diff --git a/internal/exec/vendor_utils.go b/internal/exec/vendor_utils.go
index 4bac66a06..c4cb4f06f 100644
--- a/internal/exec/vendor_utils.go
+++ b/internal/exec/vendor_utils.go
@@ -83,7 +83,7 @@ func ExecuteVendorPullCommand(cmd *cobra.Command, args []string) error {
 
 	// Check `vendor.yaml`
 	vendorConfig, vendorConfigExists, foundVendorConfigFile, err := ReadAndProcessVendorConfigFile(cliConfig, cfg.AtmosVendorConfigFileName)
-	if vendorConfigExists && err != nil {
+	if err != nil {
 		return err
 	}
 
@@ -153,7 +153,8 @@ func ReadAndProcessVendorConfigFile(
 
 			if !u.FileExists(pathToVendorConfig) {
 				vendorConfigFileExists = false
-				return vendorConfig, vendorConfigFileExists, "", fmt.Errorf("vendor config file or directory '%s' does not exist", pathToVendorConfig)
+				u.LogWarning(cliConfig, fmt.Sprintf("Vendor config file '%s' does not exist. Proceeding without vendor configurations", pathToVendorConfig))
+				return vendorConfig, vendorConfigFileExists, "", nil
 			}
 
 			foundVendorConfigFile = pathToVendorConfig