diff --git a/cargo/lib/dependabot/cargo/update_checker/version_resolver.rb b/cargo/lib/dependabot/cargo/update_checker/version_resolver.rb
index 897a2a47eb5..85f4492b1d8 100644
--- a/cargo/lib/dependabot/cargo/update_checker/version_resolver.rb
+++ b/cargo/lib/dependabot/cargo/update_checker/version_resolver.rb
@@ -214,8 +214,6 @@ def handle_cargo_errors(error)
             raise Dependabot::GitDependencyReferenceNotFound, dependency_url
           end
 
-          raise Dependabot::DependencyFileNotResolvable, error.message if resolvability_error?(error.message)
-
           if workspace_native_library_update_error?(error.message)
             # This happens when we're updating one part of a workspace which
             # triggers an update of a subdependency that uses a native library,
@@ -237,6 +235,8 @@ def handle_cargo_errors(error)
             return nil
           end
 
+          raise Dependabot::DependencyFileNotResolvable, error.message if resolvability_error?(error.message)
+
           raise error
         end
         # rubocop:enable Metrics/AbcSize
diff --git a/cargo/spec/dependabot/cargo/update_checker/version_resolver_spec.rb b/cargo/spec/dependabot/cargo/update_checker/version_resolver_spec.rb
index c3761b50e10..4553efc68c2 100644
--- a/cargo/spec/dependabot/cargo/update_checker/version_resolver_spec.rb
+++ b/cargo/spec/dependabot/cargo/update_checker/version_resolver_spec.rb
@@ -533,5 +533,16 @@
       let(:dependency_files) { unprepared_dependency_files }
       it { is_expected.to eq(Gem::Version.new("0.1.80")) }
     end
+
+    context "when multiple packages have a version conflict with one another" do
+      let(:dependency_name) { "ructe" }
+      let(:dependency_version) { "0b8acfe5eea15713bc56c156f974fa05967d0353" }
+      let(:string_req) { nil }
+      let(:source) { { type: "git", url: "https://github.com/kaj/ructe" } }
+      let(:dependency_files) { project_dependency_files("version_conflict") }
+      let(:unprepared_dependency_files) { project_dependency_files("version_conflict") }
+
+      specify { expect(subject).to be_nil }
+    end
   end
 end
diff --git a/cargo/spec/fixtures/projects/version_conflict/Cargo.lock b/cargo/spec/fixtures/projects/version_conflict/Cargo.lock
new file mode 100644
index 00000000000..c3f17b0faa4
--- /dev/null
+++ b/cargo/spec/fixtures/projects/version_conflict/Cargo.lock
@@ -0,0 +1,290 @@
+# This file is automatically @generated by Cargo.
+# It is not intended for manual editing.
+[[package]]
+name = "arrayvec"
+version = "0.5.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "23b62fc65de8e4e7f52534fb52b0f3ed04746ae267519eef2a83941e8085068b"
+
+[[package]]
+name = "askama"
+version = "0.10.5"
+source = "git+https://github.com/djc/askama?branch=main#bc2e92e7d64a2987647f8702c4e5680acef03943"
+dependencies = [
+ "askama_derive",
+ "askama_escape",
+ "askama_shared",
+]
+
+[[package]]
+name = "askama_derive"
+version = "0.10.5"
+source = "git+https://github.com/djc/askama?branch=main#bc2e92e7d64a2987647f8702c4e5680acef03943"
+dependencies = [
+ "askama_shared",
+ "proc-macro2",
+ "syn",
+]
+
+[[package]]
+name = "askama_escape"
+version = "0.10.1"
+source = "git+https://github.com/djc/askama?branch=main#bc2e92e7d64a2987647f8702c4e5680acef03943"
+
+[[package]]
+name = "askama_shared"
+version = "0.11.1"
+source = "git+https://github.com/djc/askama?branch=main#bc2e92e7d64a2987647f8702c4e5680acef03943"
+dependencies = [
+ "askama_escape",
+ "humansize",
+ "nom 6.0.1",
+ "num-traits",
+ "percent-encoding",
+ "proc-macro2",
+ "quote",
+ "serde",
+ "syn",
+ "toml",
+]
+
+[[package]]
+name = "autocfg"
+version = "1.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cdb031dd78e28731d87d56cc8ffef4a8f36ca26c38fe2de700543e627f8a464a"
+
+[[package]]
+name = "base64"
+version = "0.13.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "904dfeac50f3cdaba28fc6f57fdcddb75f49ed61346676a78c4ffe55877802fd"
+
+[[package]]
+name = "bitflags"
+version = "1.2.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cf1de2fe8c75bc145a2f577add951f8134889b4795d47466a54a5c846d691693"
+
+[[package]]
+name = "bitvec"
+version = "0.19.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a7ba35e9565969edb811639dbebfe34edc0368e472c5018474c8eb2543397f81"
+dependencies = [
+ "funty",
+ "radium",
+ "tap",
+ "wyz",
+]
+
+[[package]]
+name = "bytecount"
+version = "0.6.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "72feb31ffc86498dacdbd0fcebb56138e7177a8cc5cea4516031d15ae85a742e"
+
+[[package]]
+name = "cfg-if"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "baf1de4339761588bc0619e3cbc0120ee582ebb74b53b4efbf79117bd2da40fd"
+
+[[package]]
+name = "either"
+version = "1.6.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e78d4f1cc4ae33bbfc157ed5d5a5ef3bc29227303d595861deb238fcec4e9457"
+
+[[package]]
+name = "funty"
+version = "1.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0ba62103ce691c2fd80fbae2213dfdda9ce60804973ac6b6e97de818ea7f52c8"
+
+[[package]]
+name = "humansize"
+version = "1.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b6cab2627acfc432780848602f3f558f7e9dd427352224b0d9324025796d2a5e"
+
+[[package]]
+name = "itertools"
+version = "0.9.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "284f18f85651fe11e8a991b2adb42cb078325c996ed026d994719efcfca1d54b"
+dependencies = [
+ "either",
+]
+
+[[package]]
+name = "lexical-core"
+version = "0.7.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "db65c6da02e61f55dae90a0ae427b2a5f6b3e8db09f58d10efab23af92592616"
+dependencies = [
+ "arrayvec",
+ "bitflags",
+ "cfg-if 0.1.10",
+ "ryu",
+ "static_assertions",
+]
+
+[[package]]
+name = "md5"
+version = "0.7.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "490cc448043f947bae3cbee9c203358d62dbee0db12107a74be5c30ccfd09771"
+
+[[package]]
+name = "memchr"
+version = "2.3.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0ee1c47aaa256ecabcaea351eae4a9b01ef39ed810004e298d2511ed284b1525"
+
+[[package]]
+name = "nom"
+version = "6.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "88034cfd6b4a0d54dd14f4a507eceee36c0b70e5a02236c4e4df571102be17f0"
+dependencies = [
+ "bitvec",
+ "memchr",
+ "version_check",
+]
+
+[[package]]
+name = "num-traits"
+version = "0.2.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "9a64b1ec5cda2586e284722486d802acf1f7dbdc623e2bfc57e65ca1cd099290"
+dependencies = [
+ "autocfg",
+]
+
+[[package]]
+name = "percent-encoding"
+version = "2.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d4fd5641d01c8f18a23da7b6fe29298ff4b55afcccdf78973b24cf3175fee32e"
+
+[[package]]
+name = "proc-macro2"
+version = "1.0.24"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1e0704ee1a7e00d7bb417d0770ea303c1bccbabf0ef1667dae92b5967f5f8a71"
+dependencies = [
+ "unicode-xid",
+]
+
+[[package]]
+name = "quote"
+version = "1.0.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "aa563d17ecb180e500da1cfd2b028310ac758de548efdd203e18f283af693f37"
+dependencies = [
+ "proc-macro2",
+]
+
+[[package]]
+name = "radium"
+version = "0.5.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "941ba9d78d8e2f7ce474c015eea4d9c6d25b6a3327f9832ee29a4de27f91bbb8"
+
+[[package]]
+name = "ructe"
+version = "0.13.1-PRE"
+source = "git+https://github.com/kaj/ructe#0b8acfe5eea15713bc56c156f974fa05967d0353"
+dependencies = [
+ "base64",
+ "bytecount",
+ "itertools",
+ "md5",
+ "nom 5.1.2",
+]
+
+[[package]]
+name = "ryu"
+version = "1.0.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "71d301d4193d031abdd79ff7e3dd721168a9572ef3fe51a1517aba235bd8f86e"
+
+[[package]]
+name = "serde"
+version = "1.0.118"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "06c64263859d87aa2eb554587e2d23183398d617427327cf2b3d0ed8c69e4800"
+dependencies = [
+ "serde_derive",
+]
+
+[[package]]
+name = "serde_derive"
+version = "1.0.118"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c84d3526699cd55261af4b941e4e725444df67aa4f9e6a3564f18030d12672df"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
+
+[[package]]
+name = "static_assertions"
+version = "1.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a2eb9349b6444b326872e140eb1cf5e7c522154d69e7a0ffb0fb81c06b37543f"
+
+[[package]]
+name = "syn"
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+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "9a2af957a63d6bd42255c359c93d9bfdb97076bd3b820897ce55ffbfbf107f44"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "unicode-xid",
+]
+
+[[package]]
+name = "tap"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "36474e732d1affd3a6ed582781b3683df3d0563714c59c39591e8ff707cf078e"
+
+
+[[package]]
+name = "toml"
+version = "0.5.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "75cf45bb0bef80604d001caaec0d09da99611b3c0fd39d3080468875cdb65645"
+dependencies = [
+ "serde",
+]
+
+[[package]]
+name = "unicode-xid"
+version = "0.2.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f7fe0bb3479651439c9112f72b6c505038574c9fbb575ed1bf3b797fa39dd564"
+
+[[package]]
+name = "version_check"
+version = "0.9.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b5a972e5669d67ba988ce3dc826706fb0a8b01471c088cb0b6110b805cc36aed"
+
+[[package]]
+name = "version_conflict"
+version = "0.1.0"
+dependencies = [
+ "askama",
+ "ructe",
+]
+
+[[package]]
+name = "wyz"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "85e60b0d1b5f99db2556934e21937020776a5d31520bf169e851ac44e6420214"
diff --git a/cargo/spec/fixtures/projects/version_conflict/Cargo.toml b/cargo/spec/fixtures/projects/version_conflict/Cargo.toml
new file mode 100644
index 00000000000..797f3587cc8
--- /dev/null
+++ b/cargo/spec/fixtures/projects/version_conflict/Cargo.toml
@@ -0,0 +1,10 @@
+[package]
+name = "version_conflict"
+version = "0.1.0"
+authors = ["support@dependabot.com"]
+
+[dependencies]
+askama = { git = "https://github.com/djc/askama", branch = "main" }
+
+[build-dependencies]
+ructe = { git = "https://github.com/kaj/ructe" }
diff --git a/cargo/spec/fixtures/projects/version_conflict/src/main.rs b/cargo/spec/fixtures/projects/version_conflict/src/main.rs
new file mode 100644
index 00000000000..e69de29bb2d