+                .map(|k| (k.to_string(), std::env::var(k).ok()))
+                .collect();
+            Self(saved)
+        }
+    }
+
+    impl Drop for EnvGuard {
+        fn drop(&mut self) {
+            for (k, v) in &self.0 {
+                match v {
+                    Some(val) => std::env::set_var(k, val),
+                    None => std::env::remove_var(k),
+                }
+            }
+        }
+    }
+
+    #[test]
+    #[serial]
+    fn test_print_deprecation_warning_no_panic_when_global_dir_missing() {
+        let tmp = tempfile::tempdir().unwrap();
+        let _guard = EnvGuard::new(&["STELLAR_CONFIG_HOME", "XDG_CONFIG_HOME", "HOME"]);
+
+        std::env::remove_var("STELLAR_CONFIG_HOME");
+        std::env::remove_var("XDG_CONFIG_HOME");
+
+        let fake_home = tmp.path().join("home");
+        std::fs::create_dir_all(&fake_home).unwrap();
+        std::env::set_var("HOME", &fake_home);
+
+        let local_dir = tmp.path().join("workdir/.stellar");
+        std::fs::create_dir_all(&local_dir).unwrap();
+
+        // Must not panic even though ~/.config/stellar does not exist
+        print_deprecation_warning(&local_dir);
+    }
 }