diff --git a/internal/pkg/argocd/argocd.go b/internal/pkg/argocd/argocd.go
index c4ef8039..e1dbf96a 100644
--- a/internal/pkg/argocd/argocd.go
+++ b/internal/pkg/argocd/argocd.go
@@ -327,6 +327,9 @@ func SetArgoCDAppRevision(ctx context.Context, componentPath string, revision st
 	if err != nil {
 		return fmt.Errorf("error finding ArgoCD application for component path %s: %w", componentPath, err)
 	}
+	if foundApp == nil {
+		return fmt.Errorf("no ArgoCD application was found for component path: %s", componentPath)
+	}
 	if foundApp.Spec.Source.TargetRevision == revision {
 		log.Infof("App %s already has revision %s", foundApp.Name, revision)
 		return nil
diff --git a/internal/pkg/argocd/argocd_test.go b/internal/pkg/argocd/argocd_test.go
index dc78cecc..80e094d9 100644
--- a/internal/pkg/argocd/argocd_test.go
+++ b/internal/pkg/argocd/argocd_test.go
@@ -3,6 +3,7 @@ package argocd
 import (
 	"bytes"
 	"context"
+	"log"
 	"os"
 	"strings"
 	"testing"
@@ -11,6 +12,7 @@ import (
 	argoappv1 "github.com/argoproj/argo-cd/v2/pkg/apis/application/v1alpha1"
 	"github.com/golang/mock/gomock"
 	"github.com/wayfair-incubator/telefonistka/internal/pkg/mocks"
+	"github.com/wayfair-incubator/telefonistka/internal/pkg/testutils"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 )
@@ -273,3 +275,39 @@ func TestFindArgocdAppByPathAnnotationRelative2(t *testing.T) {
 		t.Errorf("App name is not right-app")
 	}
 }
+
+func TestFindArgocdAppByPathAnnotationNotFound(t *testing.T) {
+	t.Parallel()
+	defer testutils.Quiet()()
+	ctx := context.Background()
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+	mockApplicationClient := mocks.NewMockApplicationServiceClient(ctrl)
+	expectedResponse := &argoappv1.ApplicationList{
+		Items: []argoappv1.Application{
+			{
+				ObjectMeta: metav1.ObjectMeta{
+					Annotations: map[string]string{
+						"argocd.argoproj.io/manifest-generate-paths": "non-existing-path",
+					},
+					Name: "non-existing-app",
+				},
+				Spec: argoappv1.ApplicationSpec{
+					Source: &argoappv1.ApplicationSource{
+						RepoURL: "",
+						Path:    "non-existing/",
+					},
+				},
+			},
+		},
+	}
+
+	mockApplicationClient.EXPECT().List(gomock.Any(), gomock.Any()).Return(expectedResponse, nil)
+	app, err := findArgocdAppByManifestPathAnnotation(ctx, "non-existing/path", "some-repo", mockApplicationClient)
+	if err != nil {
+		t.Errorf("Error: %v", err)
+	}
+	if app != nil {
+		log.Fatal("expected the application to be nil")
+	}
+}
diff --git a/internal/pkg/githubapi/github_test.go b/internal/pkg/githubapi/github_test.go
index a2d965aa..1527c75a 100644
--- a/internal/pkg/githubapi/github_test.go
+++ b/internal/pkg/githubapi/github_test.go
@@ -186,6 +186,10 @@ func TestGenerateArgoCdDiffComments(t *testing.T) {
 		},
 	}
 
+	if err := os.Setenv("TEMPLATES_PATH", "../../../templates/"); err != nil { //nolint:tenv
+		t.Fatal(err)
+	}
+
 	for name, tc := range tests {
 		tc := tc // capture range variable
 		name := name
diff --git a/internal/pkg/testutils/testutils.go b/internal/pkg/testutils/testutils.go
new file mode 100644
index 00000000..b7673a67
--- /dev/null
+++ b/internal/pkg/testutils/testutils.go
@@ -0,0 +1,16 @@
+package testutils
+
+import (
+	"io"
+	"os"
+
+	log "github.com/sirupsen/logrus"
+)
+
+// Quiet suppresses logs when running go test.
+func Quiet() func() {
+	log.SetOutput(io.Discard)
+	return func() {
+		log.SetOutput(os.Stdout)
+	}
+}