diff --git a/rego/rego.go b/rego/rego.go
index 73b34c28ed..0e17667a83 100644
--- a/rego/rego.go
+++ b/rego/rego.go
@@ -1736,22 +1736,20 @@ func (r *Rego) prepare(ctx context.Context, qType queryType, extras []extraStage
 }
 
 func (r *Rego) parseModules(ctx context.Context, txn storage.Transaction, m metrics.Metrics) error {
+	if len(r.modules) == 0 {
+		return nil
+	}
+
 	ids, err := r.store.ListPolicies(ctx, txn)
 	if err != nil {
 		return err
 	}
 
-	// if there are no raw modules, nor modules in the store, then there
-	// is nothing to do.
-	if len(r.modules) == 0 && len(ids) == 0 {
-		return nil
-	}
-
 	m.Timer(metrics.RegoModuleParse).Start()
 	defer m.Timer(metrics.RegoModuleParse).Stop()
 	var errs Errors
 
-	// Parse any modules in the are saved to the store, but only if
+	// Parse any modules that are saved to the store, but only if
 	// another compile step is going to occur (ie. we have parsed modules
 	// that need to be compiled).
 	for _, id := range ids {
diff --git a/sdk/opa_test.go b/sdk/opa_test.go
index 63e89bc76b..0551fc2abe 100644
--- a/sdk/opa_test.go
+++ b/sdk/opa_test.go
@@ -500,7 +500,7 @@ main = true
 		t.Fatal("expected true but got:", decision, ok)
 	}
 
-	if exp, act := 5, len(m.All()); exp != act {
+	if exp, act := 4, len(m.All()); exp != act {
 		t.Fatalf("expected %d metrics, got %d", exp, act)
 	}
 
@@ -576,7 +576,7 @@ main = true
 		t.Fatal("expected true but got:", decision, ok)
 	}
 
-	if exp, act := 26, len(m.All()); exp != act {
+	if exp, act := 25, len(m.All()); exp != act {
 		t.Fatalf("expected %d metrics, got %d", exp, act)
 	}
 
@@ -1024,7 +1024,7 @@ allow {
 		t.Fatal("expected &{[2 = data.junk.x] []} true but got:", decision, ok)
 	}
 
-	if exp, act := 6, len(m.All()); exp != act {
+	if exp, act := 5, len(m.All()); exp != act {
 		t.Fatalf("expected %d metrics, got %d", exp, act)
 	}
 
@@ -1111,7 +1111,7 @@ allow {
 		t.Fatal("expected &{[2 = data.junk.x] []} true but got:", decision, ok)
 	}
 
-	if exp, act := 33, len(m.All()); exp != act {
+	if exp, act := 32, len(m.All()); exp != act {
 		t.Fatalf("expected %d metrics, got %d", exp, act)
 	}
 
diff --git a/server/server_test.go b/server/server_test.go
index 3335b2601a..3f69f6a9ee 100644
--- a/server/server_test.go
+++ b/server/server_test.go
@@ -1038,7 +1038,6 @@ func TestCompileV1Observability(t *testing.T) {
 			"timer_rego_partial_eval_ns",
 			"timer_rego_query_compile_ns",
 			"timer_rego_query_parse_ns",
-			"timer_rego_module_parse_ns",
 			"timer_server_handler_ns",
 			"counter_disk_read_keys",
 			"timer_disk_read_ns",