diff --git a/changelogs/fragments/fips-paramiko-import-error.yaml b/changelogs/fragments/fips-paramiko-import-error.yaml
new file mode 100644
index 00000000000..8aaea3f7376
--- /dev/null
+++ b/changelogs/fragments/fips-paramiko-import-error.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+  - paramiko - catch and handle exception to prevent stack trace when running in FIPS mode
diff --git a/lib/ansible/module_utils/compat/paramiko.py b/lib/ansible/module_utils/compat/paramiko.py
index 89080572f45..8e09b1b893a 100644
--- a/lib/ansible/module_utils/compat/paramiko.py
+++ b/lib/ansible/module_utils/compat/paramiko.py
@@ -10,5 +10,8 @@ PARAMIKO_IMPORT_ERR = None
 paramiko = None
 try:
     import paramiko
-except (ImportError, AttributeError) as err:  # paramiko and gssapi are incompatible and raise AttributeError not ImportError
+# paramiko and gssapi are incompatible and raise AttributeError not ImportError
+# When running in FIPS mode, cryptography raises InternalError
+# https://bugzilla.redhat.com/show_bug.cgi?id=1778939
+except Exception as err:
     PARAMIKO_IMPORT_ERR = err