diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1db3132f9eee..f910d5001ffb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -213,6 +213,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (x/authz) [\#10633](https://github.com/cosmos/cosmos-sdk/pull/10633) Fixed authorization not found error when executing message.
 * [#11222](https://github.com/cosmos/cosmos-sdk/pull/11222) reject query with block height in the future
 * [#11229](https://github.com/cosmos/cosmos-sdk/pull/11229) Handled the error message of `transaction encountered error` from tendermint.
+* (x/authz) [\#11252](https://github.com/cosmos/cosmos-sdk/pull/11252) Allow insufficient funds error for authz simulation
 
 ### State Machine Breaking
 
diff --git a/x/authz/simulation/operations.go b/x/authz/simulation/operations.go
index 81a00d5cdd98..3247a0735309 100644
--- a/x/authz/simulation/operations.go
+++ b/x/authz/simulation/operations.go
@@ -250,7 +250,7 @@ func SimulateMsgExec(ak authz.AccountKeeper, bk authz.BankKeeper, k keeper.Keepe
 
 		msg := []sdk.Msg{banktype.NewMsgSend(granterAddr, granteeAddr, coins)}
 		authorization, err := targetGrant.GetAuthorization()
-		if err != nil{
+		if err != nil {
 			return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, err.Error()), nil, err
 		}
 
@@ -259,17 +259,13 @@ func SimulateMsgExec(ak authz.AccountKeeper, bk authz.BankKeeper, k keeper.Keepe
 			return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, "not a send authorization"), nil, nil
 		}
 
-		if sendAuth.SpendLimit.IsAllLTE(coins) {
-			return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, "over spend limit"), nil, nil
-		}
-
-		res, err := sendAuth.Accept(ctx, msg[0])
+		_, err = sendAuth.Accept(ctx, msg[0])
 		if err != nil {
-			return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, err.Error()), nil, err
-		}
-
-		if !res.Accept {
-			return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, "expired or invalid grant"), nil, nil
+			if sdkerrors.ErrInsufficientFunds.Is(err) {
+				return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, err.Error()), nil, nil
+			} else {
+				return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, err.Error()), nil, err
+			}
 		}
 
 		msgExec := authz.NewMsgExec(granteeAddr, msg)
@@ -278,9 +274,9 @@ func SimulateMsgExec(ak authz.AccountKeeper, bk authz.BankKeeper, k keeper.Keepe
 		if err != nil {
 			return simtypes.NoOpMsg(authz.ModuleName, TypeMsgExec, "fee error"), nil, err
 		}
+
 		txCfg := simappparams.MakeTestEncodingConfig().TxConfig
 		granteeAcc := ak.GetAccount(ctx, granteeAddr)
-
 		tx, err := helpers.GenTx(
 			txCfg,
 			[]sdk.Msg{&msgExec},