diff --git a/‎pkg/action/install.go‎
Lines changed: 6 additions & 5 deletions b/‎pkg/action/install.go‎
Lines changed: 6 additions & 5 deletions
@@ -751,6 +751,12 @@ func (c *ChartPathOptions) LocateChart(name string, settings *cli.EnvSettings) (
 	version := strings.TrimSpace(c.Version)
 
 	if _, err := os.Stat(name); err == nil {
+		// Issue #7862: Helm prioritizes local charts over --repo flag.
+		// This behavior is maintained for backwards compatibility but with a warning.
+		if c.RepoURL != "" {
+			slog.Warn("local chart found in current working directory. --repo flag ignored", "chart", name)
+		}
+
 		abs, err := filepath.Abs(name)
 		if err != nil {
 			return abs, err
@@ -760,11 +766,6 @@ func (c *ChartPathOptions) LocateChart(name string, settings *cli.EnvSettings) (
 				return "", err
 			}
 		}
-		// Issue #7862: Helm prioritizes local charts over --repo flag.
-		// This behavior is maintained for backwards compatibility but with a warning.
-		if c.RepoURL != "" {
-			slog.Warn("local chart found in current working directory. --repo flag ignored", "chart", name)
-		}
 		return abs, nil
 	}
 	if filepath.IsAbs(name) || strings.HasPrefix(name, ".") {