diff --git a/app/services/projects/destroy_service.rb b/app/services/projects/destroy_service.rb
index 7b0a08af2907d47009bd6bbb3b4e9ecc2b62efb1..7e38aacc91a39c527f262af65527a9a475fb58f0 100644
--- a/app/services/projects/destroy_service.rb
+++ b/app/services/projects/destroy_service.rb
@@ -25,27 +25,15 @@ module Projects
 
       Projects::UnlinkForkService.new(project, current_user).execute
 
-      Project.transaction do
-        unless remove_legacy_registry_tags
-          raise_error('Failed to remove some tags in project container registry. Please try again or contact administrator.')
-        end
-
-        unless remove_repository(repo_path)
-          raise_error('Failed to remove project repository. Please try again or contact administrator.')
-        end
-
-        unless remove_repository(wiki_path)
-          raise_error('Failed to remove wiki repository. Please try again or contact administrator.')
-        end
-
-        project.team.truncate
-        project.destroy!
-      end
+      attempt_destroy_transaction(project, repo_path, wiki_path)
 
       system_hook_service.execute_hooks_for(project, :destroy)
 
       log_info("Project \"#{project.full_path}\" was removed")
       true
+    rescue Projects::DestroyService::DestroyError => error
+      Rails.logger.error("Deletion failed on #{project.full_path} with the following message: #{error.message}")
+      false
     end
 
     private
@@ -71,6 +59,28 @@ module Projects
       end
     end
 
+    def attempt_destroy_transaction(project, repo_path, wiki_path)
+      Project.transaction do
+        unless remove_legacy_registry_tags
+          raise_error('Failed to remove some tags in project container registry. Please try again or contact administrator.')
+        end
+
+        unless remove_repository(repo_path)
+          raise_error('Failed to remove project repository. Please try again or contact administrator.')
+        end
+
+        unless remove_repository(wiki_path)
+          raise_error('Failed to remove wiki repository. Please try again or contact administrator.')
+        end
+
+        project.team.truncate
+        project.destroy!
+      end
+    rescue Exception => error # rubocop:disable Lint/RescueException
+      project.update_attributes(delete_error: error.message, pending_delete: false)
+      raise
+    end
+
     ##
     # This method makes sure that we correctly remove registry tags
     # for legacy image repository (when repository path equals project path).
diff --git a/app/workers/project_destroy_worker.rb b/app/workers/project_destroy_worker.rb
index 209cf11e8936142e1f4348b522b00dac413aac79..e695ec060f0e9c934652f4a0c4ab49ad52da0f06 100644
--- a/app/workers/project_destroy_worker.rb
+++ b/app/workers/project_destroy_worker.rb
@@ -7,10 +7,7 @@ class ProjectDestroyWorker
     user = User.find(user_id)
 
     ::Projects::DestroyService.new(project, user, params.symbolize_keys).execute
-  rescue Exception => error # rubocop:disable Lint/RescueException
-    project&.update_attributes(delete_error: error.message, pending_delete: false)
-    Rails.logger.error("Deletion failed on #{project&.full_path} with the following message: #{error.message}")
-
-    raise
+  rescue ActiveRecord::RecordNotFound => error
+    logger.error("Failed to delete project #{project.path_with_namespace} (#{project.id}): #{error.message}")
   end
 end