diff --git a/CHANGELOG.md b/CHANGELOG.md
index 24ecffc1c..4ccec0bbd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,10 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 
 ## [Unreleased]
 
+### Fixed
+
+- Fixed the `AVERAGEIF` function returning a division-by-zero error when the calculated average was `0`. [#1733](https://github.com/handsontable/hyperformula/pull/1733)
+
 ## [3.4.0] - 2026-08-10
 
 ### Added
diff --git a/src/interpreter/plugin/ConditionalAggregationPlugin.ts b/src/interpreter/plugin/ConditionalAggregationPlugin.ts
index f2e74e83c..34e0fc7db 100644
--- a/src/interpreter/plugin/ConditionalAggregationPlugin.ts
+++ b/src/interpreter/plugin/ConditionalAggregationPlugin.ts
@@ -200,7 +200,7 @@ export class ConditionalAggregationPlugin extends FunctionPlugin implements Func
       if (averageResult instanceof CellError) {
         return averageResult
       } else {
-        return averageResult.averageValue() || new CellError(ErrorType.DIV_BY_ZERO)
+        return averageResult.averageValue() ?? new CellError(ErrorType.DIV_BY_ZERO)
       }
     }