diff --git a/lib/functions/installs.bash b/lib/functions/installs.bash
index 036c1dab..1b440d27 100644
--- a/lib/functions/installs.bash
+++ b/lib/functions/installs.bash
@@ -234,15 +234,16 @@ install_tool_version() {
 
     local install_exit_code=$?
     if [ $install_exit_code -eq 0 ] && [ $download_exit_code -eq 0 ]; then
-      # Remove download directory if --keep-download flag or always_keep_download config setting are not set
+      # If the download directory should be kept, but isn't available, warn the user
       always_keep_download=$(get_asdf_config_value "always_keep_download")
-      if [ ! "$keep_download" = "true" ] && [ ! "$always_keep_download" = "yes" ]; then
-        if [ -d "$download_path" ]; then
-          rm -r "$download_path"
-        else
+      if [ "$keep_download" = "true" ] || [ "$always_keep_download" = "yes" ]; then
+        if [ ! -d "$download_path" ]; then
           printf '%s\n' "asdf: Warn: You have configured asdf to preserve downloaded files (with always_keep_download=yes or --keep-download). But" >&2
           printf '%s\n' "asdf: Warn: the current plugin ($plugin_name) does not support that. Downloaded files will not be preserved." >&2
         fi
+      # Otherwise, remove the download directory if it exists
+      elif [ -d "$download_path" ]; then
+        rm -r "$download_path"
       fi
 
       reshim_command "$plugin_name" "$full_version"
diff --git a/test/install_command.bats b/test/install_command.bats
index 9e70d544..bad99898 100644
--- a/test/install_command.bats
+++ b/test/install_command.bats
@@ -7,6 +7,7 @@ setup() {
   install_dummy_legacy_plugin
   install_dummy_plugin
   install_dummy_broken_plugin
+  install_dummy_plugin_no_download
 
   PROJECT_DIR="$HOME/project"
   mkdir -p "$PROJECT_DIR"
@@ -302,11 +303,24 @@ EOM
   [ "$output" = "Download failed!" ]
 }
 
-@test "install_command prints info message if plugin does not support preserving download data if configured" {
-  install_dummy_plugin_no_download
+@test "install_command prints info message if plugin does not support preserving download data if --keep-download flag is provided" {
+  run asdf install dummy-no-download 1.0.0 --keep-download
+  [ "$status" -eq 0 ]
 
+  [[ "$output" == *'asdf: Warn:'*'not be preserved'* ]]
+}
+
+@test "install_command prints info message if plugin does not support preserving download data if always_keep_download setting is true" {
+  echo 'always_keep_download = yes' >"$HOME/.asdfrc"
   run asdf install dummy-no-download 1.0.0
   [ "$status" -eq 0 ]
 
   [[ "$output" == *'asdf: Warn:'*'not be preserved'* ]]
 }
+
+@test "install_command does not print info message if --keep-download flag is not provided and always_keep_download setting is false" {
+  run asdf install dummy-no-download 1.0.0
+  [ "$status" -eq 0 ]
+
+  [[ "$output" != *'asdf: Warn:'*'not be preserved'* ]]
+}