diff --git a/salt/utils/cloud.py b/salt/utils/cloud.py
index 79389ea8a9c7..a6293181a446 100644
--- a/salt/utils/cloud.py
+++ b/salt/utils/cloud.py
@@ -80,9 +80,11 @@
     import importlib
     import importlib.metadata
 
-    # Verify WinRM 0.3.0 or greater
+    # Verify WinRM 0.3.0 or greater. The PyPI distribution is "pywinrm"
+    # (imported as `winrm`); looking up "winrm" raises PackageNotFoundError
+    # (an ImportError subclass), leaving HAS_WINRM always False. See #69976.
 
-    version = importlib.metadata.version("winrm")
+    version = importlib.metadata.version("pywinrm")
     if not salt.utils.versions.compare(version, ">=", WINRM_MIN_VER):
         HAS_WINRM = False
     else:
diff --git a/tests/pytests/unit/utils/test_cloud.py b/tests/pytests/unit/utils/test_cloud.py
index 4dfe796b2bb9..8c148846dbef 100644
--- a/tests/pytests/unit/utils/test_cloud.py
+++ b/tests/pytests/unit/utils/test_cloud.py
@@ -561,6 +561,23 @@ def test_winrm_pinnned_version():
             assert winrm_version >= "0.3.0"
 
 
+def test_has_winrm_detection_uses_pywinrm_distribution():
+    """
+    HAS_WINRM must be detected via the "pywinrm" distribution name (the PyPI
+    package), not "winrm". ``importlib.metadata.version("winrm")`` raises
+    ``PackageNotFoundError`` (an ``ImportError`` subclass), which the surrounding
+    ``except ImportError`` swallows, leaving ``HAS_WINRM`` always ``False`` and
+    breaking salt-cloud WinRM deployments. See #69976.
+    """
+    import importlib.metadata
+
+    try:
+        importlib.metadata.version("pywinrm")
+    except importlib.metadata.PackageNotFoundError:
+        pytest.skip("pywinrm is not installed in this env.")
+    assert cloud.HAS_WINRM is True
+
+
 def test_ssh_gateway_arguments_default_alive_args():
     server_alive_interval = 60
     server_alive_count_max = 3