diff --git a/changelogs/fragments/80590-dnf-skip_broken-unavailable-pkgs.yml b/changelogs/fragments/80590-dnf-skip_broken-unavailable-pkgs.yml
new file mode 100644
index 00000000000..f82c7aef72a
--- /dev/null
+++ b/changelogs/fragments/80590-dnf-skip_broken-unavailable-pkgs.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - dnf - properly skip unavailable packages when ``skip_broken`` is enabled (https://github.com/ansible/ansible/issues/80590)
diff --git a/lib/ansible/modules/dnf.py b/lib/ansible/modules/dnf.py
index d83c9a89971..e03661f78f3 100644
--- a/lib/ansible/modules/dnf.py
+++ b/lib/ansible/modules/dnf.py
@@ -855,6 +855,7 @@ class DnfModule(YumDnf):
         """Mark the package for install."""
         is_newer_version_installed = self._is_newer_version_installed(pkg_spec)
         is_installed = self._is_installed(pkg_spec)
+        msg = ''
         try:
             if is_newer_version_installed:
                 if self.allow_downgrade:
@@ -888,18 +889,16 @@ class DnfModule(YumDnf):
                     pass
             else:  # Case 7, The package is not installed, simply install it
                 self.base.install(pkg_spec, strict=self.base.conf.strict)
-
-            return {'failed': False, 'msg': '', 'failure': '', 'rc': 0}
-
         except dnf.exceptions.MarkingError as e:
-            return {
-                'failed': True,
-                'msg': "No package {0} available.".format(pkg_spec),
-                'failure': " ".join((pkg_spec, to_native(e))),
-                'rc': 1,
-                "results": []
-            }
-
+            msg = "No package {0} available.".format(pkg_spec)
+            if self.base.conf.strict:
+                return {
+                    'failed': True,
+                    'msg': msg,
+                    'failure': " ".join((pkg_spec, to_native(e))),
+                    'rc': 1,
+                    "results": []
+                }
         except dnf.exceptions.DepsolveError as e:
             return {
                 'failed': True,
@@ -908,7 +907,6 @@ class DnfModule(YumDnf):
                 'rc': 1,
                 "results": []
             }
-
         except dnf.exceptions.Error as e:
             if to_text("already installed") in to_text(e):
                 return {'failed': False, 'msg': '', 'failure': ''}
@@ -921,6 +919,8 @@ class DnfModule(YumDnf):
                     "results": []
                 }
 
+        return {'failed': False, 'msg': msg, 'failure': '', 'rc': 0}
+
     def _whatprovides(self, filepath):
         self.base.read_all_repos()
         available = self.base.sack.query().available()
diff --git a/test/integration/targets/dnf/tasks/skip_broken_and_nobest.yml b/test/integration/targets/dnf/tasks/skip_broken_and_nobest.yml
index f54c0a83d95..95c875a2f0d 100644
--- a/test/integration/targets/dnf/tasks/skip_broken_and_nobest.yml
+++ b/test/integration/targets/dnf/tasks/skip_broken_and_nobest.yml
@@ -304,7 +304,26 @@
         that:
           - res is not changed
 
-  # Case 7 is already tested quite extensively above in the earlier tests.
+    # Case 7 is already tested quite extensively above in the earlier tests.
+    # ######################################################################
+
+    - block:
+        - name: Test available package is installed while unavailable one is skipped due to skip_broken=true
+          dnf:
+            name:
+              - dinginessentail
+              - not-in-repo
+            skip_broken: true
+          register: res
+
+        - assert:
+            that:
+              - res is changed
+      # There is a change in dnf5 that splits skip_broken into two options:
+      # skip_broken and skip_unavailable.
+      # TODO: for this test to pass on dnf5 the skip_unavailable option would have to be
+      # added to the dnf5 module and used here instead of skip_broken.
+      when: not dnf5|default(false)
 
   always:
     - name: Remove test yum repo
@@ -316,4 +335,5 @@
       yum:
         name:
           - broken-*
+          - dinginessentail
         state: absent