diff --git a/samcli/lib/build/app_builder.py b/samcli/lib/build/app_builder.py
index aded5dbbac0..056af7b53d9 100644
--- a/samcli/lib/build/app_builder.py
+++ b/samcli/lib/build/app_builder.py
@@ -40,9 +40,10 @@
 from samcli.lib.utils import osutils
 from samcli.lib.utils.packagetype import IMAGE, ZIP
 from samcli.lib.utils.stream_writer import StreamWriter
+from samcli.local.docker.exceptions import ContainerNotStartableException
 from samcli.local.docker.lambda_build_container import LambdaBuildContainer
 from samcli.local.docker.utils import is_docker_reachable, get_docker_platform
-from samcli.local.docker.manager import ContainerManager
+from samcli.local.docker.manager import ContainerManager, DockerImagePullFailedException
 from samcli.commands._utils.experimental import get_enabled_experimental_flags
 from samcli.lib.build.exceptions import (
     DockerConnectionError,
@@ -960,6 +961,10 @@ def _build_function_on_container(
             # "/." is a Docker thing that instructions the copy command to download contents of the folder only
             result_dir_in_container = response["result"]["artifacts_dir"] + "/."
             container.copy(result_dir_in_container, artifacts_dir)
+
+        except DockerImagePullFailedException as ex:
+            raise BuildInsideContainerError(ex)
+
         finally:
             self._container_manager.stop(container)
 
diff --git a/tests/unit/lib/build_module/test_app_builder.py b/tests/unit/lib/build_module/test_app_builder.py
index efccaf735b6..800c2d7fe29 100644
--- a/tests/unit/lib/build_module/test_app_builder.py
+++ b/tests/unit/lib/build_module/test_app_builder.py
@@ -28,6 +28,7 @@
 from samcli.lib.utils.architecture import X86_64, ARM64
 from samcli.lib.utils.packagetype import IMAGE, ZIP
 from samcli.lib.utils.stream_writer import StreamWriter
+from samcli.local.docker.manager import DockerImagePullFailedException
 from tests.unit.lib.build_module.test_build_graph import generate_function
 
 
@@ -2724,6 +2725,26 @@ def test_must_raise_on_unsupported_container(self, LambdaBuildContainerMock):
         self.assertEqual(str(ctx.exception), msg)
         self.container_manager.stop.assert_called_with(container_mock)
 
+    @patch("samcli.lib.build.app_builder.LambdaBuildContainer")
+    def test_must_raise_on_image_not_found(self, LambdaBuildContainerMock):
+        config = Mock()
+
+        container_mock = LambdaBuildContainerMock.return_value = Mock()
+        container_mock.image = "image name"
+
+        self.container_manager.run.side_effect = DockerImagePullFailedException(
+            f"Could not find {container_mock.image} image locally and failed to pull it from docker."
+        )
+
+        with self.assertRaises(BuildInsideContainerError) as ctx:
+            self.builder._build_function_on_container(
+                config, "source_dir", "artifacts_dir", "scratch_dir", "manifest_path", "runtime", X86_64, {}
+            )
+
+        msg = f"Could not find {container_mock.image} image locally and failed to pull it from docker."
+
+        self.assertEqual(str(ctx.exception), msg)
+
     def test_must_raise_on_docker_not_running(self):
         config = Mock()