diff --git a/src/crewai/cli/install_crew.py b/src/crewai/cli/install_crew.py
index d1d0ab9da..fcfd51971 100644
--- a/src/crewai/cli/install_crew.py
+++ b/src/crewai/cli/install_crew.py
@@ -1,4 +1,5 @@
 import subprocess
+from pathlib import Path
 
 import click
 
@@ -7,6 +8,11 @@ def install_crew(proxy_options: list[str]) -> None:
     """
     Install the crew by running the UV command to lock and install.
     """
+    if not Path("pyproject.toml").exists():
+        click.echo("Error: No pyproject.toml found in current directory.", err=True)
+        click.echo("This command must be run from the root of a crew project.", err=True)
+        return
+
     try:
         command = ["uv", "sync"] + proxy_options
         subprocess.run(command, check=True, capture_output=False, text=True)
diff --git a/tests/cli/install_crew_test.py b/tests/cli/install_crew_test.py
new file mode 100644
index 000000000..1dba58f35
--- /dev/null
+++ b/tests/cli/install_crew_test.py
@@ -0,0 +1,67 @@
+import subprocess
+from unittest import mock
+
+import pytest
+from click.testing import CliRunner
+from pathlib import Path
+
+from crewai.cli.install_crew import install_crew
+
+
+@pytest.fixture
+def mock_subprocess_run():
+    with mock.patch("subprocess.run") as mock_run:
+        yield mock_run
+
+
+@pytest.fixture
+def mock_path_exists():
+    with mock.patch("pathlib.Path.exists") as mock_exists:
+        yield mock_exists
+
+
+def test_install_crew_pyproject_exists(mock_subprocess_run, mock_path_exists):
+    mock_path_exists.return_value = True
+    proxy_options = []
+
+    install_crew(proxy_options)
+
+    mock_subprocess_run.assert_called_once_with(
+        ["uv", "sync"] + proxy_options, check=True, capture_output=False, text=True
+    )
+
+
+def test_install_crew_pyproject_not_exists(mock_subprocess_run, mock_path_exists, capsys):
+    mock_path_exists.return_value = False
+    proxy_options = []
+
+    install_crew(proxy_options)
+
+    mock_subprocess_run.assert_not_called()
+    captured = capsys.readouterr()
+    assert "Error: No pyproject.toml found in current directory." in captured.err
+    assert "This command must be run from the root of a crew project." in captured.err
+
+
+def test_install_crew_subprocess_error(mock_subprocess_run, mock_path_exists, capsys):
+    mock_path_exists.return_value = True
+    mock_subprocess_run.side_effect = subprocess.CalledProcessError(
+        cmd=["uv", "sync"], returncode=1
+    )
+    proxy_options = []
+
+    install_crew(proxy_options)
+
+    captured = capsys.readouterr()
+    assert "An error occurred while running the crew" in captured.err
+
+
+def test_install_crew_general_exception(mock_subprocess_run, mock_path_exists, capsys):
+    mock_path_exists.return_value = True
+    mock_subprocess_run.side_effect = Exception("Test exception")
+    proxy_options = []
+
+    install_crew(proxy_options)
+
+    captured = capsys.readouterr()
+    assert "An unexpected error occurred: Test exception" in captured.err