The pilot and a passenger ejected from the RNAS Culdrose-based aircraft during the training exercise in Cornwall in March 2021 and were unharmed.
A report found there were “valuable lessons” which were “transferable across all emergency occurrences”.
It said “recommendations had been or will be actioned” to prevent further similar incidents.
It said the pilot diverted back towards the Helston air base when a warning light came on, caused by an incorrectly fitted plug and a valve failure.
However the engine failed on the way and the pair onboard ejected, with the aircraft crashing into nearby uninhabited woodland.

Eyewitnesses at the time described seeing the plane “flying low over houses” before hearing an “unbelievable bang”.
The report said the engine failure was caused by an “incorrectly fitted Magnetic Detection Plug (MCD)“.
Up until 2012, engine ground runs had been carried out following MCD maintenance.
The report noted those post-maintenance engine ground runs were reintroduced following the identification of the cause of the crash.

Air Marshal Steve Shell, director general of the DSA, also said in conclusion, there were “a number of aggravating factors including the route flown and the communication flow between the aircrew and Air Traffic Control that affected the final outcome”.
He said: “These should be considered in context whilst acknowledging the professionalism of the aircrew in what was an undoubtedly stressful and dynamic situation.”
He added that the “immediate actions of the post-crash management team and emergency personnel were commendable”.
Regarding the faults identified he said: “I am assured that the recommendations contained within this report have or will be actioned to reduce the likelihood of the future reoccurrence in the Hawk and other fleets.”
Source: bbc.com