diff --git a/src/CardinalPlugin.cpp b/src/CardinalPlugin.cpp
index 0a6dd63..b44d865 100644
--- a/src/CardinalPlugin.cpp
+++ b/src/CardinalPlugin.cpp
@@ -120,9 +120,10 @@ struct Initializer
                 {
                     templatePath = CARDINAL_PLUGIN_SOURCE_DIR DISTRHO_OS_SEP_STR "template.vcv";
                 }
-                else
                 // If source code dir does not exist use install target prefix as system dir
+                else
                #endif
+                if (system::exists(CARDINAL_PLUGIN_PREFIX "/share/Cardinal"))
                 {
                     asset::bundlePath = CARDINAL_PLUGIN_PREFIX "/share/Cardinal/PluginManifests";
                     asset::systemDir = CARDINAL_PLUGIN_PREFIX "/share/Cardinal";
@@ -142,8 +143,13 @@ struct Initializer
         INFO("User directory: %s", asset::userDir.c_str());
         INFO("Template patch: %s", templatePath.c_str());
 
-        // Check existence of the system res/ directory
-        if (! system::exists(asset::systemDir))
+        // Report to user if something is wrong with the installation
+        if (asset::systemDir.empty())
+        {
+            d_stderr2("Failed to locate Cardinal plugin bundle.\n"
+                      "Install Cardinal with its bundle folder intact and try again.");
+        }
+        else if (! system::exists(asset::systemDir))
         {
             d_stderr2("System directory \"%s\" does not exist.\n"
                       "Make sure Cardinal was downloaded and installed correctly.", asset::systemDir.c_str());
diff --git a/src/CardinalUI.cpp b/src/CardinalUI.cpp
index 8c3fe1f..b46980b 100644
--- a/src/CardinalUI.cpp
+++ b/src/CardinalUI.cpp
@@ -16,6 +16,7 @@
  */
 
 #include <app/Scene.hpp>
+#include <asset.hpp>
 #include <context.hpp>
 #include <helpers.hpp>
 #include <patch.hpp>
@@ -298,6 +299,24 @@ public:
         rack::widget::Widget* const libraryButton = headerLayout->children.back();
         libraryButton->hide();
 
+        // Report to user if something is wrong with the installation
+        std::string errorMessage;
+
+        if (rack::asset::systemDir.empty())
+        {
+            errorMessage = "Failed to locate Cardinal plugin bundle.\n"
+                           "Install Cardinal with its plugin bundle folder intact and try again.";
+        }
+        else if (! rack::system::exists(rack::asset::systemDir))
+        {
+            errorMessage = rack::string::f("System directory \"%s\" does not exist. "
+                                           "Make sure Cardinal was downloaded and installed correctly.",
+                                           rack::asset::systemDir.c_str());
+        }
+
+        if (! errorMessage.empty())
+            asyncDialog::create(errorMessage.c_str());
+
         context->window->step();
 
         rack::contextSet(nullptr);