diff --git a/nvm.sh b/nvm.sh
index d853c9d..6a58ebf 100755
--- a/nvm.sh
+++ b/nvm.sh
@@ -2374,7 +2374,7 @@ nvm_install_binary() {
   # Read nosource from arguments
   if [ "${nosource-}" = '1' ]; then
     nvm_err 'Binary download failed. Download from source aborted.'
-    return 0
+    return 2
   fi
 
   nvm_err 'Binary download failed, trying source.'
diff --git a/test/fast/Unit tests/nvm_install_binary_nosource b/test/fast/Unit tests/nvm_install_binary_nosource
index 2034658..f3bef0a 100755
--- a/test/fast/Unit tests/nvm_install_binary_nosource	
+++ b/test/fast/Unit tests/nvm_install_binary_nosource	
@@ -23,6 +23,9 @@ if [ "${OUTPUT#*$EXPECTED_OUTPUT}" = "${OUTPUT}" ]; then
   die "No source binary flag is active and should have returned >${EXPECTED_OUTPUT}<. Instead it returned >${OUTPUT}<"
 fi
 
+EXIT_CODE="$(nvm_install_binary node std 8.0.0 1 2>/dev/null; echo $?)"
+[ "${EXIT_CODE}" = "2" ] || die "Expected exit code 2 when nosource=1 and binary fails, got ${EXIT_CODE}"
+
 # Unit test to check if the function errors out when the flag is set
 OUTPUT="$(nvm_install_binary node std 8.0.0 0 2>&1)"
 EXPECTED_OUTPUT='Binary download failed. Download from source aborted.'