diff --git a/src/snowflake/cli/_plugins/init/commands.py b/src/snowflake/cli/_plugins/init/commands.py
index dc3de59c28..2dcb569e52 100644
--- a/src/snowflake/cli/_plugins/init/commands.py
+++ b/src/snowflake/cli/_plugins/init/commands.py
@@ -68,7 +68,8 @@ def _path_argument_callback(path: str) -> str:
     show_default=False,
 )
 SourceOption = typer.Option(
-    default=DEFAULT_SOURCE,
+    DEFAULT_SOURCE,
+    "--template-source",
     help=f"local path to template directory or URL to git repository with templates.",
 )
 VariablesOption = variables_option(
@@ -132,13 +133,13 @@ def _fetch_remote_template(
     return template_root
 
 
-def _read_template_metadata(template_root: SecurePath) -> Template:
+def _read_template_metadata(template_root: SecurePath, args_error_msg: str) -> Template:
     """Parse template.yml file."""
     template_metadata_path = template_root / TEMPLATE_METADATA_FILE_NAME
     log.debug("Reading template metadata from %s", template_metadata_path.path)
     if not template_metadata_path.exists():
         raise InvalidTemplate(
-            f"Template does not have {TEMPLATE_METADATA_FILE_NAME} file."
+            f"File {TEMPLATE_METADATA_FILE_NAME} not found. {args_error_msg}"
         )
     with template_metadata_path.open(read_file_limit_mb=DEFAULT_SIZE_LIMIT_MB) as fd:
         yaml_contents = yaml.safe_load(fd) or {}
@@ -203,6 +204,7 @@ def init(
     is_remote = any(
         template_source.startswith(prefix) for prefix in ["git@", "http://", "https://"]  # type: ignore
     )
+    args_error_msg = f"Check whether {TemplateOption.param_decls[0]} and {SourceOption.param_decls[0]} arguments are correct."
 
     # copy/download template into tmpdir, so it is going to be removed in case command ends with an error
     with SecurePath.temporary_directory() as tmpdir:
@@ -217,7 +219,9 @@ def init(
                 destination=tmpdir,
             )
 
-        template_metadata = _read_template_metadata(template_root)
+        template_metadata = _read_template_metadata(
+            template_root, args_error_msg=args_error_msg
+        )
         if template_metadata.minimum_cli_version:
             _validate_cli_version(template_metadata.minimum_cli_version)
 
diff --git a/tests/test_init.py b/tests/test_init.py
index a5ccac6ab0..15ae2b5437 100644
--- a/tests/test_init.py
+++ b/tests/test_init.py
@@ -63,7 +63,11 @@ def test_error_missing_template_yml(runner, test_projects_path, temp_dir):
         ]
     )
     assert result.exit_code == 1
-    assert "Template does not have template.yml file." in result.output
+    assert (
+        "File template.yml not found. Check whether --template and --template-source"
+        in result.output
+    )
+    assert "arguments are correct." in result.output
     assert not Path(project_name).exists()
 
 
diff --git a/tests_integration/test_init.py b/tests_integration/test_init.py
index 4116b03f56..90893ffd19 100644
--- a/tests_integration/test_init.py
+++ b/tests_integration/test_init.py
@@ -51,7 +51,11 @@ def test_missing_template_yml(runner, temporary_working_directory):
     result = runner.invoke(["init", path, "--template-source", url])
     assert result.exit_code == 1
     assert "Error" in result.output
-    assert f"Template does not have template.yml file." in result.output
+    assert (
+        "File template.yml not found. Check whether --template and --template-source"
+        in result.output
+    )
+    assert "arguments are correct" in result.output
 
 
 @pytest.mark.integration