diff --git a/src/cmd/go/internal/work/build.go b/src/cmd/go/internal/work/build.go
index 1f99ed6e07d..7f2617cf1ce 100644
--- a/src/cmd/go/internal/work/build.go
+++ b/src/cmd/go/internal/work/build.go
@@ -583,8 +583,31 @@ func runInstall(ctx context.Context, cmd *base.Command, args []string) {
 			return
 		}
 	}
+
 	BuildInit()
 	pkgs := load.PackagesAndErrors(ctx, args)
+	if cfg.ModulesEnabled && !modload.HasModRoot() {
+		haveErrors := false
+		allMissingErrors := true
+		for _, pkg := range pkgs {
+			if pkg.Error == nil {
+				continue
+			}
+			haveErrors = true
+			if missingErr := (*modload.ImportMissingError)(nil); !errors.As(pkg.Error, &missingErr) {
+				allMissingErrors = false
+				break
+			}
+		}
+		if haveErrors && allMissingErrors {
+			latestArgs := make([]string, len(args))
+			for i := range args {
+				latestArgs[i] = args[i] + "@latest"
+			}
+			hint := strings.Join(latestArgs, " ")
+			base.Fatalf("go install: version is required when current directory is not in a module\n\tTry 'go install %s' to install the latest version", hint)
+		}
+	}
 	load.CheckPackageErrors(pkgs)
 	if cfg.BuildI {
 		allGoroot := true
@@ -598,6 +621,7 @@ func runInstall(ctx context.Context, cmd *base.Command, args []string) {
 			fmt.Fprint(os.Stderr, "go install: -i flag is deprecated\n")
 		}
 	}
+
 	InstallPackages(ctx, args, pkgs)
 }
 
@@ -815,7 +839,7 @@ func installOutsideModule(ctx context.Context, args []string) {
 
 	// Load packages for all arguments. Ignore non-main packages.
 	// Print a warning if an argument contains "..." and matches no main packages.
-	// PackagesForBuild already prints warnings for patterns that don't match any
+	// PackagesAndErrors already prints warnings for patterns that don't match any
 	// packages, so be careful not to double print.
 	matchers := make([]func(string) bool, len(patterns))
 	for i, p := range patterns {
diff --git a/src/cmd/go/testdata/script/mod_outside.txt b/src/cmd/go/testdata/script/mod_outside.txt
index 28379ab40d8..8f01b5d2426 100644
--- a/src/cmd/go/testdata/script/mod_outside.txt
+++ b/src/cmd/go/testdata/script/mod_outside.txt
@@ -189,13 +189,16 @@ exists $GOPATH/bin/printversion$GOEXE
 
 # 'go install' should fail if a package argument must be resolved to a module.
 ! go install example.com/printversion
-stderr 'no required module provides package example.com/printversion: working directory is not part of a module'
+stderr '^go install: version is required when current directory is not in a module\n\tTry ''go install example.com/printversion@latest'' to install the latest version$'
 
 # 'go install' should fail if a source file imports a package that must be
 # resolved to a module.
 ! go install ./needmod/needmod.go
 stderr 'needmod[/\\]needmod.go:10:2: no required module provides package example.com/version: working directory is not part of a module'
 
+# 'go install' should succeed with a package in GOROOT.
+go install cmd/addr2line
+! stderr .
 
 # 'go run' with a verison should fail due to syntax.
 ! go run example.com/printversion@v1.0.0