diff --git a/crates/uv/src/commands/tool/install.rs b/crates/uv/src/commands/tool/install.rs
index 309b9e5d58a8..e13558c282de 100644
--- a/crates/uv/src/commands/tool/install.rs
+++ b/crates/uv/src/commands/tool/install.rs
@@ -160,7 +160,34 @@ pub(crate) async fn install(
 
     let installed_tools = InstalledTools::from_settings()?.init()?;
     let _lock = installed_tools.acquire_lock()?;
-    let existing_tool_receipt = installed_tools.get_tool_receipt(&from.name)?;
+
+    // Find the existing receipt, if it exists. If the receipt is present but malformed, we'll
+    // remove the environment and continue with the install.
+    //
+    // Later on, we want to replace entrypoints if the tool already exists, regardless of whether
+    // the receipt was valid.
+    //
+    // (If we find existing entrypoints later on, and the tool _doesn't_ exist, we'll avoid removing
+    // the external tool's entrypoints (without `--force`).)
+    let (existing_tool_receipt, reinstall_entry_points) =
+        match installed_tools.get_tool_receipt(&from.name) {
+            Ok(None) => (None, false),
+            Ok(Some(receipt)) => (Some(receipt), true),
+            Err(_) => {
+                // If the tool is not installed properly, remove the environment and continue.
+                match installed_tools.remove_environment(&from.name) {
+                    Ok(()) => {
+                        warn_user!("Removed existing `{}` with invalid receipt", from.name);
+                    }
+                    Err(uv_tool::Error::Io(err)) if err.kind() == std::io::ErrorKind::NotFound => {}
+                    Err(err) => {
+                        return Err(err.into());
+                    }
+                }
+                (None, true)
+            }
+        };
+
     let existing_environment =
         installed_tools
             .get_environment(&from.name, cache)?
@@ -200,11 +227,6 @@ pub(crate) async fn install(
         }
     }
 
-    // Replace entrypoints if the tool already exists (and we made it this far). If we find existing
-    // entrypoints later on, and the tool _doesn't_ exist, we'll avoid removing the external tool's
-    // entrypoints (without `--force`).
-    let reinstall_entry_points = existing_tool_receipt.is_some();
-
     // Resolve the requirements.
     let state = SharedState::default();
     let spec = RequirementsSpecification::from_requirements(requirements.clone());
diff --git a/crates/uv/tests/tool_install.rs b/crates/uv/tests/tool_install.rs
index e2f58a18890b..a33303f538d0 100644
--- a/crates/uv/tests/tool_install.rs
+++ b/crates/uv/tests/tool_install.rs
@@ -2,9 +2,10 @@
 
 use std::process::Command;
 
+use anyhow::Result;
 use assert_fs::{
     assert::PathAssert,
-    fixture::{FileTouch, PathChild},
+    fixture::{FileTouch, FileWriteStr, PathChild},
 };
 use insta::assert_snapshot;
 use predicates::prelude::predicate;
@@ -443,7 +444,6 @@ fn tool_install_already_installed() {
             sys.argv[0] = re.sub(r"(-script\.pyw|\.exe)?$", "", sys.argv[0])
             sys.exit(patched_main())
         "###);
-
     });
 
     insta::with_settings!({
@@ -1609,3 +1609,74 @@ fn tool_install_warn_path() {
     warning: [TEMP_DIR]/bin is not on your PATH. To use installed tools, run export PATH="[TEMP_DIR]/bin:$PATH" or uv tool update-shell.
     "###);
 }
+
+/// Test installing and reinstalling with an invalid receipt.
+#[test]
+fn tool_install_bad_receipt() -> Result<()> {
+    let context = TestContext::new("3.12")
+        .with_filtered_counts()
+        .with_filtered_exe_suffix();
+    let tool_dir = context.temp_dir.child("tools");
+    let bin_dir = context.temp_dir.child("bin");
+
+    // Install `black`
+    uv_snapshot!(context.filters(), context.tool_install()
+        .arg("black")
+        .env("UV_TOOL_DIR", tool_dir.as_os_str())
+        .env("XDG_BIN_HOME", bin_dir.as_os_str())
+        .env("PATH", bin_dir.as_os_str()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    warning: `uv tool install` is experimental and may change without warning
+    Resolved [N] packages in [TIME]
+    Prepared [N] packages in [TIME]
+    Installed [N] packages in [TIME]
+     + black==24.3.0
+     + click==8.1.7
+     + mypy-extensions==1.0.0
+     + packaging==24.0
+     + pathspec==0.12.1
+     + platformdirs==4.2.0
+    Installed 2 executables: black, blackd
+    "###);
+
+    tool_dir
+        .child("black")
+        .child("uv-receipt.toml")
+        .assert(predicate::path::exists());
+
+    // Override the `uv-receipt.toml` file with an invalid receipt.
+    tool_dir
+        .child("black")
+        .child("uv-receipt.toml")
+        .write_str("invalid")?;
+
+    // Reinstall `black`, which should remove the invalid receipt.
+    uv_snapshot!(context.filters(), context.tool_install()
+        .arg("black")
+        .env("UV_TOOL_DIR", tool_dir.as_os_str())
+        .env("XDG_BIN_HOME", bin_dir.as_os_str())
+        .env("PATH", bin_dir.as_os_str()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    warning: `uv tool install` is experimental and may change without warning
+    warning: Removed existing `black` with invalid receipt
+    Resolved [N] packages in [TIME]
+    Installed [N] packages in [TIME]
+     + black==24.3.0
+     + click==8.1.7
+     + mypy-extensions==1.0.0
+     + packaging==24.0
+     + pathspec==0.12.1
+     + platformdirs==4.2.0
+    Installed 2 executables: black, blackd
+    "###);
+
+    Ok(())
+}