diff --git a/src/boot/grub2/grub2-15_ostree b/src/boot/grub2/grub2-15_ostree
index dfff6e89bf..0b9bf930ae 100644
--- a/src/boot/grub2/grub2-15_ostree
+++ b/src/boot/grub2/grub2-15_ostree
@@ -17,10 +17,14 @@
 # Free Software Foundation, Inc., 59 Temple Place, Suite 330,
 # Boston, MA 02111-1307, USA.
 
-# Gracefully exit if ostree is not installed
+# Gracefully exit if ostree is not installed, or there's
+# no system repository initialized.
 if ! which ostree >/dev/null 2>/dev/null; then
     exit 0
 fi
+if ! test -d /ostree/repo; then
+    exit 0
+fi
 
 # Make sure we're in the right environment
 if ! test -n "${GRUB_DEVICE}"; then