diff --git a/src/OpenFeature.Contrib.Providers.Flagd/FlagdProvider.cs b/src/OpenFeature.Contrib.Providers.Flagd/FlagdProvider.cs
index 11bdd302..dc457da5 100644
--- a/src/OpenFeature.Contrib.Providers.Flagd/FlagdProvider.cs
+++ b/src/OpenFeature.Contrib.Providers.Flagd/FlagdProvider.cs
@@ -16,7 +16,7 @@ public sealed class FlagdProvider : FeatureProvider
     {
         const string ProviderName = "flagd Provider";
         private readonly FlagdConfig _config;
-        private ProviderStatus _status;
+        private ProviderStatus _status = ProviderStatus.NotReady;
         private readonly Metadata _providerMetadata = new Metadata(ProviderName);
 
         private readonly Resolver.Resolver _resolver;
@@ -118,11 +118,13 @@ public override Task Initialize(EvaluationContext context)
             {
                 await _resolver.Init();
                 _status = ProviderStatus.Ready;
-
             }).ContinueWith((t) =>
             {
-                _status = ProviderStatus.Error;
-                if (t.IsFaulted) throw t.Exception;
+                if (t.IsFaulted)
+                {
+                    _status = ProviderStatus.Error;
+                    throw t.Exception;
+                };
             });
         }
 
diff --git a/test/OpenFeature.Contrib.Providers.Flagd.Test/FlagdProviderTest.cs b/test/OpenFeature.Contrib.Providers.Flagd.Test/FlagdProviderTest.cs
index e796ac90..70314b77 100644
--- a/test/OpenFeature.Contrib.Providers.Flagd.Test/FlagdProviderTest.cs
+++ b/test/OpenFeature.Contrib.Providers.Flagd.Test/FlagdProviderTest.cs
@@ -5,6 +5,7 @@
 using Google.Protobuf.WellKnownTypes;
 using Grpc.Core;
 using NSubstitute;
+using NSubstitute.ExceptionExtensions;
 using NSubstitute.ReceivedExtensions;
 using OpenFeature.Constant;
 using OpenFeature.Contrib.Providers.Flagd.Resolver.InProcess;
@@ -525,6 +526,28 @@ public async Task TestCacheAsync()
             mockGrpcClient.Received(Quantity.AtLeastOne()).EventStream(Arg.Any<EventStreamRequest>(), null, null, CancellationToken.None);
         }
 
+        [Fact]
+        public async Task TestResolverInit_Success_Ready()
+        {
+            var mockResolver = Substitute.For<Resolver.Resolver>();
+            mockResolver.Init().Returns(Task.CompletedTask);
+            var provider = new FlagdProvider(resolver: mockResolver);
+            await provider.Initialize(EvaluationContext.Empty);
+
+            Assert.Equal(ProviderStatus.Ready, provider.GetStatus());
+        }
+
+        [Fact]
+        public async Task TestResolverInit_Failure_Error()
+        {
+            var mockResolver = Substitute.For<Resolver.Resolver>();
+            mockResolver.Init().ThrowsAsync(new Exception("fake exception"));
+            var provider = new FlagdProvider(resolver: mockResolver);
+            await Assert.ThrowsAsync<AggregateException>(() => provider.Initialize(EvaluationContext.Empty));
+
+            Assert.Equal(ProviderStatus.Error, provider.GetStatus());
+        }
+
         [Fact]
         public async Task TestCacheHitAsync()
         {