diff --git a/CHANGES.rst b/CHANGES.rst
index aa0f91b74b..90b8dfad21 100644
--- a/CHANGES.rst
+++ b/CHANGES.rst
@@ -152,7 +152,7 @@ tweakreg
 - Changed default settings for ``abs_separation`` parameter for the ``tweakreg``
   step to have a value compatible with the ``abs_tolerance`` parameter. [#8445]
 
-- Improve error handling in the absolute alignment. [#8450]
+- Improve error handling in the absolute alignment. [#8450, #8477]
 
 wfss_contam
 -----------
diff --git a/jwst/regtest/test_niriss_image.py b/jwst/regtest/test_niriss_image.py
index 0cc2fd3a3e..eb2a0ad70a 100644
--- a/jwst/regtest/test_niriss_image.py
+++ b/jwst/regtest/test_niriss_image.py
@@ -6,7 +6,9 @@
 import pytest
 from astropy.io.fits.diff import FITSDiff
 
+from jwst import datamodels
 from jwst.stpipe import Step
+from jwst.tweakreg import TweakRegStep
 
 
 @pytest.fixture(scope="module")
@@ -44,6 +46,29 @@ def test_niriss_image_detector1(run_detector1, rtdata_module, fitsdiff_default_k
     _assert_is_same(rtdata_module, fitsdiff_default_kwargs, suffix)
 
 
+@pytest.mark.bigdata
+def test_niriss_tweakreg_no_sources(rtdata, fitsdiff_default_kwargs):
+    """Make sure tweakreg is skipped when sources are not found.
+    """
+
+    rtdata.input = "niriss/imaging/jw01537-o003_20240406t164421_image3_00004_asn.json"
+    rtdata.get_asn("niriss/imaging/jw01537-o003_20240406t164421_image3_00004_asn.json")
+
+    args = ["jwst.tweakreg.TweakRegStep", rtdata.input, "--abs_refcat='GAIADR3'"]
+    result = Step.from_cmdline(args)
+    # Check that the step is skipped
+    assert result.skip
+
+    # Check the status of the step is set correctly in the files.
+    result = TweakRegStep.call(rtdata.input)
+
+    for fi in result._models:
+        with datamodels.open(fi) as model:
+            assert model.meta.cal_step.tweakreg == 'SKIPPED'
+
+    result.close()
+
+
 def _assert_is_same(rtdata_module, fitsdiff_default_kwargs, suffix):
     """Assertion helper for the above tests"""
     rtdata = rtdata_module