diff --git a/lib/init/grass.py b/lib/init/grass.py
index c52b123ac9d..6f67c6fff47 100755
--- a/lib/init/grass.py
+++ b/lib/init/grass.py
@@ -295,7 +295,7 @@ def help_message(default_gui) -> None:
             flags=_("Flags"),
             help_flag=_("print this help message"),
             version_flag=_("show version information and exit"),
-            create=_("create given database, project or mapset if it doesn't exist"),
+            create=_("create given project or mapset if it doesn't exist"),
             exit_after=_("exit after creation of project or mapset. Only with -c flag"),
             force_removal=_(
                 "force removal of .gislock if exists (use with care!)."
@@ -666,15 +666,22 @@ def create_location(gisdbase, location, geostring) -> None:
     :param geostring: path to a georeferenced file or EPSG code
     """
     import grass.script as gs  # pylint: disable=E0611
+    from grass.exceptions import ScriptError
 
     try:
         gs.create_project(gisdbase, location, crs=geostring)
-    except gs.ScriptError as err:
+    except ScriptError as err:
         fatal(
             _("Error creating project: {}").format(
                 err.value.strip('"').strip("'").replace("\\n", os.linesep)
             )
         )
+    except OSError as err:
+        fatal(
+            _("Cannot create project <{}>: {}: {}").format(
+                location, err.strerror, err.filename
+            )
+        )
 
 
 def can_create_location(gisdbase: StrPath, location) -> bool:
diff --git a/lib/init/tests/grass_create_project_test.py b/lib/init/tests/grass_create_project_test.py
new file mode 100644
index 00000000000..640c5da7d99
--- /dev/null
+++ b/lib/init/tests/grass_create_project_test.py
@@ -0,0 +1,21 @@
+"""Test that grass -c reports a clear error instead of a traceback
+
+SPDX-FileCopyrightText: 2026 Akash Maity
+SPDX-FileCopyrightText: GRASS Development Team
+SPDX-License-Identifier: GPL-2.0-or-later
+"""
+
+import subprocess
+
+
+def test_missing_database_directory(tmp_path):
+    """Missing parent directories give a clear error"""
+    project = tmp_path / "missing" / "deeper" / "myproject"
+    result = subprocess.run(
+        ["grass", "-c", "EPSG:4326", str(project), "-e"],
+        capture_output=True,
+        text=True,
+    )
+    assert result.returncode != 0
+    assert "Traceback" not in result.stderr
+    assert "Cannot create project" in result.stderr