diff --git a/qiskit/transpiler/preset_passmanagers/builtin_plugins.py b/qiskit/transpiler/preset_passmanagers/builtin_plugins.py
index 783c070a2ec..b279d5b47ce 100644
--- a/qiskit/transpiler/preset_passmanagers/builtin_plugins.py
+++ b/qiskit/transpiler/preset_passmanagers/builtin_plugins.py
@@ -90,7 +90,7 @@ def pass_manager(self, pass_manager_config, optimization_level=None) -> PassMana
             init.append(OptimizeSwapBeforeMeasure())
             init.append(RemoveDiagonalGatesBeforeMeasure())
         else:
-            return TranspilerError(f"Invalid optimization level {optimization_level}")
+            raise TranspilerError(f"Invalid optimization level {optimization_level}")
         return init
 
 
diff --git a/releasenotes/notes/followup_11468-61c6181e62531796.yaml b/releasenotes/notes/followup_11468-61c6181e62531796.yaml
new file mode 100644
index 00000000000..81156a9619b
--- /dev/null
+++ b/releasenotes/notes/followup_11468-61c6181e62531796.yaml
@@ -0,0 +1,4 @@
+---
+fixes:
+  - |
+    The default ``init`` plugin was not properly raising a :class:`.TranspilerError` when called with an invalid optimization level.
diff --git a/test/python/transpiler/test_stage_plugin.py b/test/python/transpiler/test_stage_plugin.py
index 54dd56e1ebd..a126a0d45e6 100644
--- a/test/python/transpiler/test_stage_plugin.py
+++ b/test/python/transpiler/test_stage_plugin.py
@@ -86,6 +86,15 @@ def test_build_pm(self):
         )
         self.assertIsInstance(pm, PassManager)
 
+    def test_init_invalid_optlevel(self):
+        """Test default init stage with invalid optimization level.
+        See: https://github.com/Qiskit/qiskit/pull/12170"""
+        plugin_manager = PassManagerStagePluginManager()
+        with self.assertRaises(TranspilerError):
+            plugin_manager.get_passmanager_stage(
+                "init", "default", PassManagerConfig(), optimization_level=4
+            )
+
 
 @ddt.ddt
 class TestBuiltinPlugins(QiskitTestCase):