diff --git a/starknet_devnet/blueprints/base.py b/starknet_devnet/blueprints/base.py
index e2e3b8549..d3b86458c 100644
--- a/starknet_devnet/blueprints/base.py
+++ b/starknet_devnet/blueprints/base.py
@@ -5,7 +5,7 @@
 from starknet_devnet.fee_token import FeeToken
 
 from starknet_devnet.state import state
-from starknet_devnet.util import StarknetDevnetException
+from starknet_devnet.util import StarknetDevnetException, check_valid_dump_path
 
 base = Blueprint("base", __name__)
 
@@ -61,6 +61,11 @@ def dump():
     if not dump_path:
         raise StarknetDevnetException(message="No path provided.", status_code=400)
 
+    try:
+        check_valid_dump_path(dump_path)
+    except ValueError as error:
+        raise StarknetDevnetException(status_code=400, message=str(error)) from error
+
     state.dumper.dump(dump_path)
     return Response(status=200)
 
diff --git a/starknet_devnet/server.py b/starknet_devnet/server.py
index ad7978314..d05da0dda 100644
--- a/starknet_devnet/server.py
+++ b/starknet_devnet/server.py
@@ -2,22 +2,22 @@
 A server exposing Starknet functionalities as API endpoints.
 """
 
-import sys
 from pickle import UnpicklingError
+import sys
 
 from flask import Flask, jsonify
 from flask_cors import CORS
 import meinheld
-
 from starkware.starkware_utils.error_handling import StarkException
+
 from .blueprints.base import base
 from .blueprints.gateway import gateway
 from .blueprints.feeder_gateway import feeder_gateway
 from .blueprints.postman import postman
 from .blueprints.rpc import rpc
-from .util import DumpOn, parse_args
-from .state import state
+from .util import DumpOn, check_valid_dump_path, parse_args
 from .starknet_wrapper import DevnetConfig
+from .state import state
 
 app = Flask(__name__)
 CORS(app)
@@ -44,6 +44,12 @@ def generate_accounts(args):
 
 def set_dump_options(args):
     """Assign dumping options from args to state."""
+    if args.dump_path:
+        try:
+            check_valid_dump_path(args.dump_path)
+        except ValueError as error:
+            sys.exit(str(error))
+
     state.dumper.dump_path = args.dump_path
     state.dumper.dump_on = args.dump_on
 
@@ -89,8 +95,8 @@ def main():
     # starknet_wrapper.origin = origin
 
     load_dumped(args)
-    generate_accounts(args)
     set_dump_options(args)
+    generate_accounts(args)
     enable_lite_mode(args)
     set_start_time(args)
     set_gas_price(args)
diff --git a/starknet_devnet/util.py b/starknet_devnet/util.py
index eec14254a..b181c4340 100644
--- a/starknet_devnet/util.py
+++ b/starknet_devnet/util.py
@@ -2,9 +2,10 @@
 Utility functions used across the project.
 """
 
+import argparse
 from dataclasses import dataclass
 from enum import Enum, auto
-import argparse
+import os
 import sys
 from typing import List, Dict, Union
 
@@ -302,3 +303,15 @@ def to_bytes(value: Union[int, bytes]) -> bytes:
     If bytes, return the received value
     """
     return value if isinstance(value, bytes) else value.to_bytes(32, "big")
+
+def check_valid_dump_path(dump_path: str):
+    """Checks if dump path is a directory. Raises ValueError if not."""
+
+    dump_path_dir = os.path.dirname(dump_path)
+
+    if not dump_path_dir:
+        # dump_path is just a file, with no parent dir
+        return
+
+    if not os.path.isdir(dump_path_dir):
+        raise ValueError(f"Invalid dump path: directory '{dump_path_dir}' not found.")
diff --git a/test/test_dump.py b/test/test_dump.py
index de9f8c051..cc5c53c4e 100644
--- a/test/test_dump.py
+++ b/test/test_dump.py
@@ -107,7 +107,7 @@ def test_load_if_no_file():
     """Test loading if dump file not present."""
     assert_no_dump_present(DUMP_PATH)
     devnet_proc = ACTIVE_DEVNET.start("--load-path", DUMP_PATH, stderr=subprocess.PIPE)
-    assert devnet_proc.returncode != 0
+    assert devnet_proc.returncode == 1
     expected_msg = f"Error: Cannot load from {DUMP_PATH}. Make sure the file exists and contains a Devnet dump.\n"
     assert expected_msg == devnet_proc.stderr.read().decode("utf-8")
 
@@ -117,6 +117,26 @@ def test_dumping_if_path_not_provided():
     resp = send_dump_request()
     assert resp.status_code == 400
 
+NONEXISTENT_DIR = "nonexistent-dir"
+
+def test_dumping_if_nonexistent_dir_via_cli():
+    """Assert failure if dumping attempted via cli with a path containing a nonexistent dir"""
+    invalid_path = os.path.join(NONEXISTENT_DIR, DUMP_PATH)
+    devnet_proc = ACTIVE_DEVNET.start("--dump-path", invalid_path, stderr=subprocess.PIPE)
+    assert devnet_proc.returncode == 1
+
+    expected_msg = f"Invalid dump path: directory '{NONEXISTENT_DIR}' not found.\n"
+    assert expected_msg == devnet_proc.stderr.read().decode("utf-8")
+
+@devnet_in_background()
+def test_dumping_if_nonexistent_dir_via_http():
+    """Assert failure if dumping attempted via http with a path containing a nonexistent dir"""
+    invalid_path = os.path.join(NONEXISTENT_DIR, DUMP_PATH)
+
+    resp = send_dump_request(dump_path=invalid_path)
+    assert resp.json()["message"] == f"Invalid dump path: directory '{NONEXISTENT_DIR}' not found."
+    assert resp.status_code == 400
+
 @devnet_in_background("--dump-path", DUMP_PATH)
 def test_dumping_if_path_provided_as_cli_option():
     """Test dumping if path provided as CLI option"""
@@ -207,7 +227,7 @@ def test_invalid_dump_on_option():
         stderr=subprocess.PIPE
     )
 
-    assert devnet_proc.returncode != 0
+    assert devnet_proc.returncode == 1
     expected_msg = b"Error: Invalid --dump-on option: obviously-invalid. Valid options: exit, transaction\n"
     assert devnet_proc.stderr.read() == expected_msg
 
@@ -215,7 +235,7 @@ def test_dump_path_not_present_with_dump_on_present():
     """Test behavior when dump-path is not present and dump-on is."""
     devnet_proc = ACTIVE_DEVNET.start("--dump-on", "exit", stderr=subprocess.PIPE)
 
-    assert devnet_proc.returncode != 0
+    assert devnet_proc.returncode == 1
     expected_msg = b"Error: --dump-path required if --dump-on present\n"
     assert devnet_proc.stderr.read() == expected_msg