diff --git a/lib/ansible/modules/packaging/os/dnf.py b/lib/ansible/modules/packaging/os/dnf.py
index d2afbdb7d2..4aa94f3beb 100644
--- a/lib/ansible/modules/packaging/os/dnf.py
+++ b/lib/ansible/modules/packaging/os/dnf.py
@@ -393,7 +393,10 @@ def ensure(module, base, state, names, autoremove):
                 # best effort causes to install the latest package
                 # even if not previously installed
                 base.conf.best = True
-                base.install(pkg_spec)
+                try:
+                    base.install(pkg_spec)
+                except dnf.exceptions.MarkingError as e:
+                    failures.append((pkg_spec, to_native(e)))
 
         else:
             # state == absent
diff --git a/test/integration/targets/dnf/tasks/dnf.yml b/test/integration/targets/dnf/tasks/dnf.yml
index 70631ff8b8..811e8475e5 100644
--- a/test/integration/targets/dnf/tasks/dnf.yml
+++ b/test/integration/targets/dnf/tasks/dnf.yml
@@ -192,7 +192,7 @@
       - sharutils
     state: removed
 
-- name: install non-existent rpm 
+- name: install non-existent rpm
   dnf:
     name: "{{ item }}"
   with_items:
@@ -410,3 +410,19 @@
     that:
         - "'changed' in dnf_result"
         - "'results' in dnf_result"
+
+# https://github.com/ansible/ansible/issues/39704
+- name: install non-existent rpm, state=latest
+  dnf:
+    name: non-existent-rpm
+    state: latest
+  ignore_errors: yes
+  register: dnf_result
+
+- name: verify the result
+  assert:
+    that:
+        - "dnf_result is failed"
+        - "'non-existent-rpm' in dnf_result['failures'][0]"
+        - "'no package matched' in dnf_result['failures'][0]"
+        - "'Failed to install some of the specified packages' in dnf_result['msg']"