diff --git a/apps/desktop/src/app/DesktopCliCommand.test.ts b/apps/desktop/src/app/DesktopCliCommand.test.ts
index ebb32bda43ce..f6c38b5ecce1 100644
--- a/apps/desktop/src/app/DesktopCliCommand.test.ts
+++ b/apps/desktop/src/app/DesktopCliCommand.test.ts
@@ -147,6 +147,20 @@ it.layer(NodeServices.layer)("DesktopCliCommand", (it) => {
     }).pipe(Effect.scoped),
   );
 
+  it.effect("removes its staging file when the launcher cannot be replaced", () =>
+    Effect.gen(function* () {
+      const fs = yield* FileSystem.FileSystem;
+      const path = yield* Path.Path;
+      const home = yield* fs.makeTempDirectoryScoped();
+      const command = yield* commandIn({ home });
+      const launcher = path.join(home, ".t3", "bin", "t3");
+      yield* fs.makeDirectory(path.join(launcher, "occupied"), { recursive: true });
+
+      expect((yield* Effect.flip(command.install)).message).toContain("Could not set up");
+      expect(yield* fs.readDirectory(path.dirname(launcher))).toEqual(["t3"]);
+    }).pipe(Effect.scoped),
+  );
+
   it.effect("finds and removes a link left by a previous T3 home", () =>
     Effect.gen(function* () {
       const fs = yield* FileSystem.FileSystem;
diff --git a/apps/desktop/src/app/DesktopCliShim.ts b/apps/desktop/src/app/DesktopCliShim.ts
index 3d4b94abff46..f0f372425df1 100644
--- a/apps/desktop/src/app/DesktopCliShim.ts
+++ b/apps/desktop/src/app/DesktopCliShim.ts
@@ -148,8 +148,12 @@ export const install = Effect.gen(function* () {
     if (Option.getOrUndefined(existing) !== content) {
       yield* fs.makeDirectory(path.dirname(shimPath), { recursive: true });
       const staging = `${shimPath}.${process.pid}.tmp`;
-      yield* fs.writeFileString(staging, content, { mode: 0o755 });
-      yield* fs.rename(staging, shimPath);
+      yield* fs
+        .writeFileString(staging, content, { mode: 0o755 })
+        .pipe(
+          Effect.andThen(fs.rename(staging, shimPath)),
+          Effect.ensuring(fs.remove(staging, { force: true }).pipe(Effect.ignore)),
+        );
       yield* logInfo("installed t3 launcher", { shimPath });
     }
     return Option.some(shimPath);