diff --git a/db/migrate/20240920152544_set_versions_name_collation.rb b/db/migrate/20240920152544_set_versions_name_collation.rb
index 1109bf9eec4f..cbfb9541b8cb 100644
--- a/db/migrate/20240920152544_set_versions_name_collation.rb
+++ b/db/migrate/20240920152544_set_versions_name_collation.rb
@@ -1,8 +1,23 @@
 class SetVersionsNameCollation < ActiveRecord::Migration[7.1]
   def up
-    execute <<-SQL.squish
-      CREATE COLLATION IF NOT EXISTS versions_name (provider = icu, locale = 'und-u-kn-true');
-    SQL
+    begin
+      execute <<-SQL.squish
+        CREATE COLLATION IF NOT EXISTS versions_name (provider = icu, locale = 'und-u-kn-true');
+      SQL
+    rescue StandardError => e
+      raise unless e.message.include?("encoding")
+
+      abort <<~MESSAGE
+        \e[31mERROR:\e[0m Failed to create an ICU collation with current database encoding.
+        You need to change the database encoding before proceeding.
+
+        Please check the instructions on how to do it:
+        https://www.openproject.org/docs/installation-and-operations/misc/changing-database-encoding/
+
+        Original error:
+          #{e.message}
+      MESSAGE
+    end
 
     change_column :versions, :name, :string, collation: "versions_name"
   end