diff --git a/lib/rubygems/commands/update_command.rb b/lib/rubygems/commands/update_command.rb
index 052d9f9245..612667dfd0 100644
--- a/lib/rubygems/commands/update_command.rb
+++ b/lib/rubygems/commands/update_command.rb
@@ -264,7 +264,7 @@ command to remove old versions.
   def update_rubygems
     if Gem.disable_system_update_message
       alert_error Gem.disable_system_update_message
-      return
+      terminate_interaction 1
     end
 
     check_update_arguments
diff --git a/test/rubygems/test_gem_commands_update_command.rb b/test/rubygems/test_gem_commands_update_command.rb
index 3b823a047f..bd06c84107 100644
--- a/test/rubygems/test_gem_commands_update_command.rb
+++ b/test/rubygems/test_gem_commands_update_command.rb
@@ -245,8 +245,10 @@ class TestGemCommandsUpdateCommand < Gem::TestCase
     @cmd.options[:args] = []
     @cmd.options[:system] = true
 
-    use_ui @ui do
-      @cmd.execute
+    assert_raises Gem::MockGemUi::TermError do
+      use_ui @ui do
+        @cmd.execute
+      end
     end
 
     assert_empty @ui.output