diff --git a/app/controllers/admin/licenses_controller.rb b/app/controllers/admin/licenses_controller.rb
index efd358000cd567429cf3ece16a0aafb3b1e7f6a7..687dd546d8aaac22f90147540919a2d23ef53d39 100644
--- a/app/controllers/admin/licenses_controller.rb
+++ b/app/controllers/admin/licenses_controller.rb
@@ -17,11 +17,11 @@ def new
   end
 
   def create
-    unless params[:license]
-      flash.now[:alert] = "No license was selected."
+    unless params[:license][:data].present? || params[:license][:data_file].present?
+      flash[:alert] = 'Please enter or upload a license.'
 
       @license = License.new
-      render :new
+      redirect_to new_admin_license_path
       return
     end
 
diff --git a/changelogs/unreleased-ee/gracefully_handle_new_license_error.yml b/changelogs/unreleased-ee/gracefully_handle_new_license_error.yml
new file mode 100644
index 0000000000000000000000000000000000000000..5b02eb4495c8729c69214dbe5babfa565a080e31
--- /dev/null
+++ b/changelogs/unreleased-ee/gracefully_handle_new_license_error.yml
@@ -0,0 +1,4 @@
+---
+title: Prevent 500 error when uploading/entering a blank license
+merge_request: 1016
+author:
diff --git a/spec/controllers/admin/licenses_controller_spec.rb b/spec/controllers/admin/licenses_controller_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..9487b7f4d37c841d8f1f5dbf719bdff5874ed824
--- /dev/null
+++ b/spec/controllers/admin/licenses_controller_spec.rb
@@ -0,0 +1,15 @@
+require 'spec_helper'
+
+describe Admin::LicensesController do
+  let(:admin) { create(:admin) }
+  before { sign_in(admin) }
+
+  describe 'Upload license' do
+    it 'redirects back when no license is entered/uploaded' do
+      post :create, license: { data: '' }
+
+      expect(response).to redirect_to new_admin_license_path
+      expect(flash[:alert]).to include 'Please enter or upload a license.'
+    end
+  end
+end