diff --git a/pkg/network/network.go b/pkg/network/network.go
index cbc73c70..4f3c969a 100644
--- a/pkg/network/network.go
+++ b/pkg/network/network.go
@@ -33,6 +33,11 @@ const (
 
 var netlog = logrus.WithField("subsystem", "network")
 
+// ErrNoContainerNetwork is returned when the current network namespace has no
+// suitable container interface (e.g. ctr without networking, or --network none).
+// Callers may treat this as a non-fatal condition and continue without guest networking.
+var ErrNoContainerNetwork = errors.New("no suitable network interface found in namespace")
+
 type UnikernelNetworkInfo struct {
 	TapDevice string
 	EthDevice Interface
@@ -403,7 +408,7 @@ func discoverContainerIface() (netlink.Link, error) {
 		}
 		netlog.Debugf("skipping interface %s: no default route found", attrs.Name)
 	}
-	return nil, errors.New("no suitable network interface found in namespace")
+	return nil, ErrNoContainerNetwork
 }
 
 func deleteAllQDiscs(device netlink.Link) error {
diff --git a/pkg/network/network_static.go b/pkg/network/network_static.go
index fa46608c..fef9be1c 100644
--- a/pkg/network/network_static.go
+++ b/pkg/network/network_static.go
@@ -93,8 +93,7 @@ func (n StaticNetwork) NetworkSetup(uid uint32, gid uint32) (*UnikernelNetworkIn
 	addTCRules := false
 	redirectLink, err := discoverContainerIface()
 	if err != nil {
-		netlog.Errorf("failed to find container interface, (unikernel may have been spawned using ctr): %v", err)
-		return nil, err
+		return nil, fmt.Errorf("failed to find container interface, (unikernel may have been spawned using ctr): %w", err)
 	}
 	newTapDevice, err := networkSetup(newTapName, StaticIPAddr, redirectLink, addTCRules, uid, gid)
 	if err != nil {
diff --git a/pkg/network/network_test.go b/pkg/network/network_test.go
index da8c1d3d..a5946ffa 100644
--- a/pkg/network/network_test.go
+++ b/pkg/network/network_test.go
@@ -15,6 +15,8 @@
 package network
 
 import (
+	"errors"
+	"fmt"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
@@ -56,3 +58,13 @@ func TestNewNetworkManager(t *testing.T) {
 		})
 	}
 }
+
+func TestErrNoContainerNetworkIsDetectableWhenWrapped(t *testing.T) {
+	t.Parallel()
+
+	wrapped := fmt.Errorf("failed to find container interface, (unikernel may have been spawned using ctr): %w", ErrNoContainerNetwork)
+	assert.True(t, errors.Is(wrapped, ErrNoContainerNetwork))
+
+	other := fmt.Errorf("createTapDevice(tap0_urunc) failed: %w", errors.New("permission denied"))
+	assert.False(t, errors.Is(other, ErrNoContainerNetwork))
+}
diff --git a/pkg/unikontainers/unikontainers.go b/pkg/unikontainers/unikontainers.go
index bc43bcac..ad4f64d4 100644
--- a/pkg/unikontainers/unikontainers.go
+++ b/pkg/unikontainers/unikontainers.go
@@ -266,23 +266,23 @@ func (u *Unikontainer) SetupNet() (types.NetDevParams, error) {
 
 	networkInfo, err := netManager.NetworkSetup(u.Spec.Process.User.UID, u.Spec.Process.User.GID)
 	if err != nil {
-		// TODO: Handle this case better. We do not need to show an error
-		// since there was no network in the container. Therefore, we
-		// need better error handling and specifically check if the container
-		// di not have any network.
-		uniklog.Errorf("Failed to setup network :%v. Possibly due to ctr", err)
-	}
-	// if network info is nil, we didn't find eth0, so we are running with ctr
-	if networkInfo != nil {
-		netArgs.TapDev = networkInfo.TapDevice
-		netArgs.IP = networkInfo.EthDevice.IP
-		netArgs.Mask = networkInfo.EthDevice.Mask
-		netArgs.Gateway = networkInfo.EthDevice.DefaultGateway
-		// The MAC address for the guest network device is the same as the
-		// virtual ethernet interface inside the namespace
-		netArgs.MAC = networkInfo.EthDevice.MAC
-		netArgs.MTU = networkInfo.EthDevice.MTU
-	}
+		// No container interface means there is no network to set up (e.g. ctr
+		// without CNI, or --network none). Continue without guest networking.
+		// Any other failure (TAP creation, TC rules, etc.) is fatal.
+		if errors.Is(err, network.ErrNoContainerNetwork) {
+			uniklog.Debugf("no container network interface found, continuing without network: %v", err)
+			return netArgs, nil
+		}
+		return netArgs, fmt.Errorf("failed to setup network: %w", err)
+	}
+	netArgs.TapDev = networkInfo.TapDevice
+	netArgs.IP = networkInfo.EthDevice.IP
+	netArgs.Mask = networkInfo.EthDevice.Mask
+	netArgs.Gateway = networkInfo.EthDevice.DefaultGateway
+	// The MAC address for the guest network device is the same as the
+	// virtual ethernet interface inside the namespace
+	netArgs.MAC = networkInfo.EthDevice.MAC
+	netArgs.MTU = networkInfo.EthDevice.MTU
 
 	return netArgs, nil
 }