diff --git a/metadata-ingestion/src/datahub/ingestion/source/iceberg/iceberg.py b/metadata-ingestion/src/datahub/ingestion/source/iceberg/iceberg.py
index 7f9fe4279f7e22..0798c5268e8b10 100644
--- a/metadata-ingestion/src/datahub/ingestion/source/iceberg/iceberg.py
+++ b/metadata-ingestion/src/datahub/ingestion/source/iceberg/iceberg.py
@@ -2,7 +2,7 @@
 import logging
 import threading
 import uuid
-from typing import Any, Dict, Iterable, List, Optional
+from typing import Any, Dict, Iterable, List, Optional, Tuple
 
 from dateutil import parser as dateutil_parser
 from pyiceberg.catalog import Catalog
@@ -185,16 +185,9 @@ def _get_datasets(self, catalog: Catalog) -> Iterable[Identifier]:
     def get_workunits_internal(self) -> Iterable[MetadataWorkUnit]:
         thread_local = threading.local()
 
-        def _process_dataset(dataset_path: Identifier) -> Iterable[MetadataWorkUnit]:
-            LOGGER.debug(f"Processing dataset for path {dataset_path}")
-            dataset_name = ".".join(dataset_path)
-            if not self.config.table_pattern.allowed(dataset_name):
-                # Dataset name is rejected by pattern, report as dropped.
-                self.report.report_dropped(dataset_name)
-                LOGGER.debug(
-                    f"Skipping table {dataset_name} due to not being allowed by the config pattern"
-                )
-                return
+        def _try_processing_dataset(
+            dataset_path: Tuple[str, ...], dataset_name: str
+        ) -> Iterable[MetadataWorkUnit]:
             try:
                 if not hasattr(thread_local, "local_catalog"):
                     LOGGER.debug(
@@ -250,10 +243,31 @@ def _process_dataset(dataset_path: Identifier) -> Iterable[MetadataWorkUnit]:
                 LOGGER.warning(
                     f"Iceberg Rest Catalog server error (500 status) encountered when processing table {dataset_path}, skipping it."
                 )
+            except ValueError as e:
+                if "Could not initialize FileIO" not in str(e):
+                    raise
+                self.report.warning(
+                    "Could not initialize FileIO",
+                    f"Could not initialize FileIO for {dataset_path} due to: {e}",
+                )
+
+        def _process_dataset(dataset_path: Identifier) -> Iterable[MetadataWorkUnit]:
+            try:
+                LOGGER.debug(f"Processing dataset for path {dataset_path}")
+                dataset_name = ".".join(dataset_path)
+                if not self.config.table_pattern.allowed(dataset_name):
+                    # Dataset name is rejected by pattern, report as dropped.
+                    self.report.report_dropped(dataset_name)
+                    LOGGER.debug(
+                        f"Skipping table {dataset_name} due to not being allowed by the config pattern"
+                    )
+                    return []
+
+                yield from _try_processing_dataset(dataset_path, dataset_name)
             except Exception as e:
                 self.report.report_failure(
                     "general",
-                    f"Failed to create workunit for dataset {dataset_name}: {e}",
+                    f"Failed to create workunit for dataset {dataset_path}: {e}",
                 )
                 LOGGER.exception(
                     f"Exception while processing table {dataset_path}, skipping it.",
diff --git a/metadata-ingestion/tests/unit/test_iceberg.py b/metadata-ingestion/tests/unit/test_iceberg.py
index 12a7228ab792c2..5f808bdf80da53 100644
--- a/metadata-ingestion/tests/unit/test_iceberg.py
+++ b/metadata-ingestion/tests/unit/test_iceberg.py
@@ -968,6 +968,9 @@ def _raise_no_such_table_exception():
     def _raise_server_error():
         raise ServerError()
 
+    def _raise_fileio_error():
+        raise ValueError("Could not initialize FileIO: abc.dummy.fileio")
+
     mock_catalog = MockCatalog(
         {
             "namespaceA": {
@@ -1024,6 +1027,7 @@ def _raise_server_error():
                 "table7": _raise_file_not_found_error,
                 "table8": _raise_no_such_iceberg_table_exception,
                 "table9": _raise_server_error,
+                "table10": _raise_fileio_error,
             }
         }
     )
@@ -1047,7 +1051,7 @@ def _raise_server_error():
                 "urn:li:dataset:(urn:li:dataPlatform:iceberg,namespaceA.table4,PROD)",
             ],
         )
-        assert source.report.warnings.total_elements == 5
+        assert source.report.warnings.total_elements == 6
         assert source.report.failures.total_elements == 0
         assert source.report.tables_scanned == 4
 
@@ -1058,6 +1062,9 @@ def test_handle_unexpected_exceptions() -> None:
     def _raise_exception():
         raise Exception()
 
+    def _raise_other_value_error_exception():
+        raise ValueError("Other value exception")
+
     mock_catalog = MockCatalog(
         {
             "namespaceA": {
@@ -1110,6 +1117,7 @@ def _raise_exception():
                     catalog=None,
                 ),
                 "table5": _raise_exception,
+                "table6": _raise_other_value_error_exception,
             }
         }
     )
@@ -1136,3 +1144,12 @@ def _raise_exception():
         assert source.report.warnings.total_elements == 0
         assert source.report.failures.total_elements == 1
         assert source.report.tables_scanned == 4
+        # Needed to make sure all failures are recognized properly
+        failures = [entry for entry in source.report.failures[0][1].context]
+        TestCase().assertCountEqual(
+            failures,
+            [
+                "Failed to create workunit for dataset ('namespaceA', 'table6'): Other value exception",
+                "Failed to create workunit for dataset ('namespaceA', 'table5'): ",
+            ],
+        )