diff --git a/src/uu/nohup/src/nohup.rs b/src/uu/nohup/src/nohup.rs
index 28292ac4154..38b5e5ceb30 100644
--- a/src/uu/nohup/src/nohup.rs
+++ b/src/uu/nohup/src/nohup.rs
@@ -55,10 +55,21 @@ impl UError for NohupError {
     }
 }
 
+fn failure_code() -> i32 {
+    if env::var("POSIXLY_CORRECT").is_ok() {
+        POSIX_NOHUP_FAILURE
+    } else {
+        EXIT_CANCELED
+    }
+}
+
 #[uucore::main]
 pub fn uumain(args: impl uucore::Args) -> UResult<()> {
-    let matches =
-        uucore::clap_localization::handle_clap_result_with_exit_code(uu_app(), args, 125)?;
+    let matches = uucore::clap_localization::handle_clap_result_with_exit_code(
+        uu_app(),
+        args,
+        failure_code(),
+    )?;
 
     replace_fds()?;
 
@@ -124,10 +135,7 @@ fn replace_fds() -> UResult<()> {
 }
 
 fn find_stdout() -> UResult<File> {
-    let internal_failure_code = match env::var("POSIXLY_CORRECT") {
-        Ok(_) => POSIX_NOHUP_FAILURE,
-        Err(_) => EXIT_CANCELED,
-    };
+    let internal_failure_code = failure_code();
 
     match OpenOptions::new()
         .create(true)
diff --git a/tests/by-util/test_nohup.rs b/tests/by-util/test_nohup.rs
index 2349b2dc2a8..f3fa0bc948c 100644
--- a/tests/by-util/test_nohup.rs
+++ b/tests/by-util/test_nohup.rs
@@ -14,8 +14,17 @@ use uutests::util_name;
 // All that can be tested is the side-effects.
 
 #[test]
-fn test_invalid_arg() {
-    new_ucmd!().arg("--definitely-invalid").fails_with_code(125);
+fn test_nohup_exit_codes() {
+    // No args: 125 default, 127 with POSIXLY_CORRECT
+    new_ucmd!().fails_with_code(125);
+    new_ucmd!().env("POSIXLY_CORRECT", "1").fails_with_code(127);
+
+    // Invalid arg: 125 default, 127 with POSIXLY_CORRECT
+    new_ucmd!().arg("--invalid").fails_with_code(125);
+    new_ucmd!()
+        .env("POSIXLY_CORRECT", "1")
+        .arg("--invalid")
+        .fails_with_code(127);
 }
 
 #[test]