diff --git a/internal/configs/provider_meta.go b/internal/configs/provider_meta.go
index 359bfa9fa511..ba2d2fd41ea9 100644
--- a/internal/configs/provider_meta.go
+++ b/internal/configs/provider_meta.go
@@ -29,7 +29,11 @@ func decodeProviderMetaBlock(block *hcl.Block) (*ProviderMeta, hcl.Diagnostics)
 	}
 
 	// verify that the local name is already localized or produce an error.
-	diags = append(diags, checkProviderNameNormalized(block.Labels[0], block.DefRange)...)
+	nameDiags := checkProviderNameNormalized(block.Labels[0], block.DefRange)
+	diags = append(diags, nameDiags...)
+	if nameDiags.HasErrors() {
+		return nil, diags
+	}
 
 	return &ProviderMeta{
 		Provider:      block.Labels[0],