diff --git a/multiversx_sdk_cli/dependencies/modules.py b/multiversx_sdk_cli/dependencies/modules.py
index 7c7832b5..3db26eff 100644
--- a/multiversx_sdk_cli/dependencies/modules.py
+++ b/multiversx_sdk_cli/dependencies/modules.py
@@ -273,10 +273,13 @@ def is_installed(self, tag: str) -> bool:
         return all(dependency is not None for dependency in dependencies)
 
     def install(self, overwrite: bool) -> None:
+        self._check_install_env(apply_correction=overwrite)
+
         module = dependencies.get_module_by_key("rust")
         tag: str = config.get_dependency_tag(module.key)
 
-        show_warning(f"We recommend using rust {tag}. If you'd like to overwrite your current version please run `mxpy deps install rust --overwrite`.")
+        if not overwrite:
+            show_warning(f"We recommend using rust {tag}. If you'd like to overwrite your current version please run `mxpy deps install rust --overwrite`.")
         logger.info(f"install: key={self.key}, tag={tag}, overwrite={overwrite}")
 
         if overwrite:
@@ -289,6 +292,29 @@ def install(self, overwrite: bool) -> None:
         self._install_wasm_opt()
         self._install_twiggy()
 
+    def _check_install_env(self, apply_correction: bool = True):
+        """
+        See https://rust-lang.github.io/rustup/installation/index.html#choosing-where-to-install.
+        """
+
+        current_cargo_home = os.environ.get("CARGO_HOME", None)
+        current_rustup_home = os.environ.get("RUSTUP_HOME", None)
+        if current_cargo_home:
+            show_warning(f"""CARGO_HOME variable is set to: {current_cargo_home}.
+This may cause problems with the installation.""")
+
+            if apply_correction:
+                show_warning(f"CARGO_HOME will be temporarily unset.")
+                os.environ["CARGO_HOME"] = ""
+
+        if current_rustup_home:
+            show_warning(f"""RUSTUP_HOME variable is set to: {current_rustup_home}.
+This may cause problems with the installation of rust.""")
+
+            if apply_correction:
+                show_warning(f"RUSTUP_HOME will be temporarily unset.")
+                os.environ["RUSTUP_HOME"] = ""
+
     def _install_rust(self, tag: str) -> None:
         installer_url = self._get_installer_url()
         installer_path = self._get_installer_path()
diff --git a/pyproject.toml b/pyproject.toml
index 2d4cab4f..933044e8 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "hatchling.build"
 
 [project]
 name = "multiversx-sdk-cli"
-version = "9.0.1"
+version = "9.0.2"
 authors = [
   { name="MultiversX" },
 ]