diff --git a/lib/galaxy/managers/file_source_instances.py b/lib/galaxy/managers/file_source_instances.py
index 976aa25a7bda..06bd738122cc 100644
--- a/lib/galaxy/managers/file_source_instances.py
+++ b/lib/galaxy/managers/file_source_instances.py
@@ -642,18 +642,24 @@ def template_server_configuration(
         template = catalog.find_template_by(template_id, template_version)
         oauth2_configuration = get_oauth2_config_or_none(template)
         oauth2_scope = None
+        oauth2_client_pair_obj = None
         if oauth2_configuration is not None:
             environment = prepare_environment_from_root(template.environment, self._app_vault, self._app_config)
             user_details = user.config_template_details()
-            oauth2_client_pair_obj, oauth2_scope = read_oauth2_info_from_configuration(
-                template.configuration, user_details, environment
-            )
+            try:
+                oauth2_client_pair_obj, oauth2_scope = read_oauth2_info_from_configuration(
+                    template.configuration, user_details, environment
+                )
+            except Exception:
+                log.warning(
+                    "Failed to resolve OAuth2 client credentials for template %s - "
+                    "required environment variables may not be set",
+                    template_id,
+                )
             # most configuration definitions won't include this, the default for the
             # plugin type is the fallback and the typical case here
             if oauth2_scope is None:
                 oauth2_scope = oauth2_configuration.scope
-        else:
-            oauth2_client_pair_obj = None
         return TemplateServerConfiguration(
             oauth2_client_pair=oauth2_client_pair_obj,
             oauth2_configuration=oauth2_configuration,