diff --git a/importlib_metadata/__init__.py b/importlib_metadata/__init__.py
index ac0969d3..f01dfa5e 100644
--- a/importlib_metadata/__init__.py
+++ b/importlib_metadata/__init__.py
@@ -1030,7 +1030,6 @@ def __bool__(self):
         return bool(self.name)
 
 
-@install
 class MetadataPathFinder(NullFinder, DistributionFinder):
     """A degenerate finder for distribution packages on the file system.
 
@@ -1309,3 +1308,10 @@ def importable_name(name):
         return '.' not in name
 
     return filter(importable_name, opt_names)
+
+
+# Install the finder only after the module is fully initialized. Installing it
+# earlier would publish a finder whose globals are still incomplete, and
+# anything walking sys.meta_path in that window (another thread, a finalizer)
+# would fail to resolve PathDistribution (#525).
+install(MetadataPathFinder)
diff --git a/newsfragments/525.bugfix.rst b/newsfragments/525.bugfix.rst
new file mode 100644
index 00000000..b8a8c85f
--- /dev/null
+++ b/newsfragments/525.bugfix.rst
@@ -0,0 +1,6 @@
+``MetadataPathFinder`` is now installed on ``sys.meta_path`` only after the
+module is fully initialized. Previously it was installed partway through, so
+anything walking ``sys.meta_path`` during that window, such as another thread
+calling ``entry_points()``, would raise ``NameError: name 'PathDistribution'
+is not defined``. An import interrupted in that window left the half-built
+finder installed for the life of the process, failing every subsequent lookup.
diff --git a/tests/test_main.py b/tests/test_main.py
index b03911a3..9c5b418f 100644
--- a/tests/test_main.py
+++ b/tests/test_main.py
@@ -1,9 +1,13 @@
 import contextlib
 import importlib
+import importlib.util
 import io
+import os
 import pickle
 import re
+import sys
 import unittest
+from unittest import mock
 
 import pyfakefs.fake_filesystem_unittest as ffs
 from test.support import os_helper
@@ -14,6 +18,7 @@
     EntryPoint,
     MetadataNotFound,
     PackageNotFoundError,
+    _compat,
     _unique,
     diagnose,
     distributions,
@@ -108,6 +113,33 @@ def test_resolve_without_attr(self):
         assert ep.load() is importlib_metadata
 
 
+class FinderInstallTests(unittest.TestCase):
+    def test_installed_after_module_initialized(self):
+        """
+        Install the finder only after the module can satisfy it.
+
+        An installed finder resolves ``PathDistribution`` from the module
+        globals, so a finder installed before the module body completes is
+        one that anything walking ``sys.meta_path`` would trip over
+        (python/importlib_metadata#525).
+        """
+        snapshots = []
+
+        def capture(cls):
+            snapshots.append(set(sys._getframe(1).f_globals))
+            return cls
+
+        spec = importlib.util.find_spec('importlib_metadata')
+        with contextlib.ExitStack() as stack:
+            stack.enter_context(mock.patch.object(_compat, 'install', capture))
+            # Don't let the re-executed module leak a fork handler.
+            stack.enter_context(mock.patch.object(os, 'register_at_fork', create=True))
+            spec.loader.exec_module(importlib.util.module_from_spec(spec))
+
+        (globals_at_install,) = snapshots
+        assert 'PathDistribution' in globals_at_install
+
+
 class NameNormalizationTests(fixtures.OnSysPath, fixtures.SiteDir, unittest.TestCase):
     @staticmethod
     def make_pkg(name):