diff --git a/changelogs/fragments/fix-sa-key-create.yml b/changelogs/fragments/fix-sa-key-create.yml
new file mode 100644
index 0000000..8f80405
--- /dev/null
+++ b/changelogs/fragments/fix-sa-key-create.yml
@@ -0,0 +1,4 @@
+bugfixes:
+  - gcp_iam_service_account_key - properly raise an error with context when no
+    service account of the specified name exists, instead of failing with a
+    stacktrace.
diff --git a/plugins/modules/gcp_iam_service_account_key.py b/plugins/modules/gcp_iam_service_account_key.py
index a34718d..11359b4 100644
--- a/plugins/modules/gcp_iam_service_account_key.py
+++ b/plugins/modules/gcp_iam_service_account_key.py
@@ -255,7 +255,11 @@ def main():
 
 def create(module):
     auth = GcpSession(module, 'iam')
-    json_content = return_if_object(module, auth.post(self_link(module), resource_to_request(module)))
+    response = auth.post(self_link(module), resource_to_request(module))
+    if response.status_code == 404:
+        name = replace_resource_dict(module.params['service_account'], 'name')
+        module.fail_json(msg="No such Service Account: %s" % name)
+    json_content = return_if_object(module, response)
     with open(module.params['path'], 'w') as f:
         private_key_contents = to_native(base64.b64decode(json_content['privateKeyData']))
         f.write(private_key_contents)
diff --git a/tests/integration/targets/gcp_iam_service_account_key/defaults/main.yml b/tests/integration/targets/gcp_iam_service_account_key/defaults/main.yml
index aa65c31..ba66644 100644
--- a/tests/integration/targets/gcp_iam_service_account_key/defaults/main.yml
+++ b/tests/integration/targets/gcp_iam_service_account_key/defaults/main.yml
@@ -1,3 +1,2 @@
 ---
-# defaults file
 resource_name: "{{ resource_prefix }}"
diff --git a/tests/integration/targets/gcp_iam_service_account_key/tasks/main.yml b/tests/integration/targets/gcp_iam_service_account_key/tasks/main.yml
new file mode 100644
index 0000000..f7d2482
--- /dev/null
+++ b/tests/integration/targets/gcp_iam_service_account_key/tasks/main.yml
@@ -0,0 +1,3 @@
+---
+- name: Service Account Keys tests
+  ansible.builtin.include_tasks: service-account-keys.yml
diff --git a/tests/integration/targets/gcp_iam_service_account_key/tasks/service-account-keys.yml b/tests/integration/targets/gcp_iam_service_account_key/tasks/service-account-keys.yml
new file mode 100644
index 0000000..6712476
--- /dev/null
+++ b/tests/integration/targets/gcp_iam_service_account_key/tasks/service-account-keys.yml
@@ -0,0 +1,140 @@
+---
+
+# Pre-test setup
+- name: Delete a service account
+  google.cloud.gcp_iam_service_account:
+    name: service-{{ resource_name.split("-")[-1] }}@{{ gcp_project }}.iam.gserviceaccount.com
+    display_name: Service Account used for Ansible integration tests
+    project: "{{ gcp_project }}"
+    auth_kind: "{{ gcp_cred_kind }}"
+    service_account_file: "{{ gcp_cred_file | default(omit) }}"
+    state: absent
+
+- name: Delete a service account key file
+  connection: local
+  ansible.builtin.file:
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+    state: absent
+
+- name: Verify that service_account_key was deleted
+  connection: local
+  ansible.builtin.stat:
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+  register: key_file
+
+- name: Verify that command succeeded
+  ansible.builtin.assert:
+    that:
+      - key_file.stat.exists == false
+
+- name: Create a service account
+  google.cloud.gcp_iam_service_account:
+    name: service-{{ resource_name.split("-")[-1] }}@{{ gcp_project }}.iam.gserviceaccount.com
+    display_name: Service Account used for Ansible integration tests
+    project: "{{ gcp_project }}"
+    auth_kind: "{{ gcp_cred_kind }}"
+    service_account_file: "{{ gcp_cred_file | default(omit) }}"
+    state: present
+
+#----------------------------------------------------------
+
+- name: Create a service account key
+  google.cloud.gcp_iam_service_account_key:
+    service_account:
+      name: service-{{ resource_name.split("-")[-1] }}@{{ gcp_project }}.iam.gserviceaccount.com
+    private_key_type: TYPE_GOOGLE_CREDENTIALS_FILE
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+
+    project: "{{ gcp_project }}"
+    auth_kind: "{{ gcp_cred_kind }}"
+    service_account_file: "{{ gcp_cred_file | default(omit) }}"
+    state: present
+  register: result
+
+- name: Assert changed is true
+  ansible.builtin.assert:
+    that:
+      - result.changed == true
+
+- name: Verify that service_account_key was created
+  connection: local
+  ansible.builtin.stat:
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+  register: key_file
+
+- name: Verify that command succeeded
+  ansible.builtin.assert:
+    that:
+      - key_file.stat.exists == true
+      - key_file.stat.isdir == false
+      - key_file.stat.size > 0
+
+# ----------------------------------------------------------------------------
+
+- name: Delete a service account key
+  google.cloud.gcp_iam_service_account_key:
+    service_account:
+      name: service-{{ resource_name.split("-")[-1] }}@{{ gcp_project }}.iam.gserviceaccount.com
+    private_key_type: TYPE_GOOGLE_CREDENTIALS_FILE
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+
+    project: "{{ gcp_project }}"
+    auth_kind: "{{ gcp_cred_kind }}"
+    service_account_file: "{{ gcp_cred_file | default(omit) }}"
+    state: absent
+  register: result
+
+- name: Assert changed is true
+  ansible.builtin.assert:
+    that:
+      - result.changed == true
+
+# ----------------------------------------------------------------------------
+
+# Pre-test tear down
+- name: Delete a service account
+  google.cloud.gcp_iam_service_account:
+    name: service-{{ resource_name.split("-")[-1] }}@{{ gcp_project }}.iam.gserviceaccount.com
+    display_name: Service Account used for Ansible integration tests
+    project: "{{ gcp_project }}"
+    auth_kind: "{{ gcp_cred_kind }}"
+    service_account_file: "{{ gcp_cred_file | default(omit) }}"
+    state: absent
+
+- name: Delete a service account key file
+  connection: local
+  ansible.builtin.file:
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+    state: absent
+
+#----------------------------------------------------------
+
+- name: Create a service account key with icorrect service account name
+  google.cloud.gcp_iam_service_account_key:
+    service_account:
+      name: service-{{ resource_name.split("-")[-1] }}
+    private_key_type: TYPE_GOOGLE_CREDENTIALS_FILE
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+
+    project: "{{ gcp_project }}"
+    auth_kind: "{{ gcp_cred_kind }}"
+    service_account_file: "{{ gcp_cred_file | default(omit) }}"
+    state: present
+  register: result
+  failed_when: result.failed == false
+
+- name: Assert changed is true
+  ansible.builtin.assert:
+    that:
+      - result.msg is match('No such Service Account')
+
+- name: Verify that service_account_key was not created
+  connection: local
+  ansible.builtin.stat:
+    path: "{{ gcp_cred_file }}-temporary-service-account-key"
+  register: key_file
+
+- name: Verify that command succeeded
+  ansible.builtin.assert:
+    that:
+      - key_file.stat.exists == false