diff --git a/initialization_rollback_test.go b/initialization_rollback_test.go
new file mode 100644
index 0000000..0b20c16
--- /dev/null
+++ b/initialization_rollback_test.go
@@ -0,0 +1,83 @@
+package component_test
+
+import (
+	"context"
+	_ "embed"
+	"errors"
+	"os"
+	"path/filepath"
+	"testing"
+
+	component "github.com/wago-org/component-model"
+)
+
+//go:embed testdata/initialization_resource_failure.wasm
+var initializationResourceFailure []byte
+
+func TestGraphInitializationFailureClosesHostResources(t *testing.T) {
+	for _, cleanupFails := range []bool{false, true} {
+		name := "successful-cleanup"
+		if cleanupFails {
+			name = "cleanup-error"
+		}
+		t.Run(name, func(t *testing.T) {
+			rt, ref := loadService(t, nil)
+			defer rt.Close()
+			setupErr := errors.New("initializer setup failed")
+			cleanupErr := errors.New("resource cleanup failed")
+			const iface = "test:initialization/resources"
+			const tag uint32 = 700
+			root := t.TempDir()
+			var files []*os.File
+			var dropped []uint32
+			opts := []component.Option{
+				component.WithResourceTag(iface, "resource", tag),
+				component.WithImport(iface, "acquire", func(context.Context, []component.Value) ([]component.Value, error) {
+					file, err := os.CreateTemp(root, "resource-")
+					if err != nil {
+						return nil, err
+					}
+					files = append(files, file)
+					t.Cleanup(func() { _ = file.Close() })
+					return []component.Value{uint32(len(files))}, nil
+				}, nil, []component.TypeDesc{component.OwnDesc{ResourceType: tag}}),
+				component.WithImport(iface, "fail", func(context.Context, []component.Value) ([]component.Value, error) { return nil, setupErr }, nil, nil),
+				component.WithHostResourceDtor(tag, func(ctx context.Context, rep uint32) error {
+					if ctx.Err() != nil {
+						t.Errorf("resource cleanup context canceled: %v", ctx.Err())
+					}
+					dropped = append(dropped, rep)
+					err := files[rep-1].Close()
+					if cleanupFails && rep == 1 {
+						return errors.Join(err, cleanupErr)
+					}
+					return err
+				}),
+			}
+			entered := false
+			err := ref.With(func(service component.Service) error {
+				return service.WithInstance(context.Background(), initializationResourceFailure, func(*component.Instance) error { entered = true; return nil }, opts...)
+			})
+			if entered {
+				t.Fatal("callback ran after initialization failure")
+			}
+			if !errors.Is(err, setupErr) {
+				t.Fatalf("initialization error = %v, want setup error", err)
+			}
+			if len(files) != 2 {
+				t.Fatalf("acquired resources = %d, want 2", len(files))
+			}
+			if len(dropped) != 2 || dropped[0] == dropped[1] {
+				t.Errorf("destructed resources = %v, want both resources exactly once", dropped)
+			}
+			for _, file := range files {
+				if _, statErr := file.Stat(); statErr == nil || file.Fd() != ^uintptr(0) {
+					t.Errorf("resource %s after failed initialization = %v, want closed", filepath.Base(file.Name()), statErr)
+				}
+			}
+			if cleanupFails && !errors.Is(err, cleanupErr) {
+				t.Errorf("initialization error = %v, want joined cleanup error", err)
+			}
+		})
+	}
+}
diff --git a/internal/instance/graph.go b/internal/instance/graph.go
index 3785b14..eb7b866 100644
--- a/internal/instance/graph.go
+++ b/internal/instance/graph.go
@@ -2,6 +2,7 @@ package instance
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"strconv"
 	"strings"
@@ -315,7 +316,14 @@ func instantiateGraph(ctx context.Context, r wazy.Runtime, comp *binary.Componen
 		}
 	}
 	fail := func(err error) (*Instance, error) {
+		// Initializers can acquire host resources before graph construction
+		// fails. Drain those resources before closing their core modules, just
+		// as Instance.Close does, even when the caller canceled setup.
+		closeErr := resources.close(context.WithoutCancel(ctx))
 		closeAll()
+		if closeErr != nil {
+			return nil, errors.Join(err, closeErr)
+		}
 		return nil, err
 	}
 
diff --git a/testdata/initialization_resource_failure.wasm b/testdata/initialization_resource_failure.wasm
new file mode 100644
index 0000000..a7eb3c6
Binary files /dev/null and b/testdata/initialization_resource_failure.wasm differ
diff --git a/testdata/initialization_resource_failure.wat b/testdata/initialization_resource_failure.wat
new file mode 100644
index 0000000..28768ab
--- /dev/null
+++ b/testdata/initialization_resource_failure.wat
@@ -0,0 +1,24 @@
+;; The initializer acquires two ordinary host resources, then reports a
+;; setup error. The runtime must destroy both resources before returning.
+(component
+  (import "test:initialization/resources" (instance $host
+    (export "resource" (type (sub resource)))
+    (export "acquire" (func (result (own 0))))
+    (export "fail" (func))))
+  (alias export $host "acquire" (func $acquire))
+  (alias export $host "fail" (func $fail))
+  (core func $acquire-core (canon lower (func $acquire)))
+  (core func $fail-core (canon lower (func $fail)))
+  (core instance $imports
+    (export "acquire" (func $acquire-core))
+    (export "fail" (func $fail-core)))
+  (core module $initializer
+    (import "host" "acquire" (func $acquire (result i32)))
+    (import "host" "fail" (func $fail))
+    (func $initialize
+      call $acquire drop
+      call $acquire drop
+      call $fail)
+    (start $initialize))
+  (core instance $initialized
+    (instantiate $initializer (with "host" (instance $imports)))))