diff --git a/setup.sh b/setup.sh
index 102390dd8..9ccbf68cb 100755
--- a/setup.sh
+++ b/setup.sh
@@ -260,6 +260,11 @@ setup_osie() (
 			curl -fsSL 'https://tinkerbell-oss.s3.amazonaws.com/osie-uploads/latest.tar.gz' -o ./osie.tar.gz
 			tar -zxf osie.tar.gz
 		else
+			if [ ! -f "$TB_OSIE_TAR" ]; then
+				echo "$ERR osie tar not found in the given location $TB_OSIE_TAR"
+				exit 1
+			fi
+			echo "$INFO extracting osie tar"
 			tar -zxf "$TB_OSIE_TAR"
 		fi