diff --git a/irs-edc-client/src/main/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionService.java b/irs-edc-client/src/main/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionService.java
index 6eb6f35496..80f88f547f 100644
--- a/irs-edc-client/src/main/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionService.java
+++ b/irs-edc-client/src/main/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionService.java
@@ -114,6 +114,7 @@ public boolean policyDefinitionExists(final String policyName) throws GetEdcPoli
         } catch (HttpClientErrorException e) {
             if (e.getStatusCode().value() == HttpStatus.NOT_FOUND.value()) {
                 log.info(String.format("Policy with id %s not found within the edc", policyName));
+                return false;
             } else {
                 throw new GetEdcPolicyDefinitionException(e);
             }
diff --git a/irs-edc-client/src/test/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionServiceTest.java b/irs-edc-client/src/test/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionServiceTest.java
index 5d36e0b1f1..66d59878c9 100644
--- a/irs-edc-client/src/test/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionServiceTest.java
+++ b/irs-edc-client/src/test/java/org/eclipse/tractusx/irs/edc/client/policy/service/EdcPolicyDefinitionServiceTest.java
@@ -156,7 +156,7 @@ void givenPolicyName_WhenGetPolicy_ThenNotExists() throws GetEdcPolicyDefinition
         String policyName = "policyName";
         when(endpointConfig.getPolicyDefinition()).thenReturn("/management/v2/policydefinitions" + "/" + policyName);
 
-        ResponseEntity<String> responseEntity = ResponseEntity.badRequest().build();
+        ResponseEntity<String> responseEntity = ResponseEntity.notFound().build();
         when(restTemplate.getForEntity(anyString(), eq(String.class))).thenReturn(responseEntity);
 
         // when