diff --git a/pkg/blockbuilder/tsdb.go b/pkg/blockbuilder/tsdb.go
index ee2d610fe78..a3fcaf0c6ff 100644
--- a/pkg/blockbuilder/tsdb.go
+++ b/pkg/blockbuilder/tsdb.go
@@ -316,30 +316,26 @@ type blockUploader func(_ context.Context, tenantID, dbDir string, blockIDs []st
 // All the DBs are closed and directories cleared irrespective of success or failure of this function.
 func (b *TSDBBuilder) CompactAndUpload(ctx context.Context, uploadBlocks blockUploader) (_ int, err error) {
 	var (
-		doneDBsMu sync.Mutex
-		doneDBs   = make(map[*userTSDB]bool)
+		closedDBsMu sync.Mutex
+		closedDBs   = make(map[*userTSDB]bool)
 	)
 
 	b.tsdbsMu.Lock()
 	defer func() {
-		b.tsdbsMu.Unlock()
-
 		var merr multierror.MultiError
 		merr.Add(err)
-		// If some TSDB was not compacted or uploaded, it will be re-tried in the next cycle, so we remove it here.
+		// If some TSDB was not compacted or uploaded, it will be re-tried in the next cycle, so we always remove it here.
 		for _, db := range b.tsdbs {
-			if doneDBs[db] {
-				continue
+			if !closedDBs[db] {
+				merr.Add(db.Close())
 			}
-			dbDir := db.Dir()
-			merr.Add(db.Close())
-			merr.Add(os.RemoveAll(dbDir))
+			merr.Add(os.RemoveAll(db.Dir()))
 		}
-
-		err = merr.Err()
-
 		// Clear the map so that it can be released from the memory. Not setting to nil in case we want to reuse the TSDBBuilder.
 		clear(b.tsdbs)
+		b.tsdbsMu.Unlock()
+
+		err = merr.Err()
 	}()
 
 	level.Info(b.logger).Log("msg", "compacting and uploading blocks", "num_tsdb", len(b.tsdbs))
@@ -384,14 +380,14 @@ func (b *TSDBBuilder) CompactAndUpload(ctx context.Context, uploadBlocks blockUp
 				return err
 			}
 
+			closedDBsMu.Lock()
+			closedDBs[db] = true
+			closedDBsMu.Unlock()
+
 			if err := uploadBlocks(ctx, tenant.tenantID, dbDir, blockIDs); err != nil {
 				return err
 			}
 
-			doneDBsMu.Lock()
-			doneDBs[db] = true
-			doneDBsMu.Unlock()
-
 			// Clear the DB from the disk. Don't need it anymore.
 			return os.RemoveAll(dbDir)
 		})
diff --git a/pkg/blockbuilder/tsdb_test.go b/pkg/blockbuilder/tsdb_test.go
index 9b1ad07cfc7..ff36eb18301 100644
--- a/pkg/blockbuilder/tsdb_test.go
+++ b/pkg/blockbuilder/tsdb_test.go
@@ -281,6 +281,30 @@ func TestTSDBBuilder(t *testing.T) {
 	}
 }
 
+func TestTSDBBuilder_CompactAndUpload_fail(t *testing.T) {
+	overrides, err := validation.NewOverrides(defaultLimitsTestConfig(), nil)
+	require.NoError(t, err)
+	metrics := newTSDBBBuilderMetrics(prometheus.NewPedanticRegistry())
+	builder := NewTSDBBuilder(log.NewNopLogger(), t.TempDir(), mimir_tsdb.BlocksStorageConfig{}, overrides, metrics, 0)
+	t.Cleanup(func() {
+		require.NoError(t, builder.Close())
+	})
+
+	userID := strconv.Itoa(rand.Int())
+	tenant := tsdbTenant{
+		partitionID: 0,
+		tenantID:    userID,
+	}
+	_, err = builder.getOrCreateTSDB(tenant)
+	require.NoError(t, err)
+
+	errUploadFailed := fmt.Errorf("upload failed")
+	_, err = builder.CompactAndUpload(context.Background(), func(_ context.Context, _, _ string, _ []string) error {
+		return errUploadFailed
+	})
+	require.ErrorIs(t, err, errUploadFailed)
+}
+
 func compareQuery(t *testing.T, db *tsdb.DB, expSamples []mimirpb.Sample, expHistograms []mimirpb.Histogram, matchers ...*labels.Matcher) {
 	querier, err := db.Querier(math.MinInt64, math.MaxInt64)
 	require.NoError(t, err)