diff --git a/lib/ruby_lsp/server.rb b/lib/ruby_lsp/server.rb
index 2b19ac31d..170c755da 100644
--- a/lib/ruby_lsp/server.rb
+++ b/lib/ruby_lsp/server.rb
@@ -3,6 +3,8 @@
 
 module RubyLsp
   class Server < BaseServer
+    NON_REPORTABLE_SETUP_ERRORS = [Bundler::GemNotFound, Bundler::GitError].freeze #: Array[singleton(StandardError)]
+
     # Only for testing
     #: GlobalState
     attr_reader :global_state
@@ -315,7 +317,7 @@ def run_initialize(message)
 
       global_state_notifications.each { |notification| send_message(notification) }
 
-      if @setup_error
+      if @setup_error && NON_REPORTABLE_SETUP_ERRORS.none? { |error_class| @setup_error.is_a?(error_class) }
         send_message(Notification.telemetry(
           type: "error",
           errorMessage: @setup_error.message,
diff --git a/test/server_test.rb b/test/server_test.rb
index b4c6e97d5..5996bc05a 100644
--- a/test/server_test.rb
+++ b/test/server_test.rb
@@ -647,6 +647,21 @@ def test_errors_include_telemetry_data
     assert_match("mocha/exception_raiser.rb", data[:backtrace])
   end
 
+  def test_gem_not_found_setup_error_does_not_send_telemetry
+    RubyLsp::Notification.expects(:telemetry).never
+    run_initialize_server_with_setup_error(Bundler::GemNotFound.new("Could not find gem 'foo'"))
+  end
+
+  def test_git_error_setup_error_does_not_send_telemetry
+    RubyLsp::Notification.expects(:telemetry).never
+    run_initialize_server_with_setup_error(Bundler::GitError.new("Revision abc123 does not exist"))
+  end
+
+  def test_other_setup_errors_are_reported_to_telemetry
+    RubyLsp::Notification.expects(:telemetry).once
+    run_initialize_server_with_setup_error(StandardError.new("something unexpected"))
+  end
+
   def test_handles_editor_indexing_settings
     capture_io do
       @server.process_message({
@@ -1714,6 +1729,22 @@ def test_launch_bundle_compose_forwards_argv_to_launcher
 
   private
 
+  def run_initialize_server_with_setup_error(error)
+    server = RubyLsp::Server.new(test_mode: true, setup_error: error)
+    capture_subprocess_io do
+      server.process_message({
+        id: 1,
+        method: "initialize",
+        params: {
+          initializationOptions: { enabledFeatures: [] },
+          capabilities: { general: { positionEncodings: ["utf-8"] } },
+        },
+      })
+    end
+  ensure
+    server&.run_shutdown
+  end
+
   def wait_for_indexing
     message = @server.pop_response
     until message.is_a?(RubyLsp::Notification) && message.method == "$/progress" &&