diff --git a/changelogs/fragments/72966-allow-tilde-inside-galaxy-roles.yml b/changelogs/fragments/72966-allow-tilde-inside-galaxy-roles.yml
new file mode 100644
index 00000000000..29f8e65694d
--- /dev/null
+++ b/changelogs/fragments/72966-allow-tilde-inside-galaxy-roles.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - Allow `~` to be present in file names in galaxy roles (https://github.com/ansible/ansible/issues/72966)
diff --git a/lib/ansible/galaxy/role.py b/lib/ansible/galaxy/role.py
index 7de44dedf84..391df72545c 100644
--- a/lib/ansible/galaxy/role.py
+++ b/lib/ansible/galaxy/role.py
@@ -334,7 +334,11 @@ class GalaxyRole(object):
                                 n_parts = n_member_name.replace(n_archive_parent_dir, "", 1).split(os.sep)
                                 n_final_parts = []
                                 for n_part in n_parts:
-                                    if n_part != '..' and '~' not in n_part and '$' not in n_part:
+                                    # TODO if the condition triggers it produces a broken installation.
+                                    # It will create the parent directory as an empty file and will
+                                    # explode if the directory contains valid files.
+                                    # Leaving this as is since the whole module needs a rewrite.
+                                    if n_part != '..' and not n_part.startswith('~') and '$' not in n_part:
                                         n_final_parts.append(n_part)
                                 member.name = os.path.join(*n_final_parts)
                                 role_tar_file.extract(member, to_native(self.path))
diff --git a/test/integration/targets/ansible-galaxy-role/aliases b/test/integration/targets/ansible-galaxy-role/aliases
new file mode 100644
index 00000000000..62548acd35e
--- /dev/null
+++ b/test/integration/targets/ansible-galaxy-role/aliases
@@ -0,0 +1,2 @@
+shippable/posix/group4
+skip/python2.6  # build uses tarfile with features not available until 2.7
diff --git a/test/integration/targets/ansible-galaxy-role/meta/main.yml b/test/integration/targets/ansible-galaxy-role/meta/main.yml
new file mode 100644
index 00000000000..e6bc9ccb622
--- /dev/null
+++ b/test/integration/targets/ansible-galaxy-role/meta/main.yml
@@ -0,0 +1 @@
+dependencies: [setup_remote_tmp_dir]
diff --git a/test/integration/targets/ansible-galaxy-role/tasks/main.yml b/test/integration/targets/ansible-galaxy-role/tasks/main.yml
new file mode 100644
index 00000000000..e49e4e2958a
--- /dev/null
+++ b/test/integration/targets/ansible-galaxy-role/tasks/main.yml
@@ -0,0 +1,58 @@
+- name: Archive directories
+  file:
+    state: directory
+    path: "{{ remote_tmp_dir }}/role.d/{{item}}"
+  loop:
+  - meta
+  - tasks
+
+- name: Metadata file
+  copy:
+    content: "'galaxy_info': {}"
+    dest: "{{ remote_tmp_dir }}/role.d/meta/main.yml"
+
+- name: Valid files
+  copy:
+    content: ""
+    dest: "{{ remote_tmp_dir }}/role.d/tasks/{{item}}"
+  loop:
+  - "main.yml"
+  - "valid~file.yml"
+
+- name: Valid role archive
+  command: "tar cf {{ remote_tmp_dir }}/valid-role.tar {{ remote_tmp_dir }}/role.d"
+
+- name: Invalid file
+  copy:
+    content: ""
+    dest: "{{ remote_tmp_dir }}/role.d/tasks/~invalid.yml"
+
+- name: Valid requirements file
+  copy:
+    dest: valid-requirements.yml
+    content: "[{'src': '{{ remote_tmp_dir }}/valid-role.tar', 'name': 'valid-testrole'}]"
+
+- name: Invalid role archive
+  command: "tar cf {{ remote_tmp_dir }}/invalid-role.tar {{ remote_tmp_dir }}/role.d"
+
+- name: Invalid requirements file
+  copy:
+    dest: invalid-requirements.yml
+    content: "[{'src': '{{ remote_tmp_dir }}/invalid-role.tar', 'name': 'invalid-testrole'}]"
+
+- name: Install valid role
+  command: ansible-galaxy install -r valid-requirements.yml
+
+- name: Uninstall valid role
+  command: ansible-galaxy role remove valid-testrole
+
+- name: Install invalid role
+  command: ansible-galaxy install -r invalid-requirements.yml
+  ignore_errors: yes
+  register: invalid
+
+- assert:
+    that: "invalid.rc != 0"
+
+- name: Uninstall invalid role
+  command: ansible-galaxy role remove invalid-testrole