diff --git a/modules/apps/27-interchain-accounts/controller/ibc_middleware.go b/modules/apps/27-interchain-accounts/controller/ibc_middleware.go
index f6f14d894bf..595930b231b 100644
--- a/modules/apps/27-interchain-accounts/controller/ibc_middleware.go
+++ b/modules/apps/27-interchain-accounts/controller/ibc_middleware.go
@@ -183,6 +183,7 @@ func (im IBCMiddleware) OnChanCloseConfirm(
 // OnRecvPacket implements the IBCMiddleware interface
 func (IBCMiddleware) OnRecvPacket(
 	ctx sdk.Context,
+	_ string,
 	packet channeltypes.Packet,
 	_ sdk.AccAddress,
 ) ibcexported.Acknowledgement {
@@ -195,6 +196,7 @@ func (IBCMiddleware) OnRecvPacket(
 // OnAcknowledgementPacket implements the IBCMiddleware interface
 func (im IBCMiddleware) OnAcknowledgementPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	acknowledgement []byte,
 	relayer sdk.AccAddress,
@@ -210,7 +212,7 @@ func (im IBCMiddleware) OnAcknowledgementPacket(
 
 	// call underlying app's OnAcknowledgementPacket callback.
 	if im.app != nil && im.keeper.IsMiddlewareEnabled(ctx, packet.GetSourcePort(), connectionID) {
-		return im.app.OnAcknowledgementPacket(ctx, packet, acknowledgement, relayer)
+		return im.app.OnAcknowledgementPacket(ctx, channelVersion, packet, acknowledgement, relayer)
 	}
 
 	return nil
@@ -219,6 +221,7 @@ func (im IBCMiddleware) OnAcknowledgementPacket(
 // OnTimeoutPacket implements the IBCMiddleware interface
 func (im IBCMiddleware) OnTimeoutPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	relayer sdk.AccAddress,
 ) error {
@@ -236,7 +239,7 @@ func (im IBCMiddleware) OnTimeoutPacket(
 	}
 
 	if im.app != nil && im.keeper.IsMiddlewareEnabled(ctx, packet.GetSourcePort(), connectionID) {
-		return im.app.OnTimeoutPacket(ctx, packet, relayer)
+		return im.app.OnTimeoutPacket(ctx, channelVersion, packet, relayer)
 	}
 
 	return nil
diff --git a/modules/apps/27-interchain-accounts/controller/ibc_middleware_test.go b/modules/apps/27-interchain-accounts/controller/ibc_middleware_test.go
index 0028b325fd8..420771e8f5c 100644
--- a/modules/apps/27-interchain-accounts/controller/ibc_middleware_test.go
+++ b/modules/apps/27-interchain-accounts/controller/ibc_middleware_test.go
@@ -577,7 +577,7 @@ func (suite *InterchainAccountsTestSuite) TestOnRecvPacket() {
 				)
 
 				ctx := suite.chainA.GetContext()
-				ack := cbs.OnRecvPacket(ctx, packet, nil)
+				ack := cbs.OnRecvPacket(ctx, path.EndpointA.GetChannel().Version, packet, nil)
 				suite.Require().Equal(tc.expPass, ack.Success())
 
 				expectedEvents := sdk.Events{
@@ -621,7 +621,7 @@ func (suite *InterchainAccountsTestSuite) TestOnAcknowledgementPacket() {
 		{
 			"ICA auth module callback fails", func() {
 				suite.chainA.GetSimApp().ICAAuthModule.IBCApp.OnAcknowledgementPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress,
 				) error {
 					return fmt.Errorf("mock ica auth fails")
 				}
@@ -637,7 +637,7 @@ func (suite *InterchainAccountsTestSuite) TestOnAcknowledgementPacket() {
 				suite.chainA.GetSimApp().ICAControllerKeeper.DeleteMiddlewareEnabled(suite.chainA.GetContext(), path.EndpointA.ChannelConfig.PortID, path.EndpointA.ConnectionID)
 
 				suite.chainA.GetSimApp().ICAAuthModule.IBCApp.OnAcknowledgementPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress,
 				) error {
 					return fmt.Errorf("error should be unreachable")
 				}
@@ -682,7 +682,7 @@ func (suite *InterchainAccountsTestSuite) TestOnAcknowledgementPacket() {
 					cbs = controller.NewIBCMiddleware(suite.chainA.GetSimApp().ICAControllerKeeper)
 				}
 
-				err = cbs.OnAcknowledgementPacket(suite.chainA.GetContext(), packet, []byte("ack"), nil)
+				err = cbs.OnAcknowledgementPacket(suite.chainA.GetContext(), path.EndpointA.GetChannel().Version, packet, []byte("ack"), nil)
 
 				if tc.expPass {
 					suite.Require().NoError(err)
@@ -718,7 +718,7 @@ func (suite *InterchainAccountsTestSuite) TestOnTimeoutPacket() {
 		{
 			"ICA auth module callback fails", func() {
 				suite.chainA.GetSimApp().ICAAuthModule.IBCApp.OnTimeoutPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress,
 				) error {
 					return fmt.Errorf("mock ica auth fails")
 				}
@@ -734,7 +734,7 @@ func (suite *InterchainAccountsTestSuite) TestOnTimeoutPacket() {
 				suite.chainA.GetSimApp().ICAControllerKeeper.DeleteMiddlewareEnabled(suite.chainA.GetContext(), path.EndpointA.ChannelConfig.PortID, path.EndpointA.ConnectionID)
 
 				suite.chainA.GetSimApp().ICAAuthModule.IBCApp.OnTimeoutPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress,
 				) error {
 					return fmt.Errorf("error should be unreachable")
 				}
@@ -779,7 +779,7 @@ func (suite *InterchainAccountsTestSuite) TestOnTimeoutPacket() {
 					cbs = controller.NewIBCMiddleware(suite.chainA.GetSimApp().ICAControllerKeeper)
 				}
 
-				err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), packet, nil)
+				err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), path.EndpointA.GetChannel().Version, packet, nil)
 
 				if tc.expPass {
 					suite.Require().NoError(err)
diff --git a/modules/apps/27-interchain-accounts/host/ibc_module.go b/modules/apps/27-interchain-accounts/host/ibc_module.go
index 7e9d2eaed23..18339a7f9f8 100644
--- a/modules/apps/27-interchain-accounts/host/ibc_module.go
+++ b/modules/apps/27-interchain-accounts/host/ibc_module.go
@@ -37,14 +37,14 @@ func NewIBCModule(k keeper.Keeper) IBCModule {
 
 // OnChanOpenInit implements the IBCModule interface
 func (IBCModule) OnChanOpenInit(
-	ctx sdk.Context,
-	order channeltypes.Order,
-	connectionHops []string,
-	portID string,
-	channelID string,
-	chanCap *capabilitytypes.Capability,
-	counterparty channeltypes.Counterparty,
-	version string,
+	_ sdk.Context,
+	_ channeltypes.Order,
+	_ []string,
+	_ string,
+	_ string,
+	_ *capabilitytypes.Capability,
+	_ channeltypes.Counterparty,
+	_ string,
 ) (string, error) {
 	return "", errorsmod.Wrap(icatypes.ErrInvalidChannelFlow, "channel handshake must be initiated by controller chain")
 }
@@ -69,11 +69,11 @@ func (im IBCModule) OnChanOpenTry(
 
 // OnChanOpenAck implements the IBCModule interface
 func (IBCModule) OnChanOpenAck(
-	ctx sdk.Context,
-	portID,
-	channelID string,
-	counterpartyChannelID string,
-	counterpartyVersion string,
+	_ sdk.Context,
+	_,
+	_ string,
+	_ string,
+	_ string,
 ) error {
 	return errorsmod.Wrap(icatypes.ErrInvalidChannelFlow, "channel handshake must be initiated by controller chain")
 }
@@ -93,9 +93,9 @@ func (im IBCModule) OnChanOpenConfirm(
 
 // OnChanCloseInit implements the IBCModule interface
 func (IBCModule) OnChanCloseInit(
-	ctx sdk.Context,
-	portID,
-	channelID string,
+	_ sdk.Context,
+	_ string,
+	_ string,
 ) error {
 	// Disallow user-initiated channel closing for interchain account channels
 	return errorsmod.Wrap(ibcerrors.ErrInvalidRequest, "user cannot close channel")
@@ -113,6 +113,7 @@ func (im IBCModule) OnChanCloseConfirm(
 // OnRecvPacket implements the IBCModule interface
 func (im IBCModule) OnRecvPacket(
 	ctx sdk.Context,
+	_ string,
 	packet channeltypes.Packet,
 	_ sdk.AccAddress,
 ) ibcexported.Acknowledgement {
@@ -140,25 +141,27 @@ func (im IBCModule) OnRecvPacket(
 
 // OnAcknowledgementPacket implements the IBCModule interface
 func (IBCModule) OnAcknowledgementPacket(
-	ctx sdk.Context,
-	packet channeltypes.Packet,
-	acknowledgement []byte,
-	relayer sdk.AccAddress,
+	_ sdk.Context,
+	_ string,
+	_ channeltypes.Packet,
+	_ []byte,
+	_ sdk.AccAddress,
 ) error {
 	return errorsmod.Wrap(icatypes.ErrInvalidChannelFlow, "cannot receive acknowledgement on a host channel end, a host chain does not send a packet over the channel")
 }
 
 // OnTimeoutPacket implements the IBCModule interface
 func (IBCModule) OnTimeoutPacket(
-	ctx sdk.Context,
-	packet channeltypes.Packet,
-	relayer sdk.AccAddress,
+	_ sdk.Context,
+	_ string,
+	_ channeltypes.Packet,
+	_ sdk.AccAddress,
 ) error {
 	return errorsmod.Wrap(icatypes.ErrInvalidChannelFlow, "cannot cause a packet timeout on a host channel end, a host chain does not send a packet over the channel")
 }
 
 // OnChanUpgradeInit implements the IBCModule interface
-func (IBCModule) OnChanUpgradeInit(ctx sdk.Context, portID, channelID string, proposedOrder channeltypes.Order, proposedConnectionHops []string, proposedVersion string) (string, error) {
+func (IBCModule) OnChanUpgradeInit(_ sdk.Context, _, _ string, _ channeltypes.Order, _ []string, _ string) (string, error) {
 	return "", errorsmod.Wrap(icatypes.ErrInvalidChannelFlow, "channel upgrade handshake must be initiated by controller chain")
 }
 
@@ -172,12 +175,12 @@ func (im IBCModule) OnChanUpgradeTry(ctx sdk.Context, portID, channelID string,
 }
 
 // OnChanUpgradeAck implements the IBCModule interface
-func (IBCModule) OnChanUpgradeAck(ctx sdk.Context, portID, channelID, counterpartyVersion string) error {
+func (IBCModule) OnChanUpgradeAck(_ sdk.Context, _, _, _ string) error {
 	return errorsmod.Wrap(icatypes.ErrInvalidChannelFlow, "channel upgrade handshake must be initiated by controller chain")
 }
 
 // OnChanUpgradeOpen implements the IBCModule interface
-func (IBCModule) OnChanUpgradeOpen(ctx sdk.Context, portID, channelID string, proposedOrder channeltypes.Order, proposedConnectionHops []string, proposedVersion string) {
+func (IBCModule) OnChanUpgradeOpen(_ sdk.Context, _, _ string, _ channeltypes.Order, _ []string, _ string) {
 }
 
 // UnmarshalPacketData attempts to unmarshal the provided packet data bytes
diff --git a/modules/apps/27-interchain-accounts/host/ibc_module_test.go b/modules/apps/27-interchain-accounts/host/ibc_module_test.go
index d13d71c3d52..cce0a8c76ee 100644
--- a/modules/apps/27-interchain-accounts/host/ibc_module_test.go
+++ b/modules/apps/27-interchain-accounts/host/ibc_module_test.go
@@ -424,7 +424,7 @@ func (suite *InterchainAccountsTestSuite) TestOnRecvPacket() {
 		{
 			"success with ICA auth module callback failure", func() {
 				suite.chainB.GetSimApp().ICAAuthModule.IBCApp.OnRecvPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress,
 				) exported.Acknowledgement {
 					return channeltypes.NewErrorAcknowledgement(fmt.Errorf("failed OnRecvPacket mock callback"))
 				}
@@ -503,7 +503,7 @@ func (suite *InterchainAccountsTestSuite) TestOnRecvPacket() {
 				suite.Require().True(ok)
 
 				ctx := suite.chainB.GetContext()
-				ack := cbs.OnRecvPacket(ctx, packet, nil)
+				ack := cbs.OnRecvPacket(ctx, path.EndpointB.GetChannel().Version, packet, nil)
 
 				expectedAttributes := []sdk.Attribute{
 					sdk.NewAttribute(sdk.AttributeKeyModule, icatypes.ModuleName),
@@ -587,7 +587,7 @@ func (suite *InterchainAccountsTestSuite) TestOnAcknowledgementPacket() {
 					0,
 				)
 
-				err = cbs.OnAcknowledgementPacket(suite.chainB.GetContext(), packet, []byte("ackBytes"), nil)
+				err = cbs.OnAcknowledgementPacket(suite.chainB.GetContext(), path.EndpointB.GetChannel().Version, packet, []byte("ackBytes"), nil)
 
 				if tc.expPass {
 					suite.Require().NoError(err)
@@ -642,7 +642,7 @@ func (suite *InterchainAccountsTestSuite) TestOnTimeoutPacket() {
 					0,
 				)
 
-				err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), packet, nil)
+				err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), path.EndpointA.GetChannel().Version, packet, nil)
 
 				if tc.expPass {
 					suite.Require().NoError(err)
diff --git a/modules/apps/29-fee/ibc_middleware.go b/modules/apps/29-fee/ibc_middleware.go
index 8869342d02e..be979487ddb 100644
--- a/modules/apps/29-fee/ibc_middleware.go
+++ b/modules/apps/29-fee/ibc_middleware.go
@@ -218,14 +218,16 @@ func (im IBCMiddleware) OnChanCloseConfirm(
 // If fees are not enabled, this callback will default to the ibc-core packet callback
 func (im IBCMiddleware) OnRecvPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	relayer sdk.AccAddress,
 ) exported.Acknowledgement {
 	if !im.keeper.IsFeeEnabled(ctx, packet.DestinationPort, packet.DestinationChannel) {
-		return im.app.OnRecvPacket(ctx, packet, relayer)
+		return im.app.OnRecvPacket(ctx, channelVersion, packet, relayer)
 	}
 
-	ack := im.app.OnRecvPacket(ctx, packet, relayer)
+	appVersion := unwrapAppVersion(channelVersion)
+	ack := im.app.OnRecvPacket(ctx, appVersion, packet, relayer)
 
 	// in case of async acknowledgement (ack == nil) store the relayer address for use later during async WriteAcknowledgement
 	if ack == nil {
@@ -243,14 +245,17 @@ func (im IBCMiddleware) OnRecvPacket(
 // If fees are not enabled, this callback will default to the ibc-core packet callback
 func (im IBCMiddleware) OnAcknowledgementPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	acknowledgement []byte,
 	relayer sdk.AccAddress,
 ) error {
 	if !im.keeper.IsFeeEnabled(ctx, packet.SourcePort, packet.SourceChannel) {
-		return im.app.OnAcknowledgementPacket(ctx, packet, acknowledgement, relayer)
+		return im.app.OnAcknowledgementPacket(ctx, channelVersion, packet, acknowledgement, relayer)
 	}
 
+	appVersion := unwrapAppVersion(channelVersion)
+
 	var ack types.IncentivizedAcknowledgement
 	if err := json.Unmarshal(acknowledgement, &ack); err != nil {
 		return errorsmod.Wrapf(ibcerrors.ErrInvalidType, "cannot unmarshal ICS-29 incentivized packet acknowledgement %v: %s", ack, err)
@@ -265,14 +270,14 @@ func (im IBCMiddleware) OnAcknowledgementPacket(
 		// for fee enabled channels
 		//
 		// Please see ADR 004 for more information.
-		return im.app.OnAcknowledgementPacket(ctx, packet, ack.AppAcknowledgement, relayer)
+		return im.app.OnAcknowledgementPacket(ctx, appVersion, packet, ack.AppAcknowledgement, relayer)
 	}
 
 	packetID := channeltypes.NewPacketID(packet.SourcePort, packet.SourceChannel, packet.Sequence)
 	feesInEscrow, found := im.keeper.GetFeesInEscrow(ctx, packetID)
 	if !found {
 		// call underlying callback
-		return im.app.OnAcknowledgementPacket(ctx, packet, ack.AppAcknowledgement, relayer)
+		return im.app.OnAcknowledgementPacket(ctx, appVersion, packet, ack.AppAcknowledgement, relayer)
 	}
 
 	payee, found := im.keeper.GetPayeeAddress(ctx, relayer.String(), packet.SourceChannel)
@@ -288,30 +293,37 @@ func (im IBCMiddleware) OnAcknowledgementPacket(
 	im.keeper.DistributePacketFeesOnAcknowledgement(ctx, ack.ForwardRelayerAddress, payeeAddr, feesInEscrow.PacketFees, packetID)
 
 	// call underlying callback
-	return im.app.OnAcknowledgementPacket(ctx, packet, ack.AppAcknowledgement, relayer)
+	return im.app.OnAcknowledgementPacket(ctx, appVersion, packet, ack.AppAcknowledgement, relayer)
 }
 
 // OnTimeoutPacket implements the IBCMiddleware interface
 // If fees are not enabled, this callback will default to the ibc-core packet callback
 func (im IBCMiddleware) OnTimeoutPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	relayer sdk.AccAddress,
 ) error {
+	if !im.keeper.IsFeeEnabled(ctx, packet.SourcePort, packet.SourceChannel) {
+		return im.app.OnTimeoutPacket(ctx, channelVersion, packet, relayer)
+	}
+
+	appVersion := unwrapAppVersion(channelVersion)
+
 	// if the fee keeper is locked then fee logic should be skipped
 	// this may occur in the presence of a severe bug which leads to invalid state
 	// the fee keeper will be unlocked after manual intervention
 	//
 	// Please see ADR 004 for more information.
-	if !im.keeper.IsFeeEnabled(ctx, packet.SourcePort, packet.SourceChannel) || im.keeper.IsLocked(ctx) {
-		return im.app.OnTimeoutPacket(ctx, packet, relayer)
+	if im.keeper.IsLocked(ctx) {
+		return im.app.OnTimeoutPacket(ctx, appVersion, packet, relayer)
 	}
 
 	packetID := channeltypes.NewPacketID(packet.SourcePort, packet.SourceChannel, packet.Sequence)
 	feesInEscrow, found := im.keeper.GetFeesInEscrow(ctx, packetID)
 	if !found {
 		// call underlying callback
-		return im.app.OnTimeoutPacket(ctx, packet, relayer)
+		return im.app.OnTimeoutPacket(ctx, appVersion, packet, relayer)
 	}
 
 	payee, found := im.keeper.GetPayeeAddress(ctx, relayer.String(), packet.SourceChannel)
@@ -327,7 +339,7 @@ func (im IBCMiddleware) OnTimeoutPacket(
 	im.keeper.DistributePacketFeesOnTimeout(ctx, payeeAddr, feesInEscrow.PacketFees, packetID)
 
 	// call underlying callback
-	return im.app.OnTimeoutPacket(ctx, packet, relayer)
+	return im.app.OnTimeoutPacket(ctx, appVersion, packet, relayer)
 }
 
 // OnChanUpgradeInit implements the IBCModule interface
@@ -482,3 +494,13 @@ func (im IBCMiddleware) UnmarshalPacketData(ctx sdk.Context, portID, channelID s
 
 	return unmarshaler.UnmarshalPacketData(ctx, portID, channelID, bz)
 }
+
+func unwrapAppVersion(channelVersion string) string {
+	metadata, err := types.MetadataFromVersion(channelVersion)
+	if err != nil {
+		// This should not happen, as it would mean that the channel is broken. Only a severe bug would cause this.
+		panic(errorsmod.Wrap(err, "failed to unwrap app version from channel version"))
+	}
+
+	return metadata.AppVersion
+}
diff --git a/modules/apps/29-fee/ibc_middleware_test.go b/modules/apps/29-fee/ibc_middleware_test.go
index f73d66235d6..7f1948482ba 100644
--- a/modules/apps/29-fee/ibc_middleware_test.go
+++ b/modules/apps/29-fee/ibc_middleware_test.go
@@ -514,6 +514,7 @@ func (suite *FeeTestSuite) TestOnRecvPacket() {
 				// setup mock callback
 				suite.chainB.GetSimApp().FeeMockModule.IBCApp.OnRecvPacket = func(
 					ctx sdk.Context,
+					channelVersion string,
 					packet channeltypes.Packet,
 					relayer sdk.AccAddress,
 				) exported.Acknowledgement {
@@ -566,7 +567,7 @@ func (suite *FeeTestSuite) TestOnRecvPacket() {
 			// malleate test case
 			tc.malleate()
 
-			result := cbs.OnRecvPacket(suite.chainB.GetContext(), packet, suite.chainA.SenderAccount.GetAddress())
+			result := cbs.OnRecvPacket(suite.chainB.GetContext(), suite.path.EndpointB.GetChannel().Version, packet, suite.chainA.SenderAccount.GetAddress())
 
 			switch {
 			case tc.name == "success":
@@ -799,7 +800,7 @@ func (suite *FeeTestSuite) TestOnAcknowledgementPacket() {
 		{
 			"application callback fails",
 			func() {
-				suite.chainA.GetSimApp().FeeMockModule.IBCApp.OnAcknowledgementPacket = func(_ sdk.Context, _ channeltypes.Packet, _ []byte, _ sdk.AccAddress) error {
+				suite.chainA.GetSimApp().FeeMockModule.IBCApp.OnAcknowledgementPacket = func(_ sdk.Context, _ string, _ channeltypes.Packet, _ []byte, _ sdk.AccAddress) error {
 					return fmt.Errorf("mock fee app callback fails")
 				}
 			},
@@ -840,7 +841,7 @@ func (suite *FeeTestSuite) TestOnAcknowledgementPacket() {
 			cbs, ok := suite.chainA.App.GetIBCKeeper().PortKeeper.Route(module)
 			suite.Require().True(ok)
 
-			err = cbs.OnAcknowledgementPacket(suite.chainA.GetContext(), packet, ack, relayerAddr)
+			err = cbs.OnAcknowledgementPacket(suite.chainA.GetContext(), suite.path.EndpointA.GetChannel().Version, packet, ack, relayerAddr)
 
 			if tc.expPass {
 				suite.Require().NoError(err)
@@ -1013,7 +1014,7 @@ func (suite *FeeTestSuite) TestOnTimeoutPacket() {
 		{
 			"application callback fails",
 			func() {
-				suite.chainA.GetSimApp().FeeMockModule.IBCApp.OnTimeoutPacket = func(_ sdk.Context, _ channeltypes.Packet, _ sdk.AccAddress) error {
+				suite.chainA.GetSimApp().FeeMockModule.IBCApp.OnTimeoutPacket = func(_ sdk.Context, _ string, _ channeltypes.Packet, _ sdk.AccAddress) error {
 					return fmt.Errorf("mock fee app callback fails")
 				}
 			},
@@ -1051,7 +1052,7 @@ func (suite *FeeTestSuite) TestOnTimeoutPacket() {
 			cbs, ok := suite.chainA.App.GetIBCKeeper().PortKeeper.Route(module)
 			suite.Require().True(ok)
 
-			err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), packet, relayerAddr)
+			err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), suite.path.EndpointA.GetChannel().Version, packet, relayerAddr)
 
 			if tc.expPass {
 				suite.Require().NoError(err)
diff --git a/modules/apps/callbacks/ibc_middleware.go b/modules/apps/callbacks/ibc_middleware.go
index ef6dbcbbfd0..dfe21cc8547 100644
--- a/modules/apps/callbacks/ibc_middleware.go
+++ b/modules/apps/callbacks/ibc_middleware.go
@@ -130,12 +130,13 @@ func (im IBCMiddleware) SendPacket(
 // reverted via a panic.
 func (im IBCMiddleware) OnAcknowledgementPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	acknowledgement []byte,
 	relayer sdk.AccAddress,
 ) error {
 	// we first call the underlying app to handle the acknowledgement
-	err := im.app.OnAcknowledgementPacket(ctx, packet, acknowledgement, relayer)
+	err := im.app.OnAcknowledgementPacket(ctx, channelVersion, packet, acknowledgement, relayer)
 	if err != nil {
 		return err
 	}
@@ -168,8 +169,8 @@ func (im IBCMiddleware) OnAcknowledgementPacket(
 // It defers to the underlying application and then calls the contract callback.
 // If the contract callback runs out of gas and may be retried with a higher gas limit then the state changes are
 // reverted via a panic.
-func (im IBCMiddleware) OnTimeoutPacket(ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress) error {
-	err := im.app.OnTimeoutPacket(ctx, packet, relayer)
+func (im IBCMiddleware) OnTimeoutPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress) error {
+	err := im.app.OnTimeoutPacket(ctx, channelVersion, packet, relayer)
 	if err != nil {
 		return err
 	}
@@ -201,8 +202,8 @@ func (im IBCMiddleware) OnTimeoutPacket(ctx sdk.Context, packet channeltypes.Pac
 // It defers to the underlying application and then calls the contract callback.
 // If the contract callback runs out of gas and may be retried with a higher gas limit then the state changes are
 // reverted via a panic.
-func (im IBCMiddleware) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress) ibcexported.Acknowledgement {
-	ack := im.app.OnRecvPacket(ctx, packet, relayer)
+func (im IBCMiddleware) OnRecvPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress) ibcexported.Acknowledgement {
+	ack := im.app.OnRecvPacket(ctx, channelVersion, packet, relayer)
 	// if ack is nil (asynchronous acknowledgements), then the callback will be handled in WriteAcknowledgement
 	// if ack is not successful, all state changes are reverted. If a packet cannot be received, then there is
 	// no need to execute a callback on the receiving chain.
diff --git a/modules/apps/callbacks/ibc_middleware_test.go b/modules/apps/callbacks/ibc_middleware_test.go
index 25bc6db3785..e87c2317fd0 100644
--- a/modules/apps/callbacks/ibc_middleware_test.go
+++ b/modules/apps/callbacks/ibc_middleware_test.go
@@ -355,7 +355,7 @@ func (s *CallbacksTestSuite) TestOnAcknowledgementPacket() {
 			s.Require().True(ok)
 
 			onAcknowledgementPacket := func() error {
-				return transferStack.OnAcknowledgementPacket(ctx, packet, ack, s.chainA.SenderAccount.GetAddress())
+				return transferStack.OnAcknowledgementPacket(ctx, s.path.EndpointA.GetChannel().Version, packet, ack, s.chainA.SenderAccount.GetAddress())
 			}
 
 			switch tc.expError {
@@ -519,7 +519,7 @@ func (s *CallbacksTestSuite) TestOnTimeoutPacket() {
 			s.Require().True(ok)
 
 			onTimeoutPacket := func() error {
-				return transferStack.OnTimeoutPacket(ctx, packet, s.chainA.SenderAccount.GetAddress())
+				return transferStack.OnTimeoutPacket(ctx, s.path.EndpointA.GetChannel().Version, packet, s.chainA.SenderAccount.GetAddress())
 			}
 
 			switch expValue := tc.expValue.(type) {
@@ -687,7 +687,7 @@ func (s *CallbacksTestSuite) TestOnRecvPacket() {
 			s.Require().True(ok)
 
 			onRecvPacket := func() ibcexported.Acknowledgement {
-				return transferStack.OnRecvPacket(ctx, packet, s.chainB.SenderAccount.GetAddress())
+				return transferStack.OnRecvPacket(ctx, s.path.EndpointA.GetChannel().Version, packet, s.chainB.SenderAccount.GetAddress())
 			}
 
 			switch tc.expAck {
@@ -1132,7 +1132,7 @@ func (s *CallbacksTestSuite) TestOnRecvPacketAsyncAck() {
 		0,
 	)
 
-	ack := mockFeeCallbackStack.OnRecvPacket(s.chainA.GetContext(), packet, s.chainA.SenderAccount.GetAddress())
+	ack := mockFeeCallbackStack.OnRecvPacket(s.chainA.GetContext(), ibcmock.MockFeeVersion, packet, s.chainA.SenderAccount.GetAddress())
 	s.Require().Nil(ack)
 	s.AssertHasExecutedExpectedCallback("none", true)
 }
diff --git a/modules/apps/transfer/ibc_module.go b/modules/apps/transfer/ibc_module.go
index d588128943c..4af345c339a 100644
--- a/modules/apps/transfer/ibc_module.go
+++ b/modules/apps/transfer/ibc_module.go
@@ -180,6 +180,7 @@ func (IBCModule) OnChanCloseConfirm(
 // A nil acknowledgement may be returned when using the packet forwarding feature. This signals to core IBC that the acknowledgement will be written asynchronously.
 func (im IBCModule) OnRecvPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	relayer sdk.AccAddress,
 ) ibcexported.Acknowledgement {
@@ -196,7 +197,7 @@ func (im IBCModule) OnRecvPacket(
 		events.EmitOnRecvPacketEvent(ctx, data, ack, ackErr)
 	}()
 
-	data, ackErr = im.getICS20PacketData(ctx, packet.GetData(), packet.GetDestPort(), packet.GetDestChannel())
+	data, ackErr = types.UnmarshalPacketData(packet.GetData(), channelVersion)
 	if ackErr != nil {
 		ack = channeltypes.NewErrorAcknowledgement(ackErr)
 		im.keeper.Logger(ctx).Error(fmt.Sprintf("%s sequence %d", ackErr.Error(), packet.Sequence))
@@ -223,6 +224,7 @@ func (im IBCModule) OnRecvPacket(
 // OnAcknowledgementPacket implements the IBCModule interface
 func (im IBCModule) OnAcknowledgementPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	acknowledgement []byte,
 	relayer sdk.AccAddress,
@@ -232,7 +234,7 @@ func (im IBCModule) OnAcknowledgementPacket(
 		return errorsmod.Wrapf(ibcerrors.ErrUnknownRequest, "cannot unmarshal ICS-20 transfer packet acknowledgement: %v", err)
 	}
 
-	data, err := im.getICS20PacketData(ctx, packet.GetData(), packet.GetSourcePort(), packet.GetSourceChannel())
+	data, err := types.UnmarshalPacketData(packet.GetData(), channelVersion)
 	if err != nil {
 		return err
 	}
@@ -249,10 +251,11 @@ func (im IBCModule) OnAcknowledgementPacket(
 // OnTimeoutPacket implements the IBCModule interface
 func (im IBCModule) OnTimeoutPacket(
 	ctx sdk.Context,
+	channelVersion string,
 	packet channeltypes.Packet,
 	relayer sdk.AccAddress,
 ) error {
-	data, err := im.getICS20PacketData(ctx, packet.GetData(), packet.GetSourcePort(), packet.GetSourceChannel())
+	data, err := types.UnmarshalPacketData(packet.GetData(), channelVersion)
 	if err != nil {
 		return err
 	}
@@ -310,16 +313,10 @@ func (IBCModule) OnChanUpgradeOpen(ctx sdk.Context, portID, channelID string, pr
 // into a FungibleTokenPacketData. This function implements the optional
 // PacketDataUnmarshaler interface required for ADR 008 support.
 func (im IBCModule) UnmarshalPacketData(ctx sdk.Context, portID, channelID string, bz []byte) (interface{}, error) {
-	return im.getICS20PacketData(ctx, bz, portID, channelID)
-}
-
-// getICS20PacketData determines the current version of ICS20 and unmarshals the packet data into either a FungibleTokenPacketData
-// or a FungibleTokenPacketDataV2 depending on the application version.
-func (im IBCModule) getICS20PacketData(ctx sdk.Context, packetData []byte, portID, channelID string) (types.FungibleTokenPacketDataV2, error) {
 	ics20Version, found := im.keeper.GetICS4Wrapper().GetAppVersion(ctx, portID, channelID)
 	if !found {
 		return types.FungibleTokenPacketDataV2{}, errorsmod.Wrapf(ibcerrors.ErrNotFound, "app version not found for port %s and channel %s", portID, channelID)
 	}
 
-	return types.UnmarshalPacketData(packetData, ics20Version)
+	return types.UnmarshalPacketData(bz, ics20Version)
 }
diff --git a/modules/apps/transfer/ibc_module_test.go b/modules/apps/transfer/ibc_module_test.go
index 2beb583cc5a..4dd4a505fd5 100644
--- a/modules/apps/transfer/ibc_module_test.go
+++ b/modules/apps/transfer/ibc_module_test.go
@@ -403,7 +403,7 @@ func (suite *TransferTestSuite) TestOnRecvPacket() {
 
 			tc.malleate() // change fields in packet
 
-			ack := cbs.OnRecvPacket(ctx, packet, suite.chainB.SenderAccount.GetAddress())
+			ack := cbs.OnRecvPacket(ctx, path.EndpointB.GetChannel().Version, packet, suite.chainB.SenderAccount.GetAddress())
 
 			suite.Require().Equal(tc.expAck, ack)
 
@@ -448,7 +448,7 @@ func (suite *TransferTestSuite) TestOnTimeoutPacket() {
 			func() {
 				packet.SourceChannel = "channel-100"
 			},
-			ibcerrors.ErrNotFound,
+			errors.New("unable to unescrow tokens"),
 		},
 		{
 			"invalid packet data",
@@ -468,7 +468,7 @@ func (suite *TransferTestSuite) TestOnTimeoutPacket() {
 				cbs, ok := suite.chainA.App.GetIBCKeeper().PortKeeper.Route(module)
 				suite.Require().True(ok)
 
-				suite.Require().NoError(cbs.OnTimeoutPacket(suite.chainA.GetContext(), packet, suite.chainA.SenderAccount.GetAddress()))
+				suite.Require().NoError(cbs.OnTimeoutPacket(suite.chainA.GetContext(), path.EndpointA.GetChannel().Version, packet, suite.chainA.SenderAccount.GetAddress()))
 			},
 			errors.New("unable to unescrow tokens"),
 		},
@@ -508,7 +508,7 @@ func (suite *TransferTestSuite) TestOnTimeoutPacket() {
 
 			tc.malleate() // change fields in packet
 
-			err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), packet, suite.chainA.SenderAccount.GetAddress())
+			err = cbs.OnTimeoutPacket(suite.chainA.GetContext(), path.EndpointA.GetChannel().Version, packet, suite.chainA.SenderAccount.GetAddress())
 
 			expPass := tc.expError == nil
 			if expPass {
diff --git a/modules/apps/transfer/keeper/relay_forwarding_test.go b/modules/apps/transfer/keeper/relay_forwarding_test.go
index a5717e09944..23799233623 100644
--- a/modules/apps/transfer/keeper/relay_forwarding_test.go
+++ b/modules/apps/transfer/keeper/relay_forwarding_test.go
@@ -983,7 +983,7 @@ func (suite *ForwardingTestSuite) TestOnTimeoutPacketForwarding() {
 	suite.Require().True(ok)
 
 	// Trigger OnTimeoutPacket for chainB
-	err = cbs.OnTimeoutPacket(suite.chainB.GetContext(), packet, nil)
+	err = cbs.OnTimeoutPacket(suite.chainB.GetContext(), pathBtoC.EndpointA.GetChannel().Version, packet, nil)
 	suite.Require().NoError(err)
 
 	// Ensure that chainB has an ack.
diff --git a/modules/core/04-channel/keeper/packet.go b/modules/core/04-channel/keeper/packet.go
index f56b578096f..04f8768a712 100644
--- a/modules/core/04-channel/keeper/packet.go
+++ b/modules/core/04-channel/keeper/packet.go
@@ -111,14 +111,14 @@ func (k *Keeper) RecvPacket(
 	packet types.Packet,
 	proof []byte,
 	proofHeight exported.Height,
-) error {
+) (string, error) {
 	channel, found := k.GetChannel(ctx, packet.GetDestPort(), packet.GetDestChannel())
 	if !found {
-		return errorsmod.Wrap(types.ErrChannelNotFound, packet.GetDestChannel())
+		return "", errorsmod.Wrap(types.ErrChannelNotFound, packet.GetDestChannel())
 	}
 
 	if !slices.Contains([]types.State{types.OPEN, types.FLUSHING, types.FLUSHCOMPLETE}, channel.State) {
-		return errorsmod.Wrapf(types.ErrInvalidChannelState, "expected channel state to be one of [%s, %s, %s], but got %s", types.OPEN, types.FLUSHING, types.FLUSHCOMPLETE, channel.State)
+		return "", errorsmod.Wrapf(types.ErrInvalidChannelState, "expected channel state to be one of [%s, %s, %s], but got %s", types.OPEN, types.FLUSHING, types.FLUSHCOMPLETE, channel.State)
 	}
 
 	// If counterpartyUpgrade is stored we need to ensure that the
@@ -130,14 +130,14 @@ func (k *Keeper) RecvPacket(
 	if found {
 		counterpartyNextSequenceSend := counterpartyUpgrade.NextSequenceSend
 		if packet.GetSequence() >= counterpartyNextSequenceSend {
-			return errorsmod.Wrapf(types.ErrInvalidPacket, "cannot flush packet at sequence greater than or equal to counterparty next sequence send (%d) ≥ (%d).", packet.GetSequence(), counterpartyNextSequenceSend)
+			return "", errorsmod.Wrapf(types.ErrInvalidPacket, "cannot flush packet at sequence greater than or equal to counterparty next sequence send (%d) ≥ (%d).", packet.GetSequence(), counterpartyNextSequenceSend)
 		}
 	}
 
 	// Authenticate capability to ensure caller has authority to receive packet on this channel
 	capName := host.ChannelCapabilityPath(packet.GetDestPort(), packet.GetDestChannel())
 	if !k.scopedKeeper.AuthenticateCapability(ctx, chanCap, capName) {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidChannelCapability,
 			"channel capability failed authentication for capability name %s", capName,
 		)
@@ -145,14 +145,14 @@ func (k *Keeper) RecvPacket(
 
 	// packet must come from the channel's counterparty
 	if packet.GetSourcePort() != channel.Counterparty.PortId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet source port doesn't match the counterparty's port (%s ≠ %s)", packet.GetSourcePort(), channel.Counterparty.PortId,
 		)
 	}
 
 	if packet.GetSourceChannel() != channel.Counterparty.ChannelId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet source channel doesn't match the counterparty's channel (%s ≠ %s)", packet.GetSourceChannel(), channel.Counterparty.ChannelId,
 		)
@@ -163,18 +163,18 @@ func (k *Keeper) RecvPacket(
 	// connection and channel must both be open
 	connectionEnd, found := k.connectionKeeper.GetConnection(ctx, channel.ConnectionHops[0])
 	if !found {
-		return errorsmod.Wrap(connectiontypes.ErrConnectionNotFound, channel.ConnectionHops[0])
+		return "", errorsmod.Wrap(connectiontypes.ErrConnectionNotFound, channel.ConnectionHops[0])
 	}
 
 	if connectionEnd.State != connectiontypes.OPEN {
-		return errorsmod.Wrapf(connectiontypes.ErrInvalidConnectionState, "connection state is not OPEN (got %s)", connectionEnd.State)
+		return "", errorsmod.Wrapf(connectiontypes.ErrInvalidConnectionState, "connection state is not OPEN (got %s)", connectionEnd.State)
 	}
 
 	// check if packet timed out by comparing it with the latest height of the chain
 	selfHeight, selfTimestamp := clienttypes.GetSelfHeight(ctx), uint64(ctx.BlockTime().UnixNano())
 	timeout := types.NewTimeout(packet.GetTimeoutHeight().(clienttypes.Height), packet.GetTimeoutTimestamp())
 	if timeout.Elapsed(selfHeight, selfTimestamp) {
-		return errorsmod.Wrap(timeout.ErrTimeoutElapsed(selfHeight, selfTimestamp), "packet timeout elapsed")
+		return "", errorsmod.Wrap(timeout.ErrTimeoutElapsed(selfHeight, selfTimestamp), "packet timeout elapsed")
 	}
 
 	commitment := types.CommitPacket(k.cdc, packet)
@@ -185,11 +185,11 @@ func (k *Keeper) RecvPacket(
 		packet.GetSourcePort(), packet.GetSourceChannel(), packet.GetSequence(),
 		commitment,
 	); err != nil {
-		return errorsmod.Wrap(err, "couldn't verify counterparty packet commitment")
+		return "", errorsmod.Wrap(err, "couldn't verify counterparty packet commitment")
 	}
 
 	if err := k.applyReplayProtection(ctx, packet, channel); err != nil {
-		return err
+		return "", err
 	}
 
 	// log that a packet has been received & executed
@@ -205,7 +205,7 @@ func (k *Keeper) RecvPacket(
 	// emit an event that the relayer can query for
 	emitRecvPacketEvent(ctx, packet, channel)
 
-	return nil
+	return channel.Version, nil
 }
 
 // applyReplayProtection ensures a packet has not already been received
@@ -374,23 +374,23 @@ func (k *Keeper) AcknowledgePacket(
 	acknowledgement []byte,
 	proof []byte,
 	proofHeight exported.Height,
-) error {
+) (string, error) {
 	channel, found := k.GetChannel(ctx, packet.GetSourcePort(), packet.GetSourceChannel())
 	if !found {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrChannelNotFound,
 			"port ID (%s) channel ID (%s)", packet.GetSourcePort(), packet.GetSourceChannel(),
 		)
 	}
 
 	if !slices.Contains([]types.State{types.OPEN, types.FLUSHING}, channel.State) {
-		return errorsmod.Wrapf(types.ErrInvalidChannelState, "packets cannot be acknowledged on channel with state (%s)", channel.State)
+		return "", errorsmod.Wrapf(types.ErrInvalidChannelState, "packets cannot be acknowledged on channel with state (%s)", channel.State)
 	}
 
 	// Authenticate capability to ensure caller has authority to receive packet on this channel
 	capName := host.ChannelCapabilityPath(packet.GetSourcePort(), packet.GetSourceChannel())
 	if !k.scopedKeeper.AuthenticateCapability(ctx, chanCap, capName) {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidChannelCapability,
 			"channel capability failed authentication for capability name %s", capName,
 		)
@@ -398,14 +398,14 @@ func (k *Keeper) AcknowledgePacket(
 
 	// packet must have been sent to the channel's counterparty
 	if packet.GetDestPort() != channel.Counterparty.PortId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet destination port doesn't match the counterparty's port (%s ≠ %s)", packet.GetDestPort(), channel.Counterparty.PortId,
 		)
 	}
 
 	if packet.GetDestChannel() != channel.Counterparty.ChannelId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet destination channel doesn't match the counterparty's channel (%s ≠ %s)", packet.GetDestChannel(), channel.Counterparty.ChannelId,
 		)
@@ -413,11 +413,11 @@ func (k *Keeper) AcknowledgePacket(
 
 	connectionEnd, found := k.connectionKeeper.GetConnection(ctx, channel.ConnectionHops[0])
 	if !found {
-		return errorsmod.Wrap(connectiontypes.ErrConnectionNotFound, channel.ConnectionHops[0])
+		return "", errorsmod.Wrap(connectiontypes.ErrConnectionNotFound, channel.ConnectionHops[0])
 	}
 
 	if connectionEnd.State != connectiontypes.OPEN {
-		return errorsmod.Wrapf(connectiontypes.ErrInvalidConnectionState, "connection state is not OPEN (got %s)", connectionEnd.State)
+		return "", errorsmod.Wrapf(connectiontypes.ErrInvalidConnectionState, "connection state is not OPEN (got %s)", connectionEnd.State)
 	}
 
 	commitment := k.GetPacketCommitment(ctx, packet.GetSourcePort(), packet.GetSourceChannel(), packet.GetSequence())
@@ -428,35 +428,35 @@ func (k *Keeper) AcknowledgePacket(
 		// or there is a misconfigured relayer attempting to prove an acknowledgement
 		// for a packet never sent. Core IBC will treat this error as a no-op in order to
 		// prevent an entire relay transaction from failing and consuming unnecessary fees.
-		return types.ErrNoOpMsg
+		return "", types.ErrNoOpMsg
 	}
 
 	packetCommitment := types.CommitPacket(k.cdc, packet)
 
 	// verify we sent the packet and haven't cleared it out yet
 	if !bytes.Equal(commitment, packetCommitment) {
-		return errorsmod.Wrapf(types.ErrInvalidPacket, "commitment bytes are not equal: got (%v), expected (%v)", packetCommitment, commitment)
+		return "", errorsmod.Wrapf(types.ErrInvalidPacket, "commitment bytes are not equal: got (%v), expected (%v)", packetCommitment, commitment)
 	}
 
 	if err := k.connectionKeeper.VerifyPacketAcknowledgement(
 		ctx, connectionEnd, proofHeight, proof, packet.GetDestPort(), packet.GetDestChannel(),
 		packet.GetSequence(), acknowledgement,
 	); err != nil {
-		return err
+		return "", err
 	}
 
 	// assert packets acknowledged in order
 	if channel.Ordering == types.ORDERED {
 		nextSequenceAck, found := k.GetNextSequenceAck(ctx, packet.GetSourcePort(), packet.GetSourceChannel())
 		if !found {
-			return errorsmod.Wrapf(
+			return "", errorsmod.Wrapf(
 				types.ErrSequenceAckNotFound,
 				"source port: %s, source channel: %s", packet.GetSourcePort(), packet.GetSourceChannel(),
 			)
 		}
 
 		if packet.GetSequence() != nextSequenceAck {
-			return errorsmod.Wrapf(
+			return "", errorsmod.Wrapf(
 				types.ErrPacketSequenceOutOfOrder,
 				"packet sequence ≠ next ack sequence (%d ≠ %d)", packet.GetSequence(), nextSequenceAck,
 			)
@@ -491,11 +491,11 @@ func (k *Keeper) AcknowledgePacket(
 	if channel.State == types.FLUSHING {
 		if aborted := k.handleFlushState(ctx, packet, channel); aborted {
 			k.Logger(ctx).Info("upgrade aborted", "port_id", packet.GetSourcePort(), "channel_id", packet.GetSourceChannel(), "upgrade_sequence", channel.UpgradeSequence)
-			return nil
+			return channel.Version, nil
 		}
 	}
 
-	return nil
+	return channel.Version, nil
 }
 
 // handleFlushState is called when a packet is acknowledged or timed out and the channel is in
diff --git a/modules/core/04-channel/keeper/packet_test.go b/modules/core/04-channel/keeper/packet_test.go
index 97b6e5795bf..acd7197af19 100644
--- a/modules/core/04-channel/keeper/packet_test.go
+++ b/modules/core/04-channel/keeper/packet_test.go
@@ -666,11 +666,12 @@ func (suite *KeeperTestSuite) TestRecvPacket() {
 			packetKey := host.PacketCommitmentKey(packet.GetSourcePort(), packet.GetSourceChannel(), packet.GetSequence())
 			proof, proofHeight := path.EndpointA.QueryProof(packetKey)
 
-			err := suite.chainB.App.GetIBCKeeper().ChannelKeeper.RecvPacket(suite.chainB.GetContext(), channelCap, packet, proof, proofHeight)
+			channelVersion, err := suite.chainB.App.GetIBCKeeper().ChannelKeeper.RecvPacket(suite.chainB.GetContext(), channelCap, packet, proof, proofHeight)
 
 			expPass := tc.expError == nil
 			if expPass {
 				suite.Require().NoError(err)
+				suite.Require().Equal(path.EndpointA.GetChannel().Version, channelVersion, "channel version is incorrect")
 
 				channelB, _ := suite.chainB.App.GetIBCKeeper().ChannelKeeper.GetChannel(suite.chainB.GetContext(), packet.GetDestPort(), packet.GetDestChannel())
 				nextSeqRecv, found := suite.chainB.App.GetIBCKeeper().ChannelKeeper.GetNextSequenceRecv(suite.chainB.GetContext(), packet.GetDestPort(), packet.GetDestChannel())
@@ -688,6 +689,7 @@ func (suite *KeeperTestSuite) TestRecvPacket() {
 			} else {
 				suite.Require().Error(err)
 				suite.Require().ErrorIs(err, tc.expError)
+				suite.Require().Equal("", channelVersion)
 			}
 		})
 	}
@@ -838,24 +840,27 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 		channelCap *capabilitytypes.Capability
 	)
 
-	assertErr := func(errType *errors.Error) func(commitment []byte, err error) {
-		return func(commitment []byte, err error) {
+	assertErr := func(errType *errors.Error) func(commitment []byte, channelVersion string, err error) {
+		return func(commitment []byte, channelVersion string, err error) {
 			suite.Require().Error(err)
 			suite.Require().ErrorIs(err, errType)
 			suite.Require().NotNil(commitment)
+			suite.Require().Equal("", channelVersion)
 		}
 	}
 
-	assertNoOp := func(commitment []byte, err error) {
+	assertNoOp := func(commitment []byte, channelVersion string, err error) {
 		suite.Require().Error(err)
 		suite.Require().ErrorIs(err, types.ErrNoOpMsg)
 		suite.Require().Nil(commitment)
+		suite.Require().Equal("", channelVersion)
 	}
 
-	assertSuccess := func(seq func() uint64, msg string) func(commitment []byte, err error) {
-		return func(commitment []byte, err error) {
+	assertSuccess := func(seq func() uint64, msg string) func(commitment []byte, channelVersion string, err error) {
+		return func(commitment []byte, channelVersion string, err error) {
 			suite.Require().NoError(err)
 			suite.Require().Nil(commitment)
+			suite.Require().Equal(path.EndpointA.GetChannel().Version, channelVersion)
 
 			nextSequenceAck, found := suite.chainA.App.GetIBCKeeper().ChannelKeeper.GetNextSequenceAck(suite.chainA.GetContext(), packet.GetSourcePort(), packet.GetSourceChannel())
 
@@ -867,7 +872,7 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 	testCases := []struct {
 		name      string
 		malleate  func()
-		expResult func(commitment []byte, err error)
+		expResult func(commitment []byte, channelVersion string, err error)
 		expEvents func(path *ibctesting.Path) []abci.Event
 	}{
 		{
@@ -927,12 +932,13 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 
 				path.EndpointA.UpdateChannel(func(channel *types.Channel) { channel.State = types.FLUSHING })
 			},
-			expResult: func(commitment []byte, err error) {
+			expResult: func(commitment []byte, channelVersion string, err error) {
 				suite.Require().NoError(err)
 				suite.Require().Nil(commitment)
 
 				channel := path.EndpointA.GetChannel()
 				suite.Require().Equal(types.FLUSHING, channel.State)
+				suite.Require().Equal(channel.Version, channelVersion)
 
 				nextSequenceAck, found := suite.chainA.App.GetIBCKeeper().ChannelKeeper.GetNextSequenceAck(suite.chainA.GetContext(), packet.GetSourcePort(), packet.GetSourceChannel())
 				suite.Require().True(found)
@@ -964,12 +970,13 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 
 				path.EndpointA.SetChannelCounterpartyUpgrade(counterpartyUpgrade)
 			},
-			expResult: func(commitment []byte, err error) {
+			expResult: func(commitment []byte, channelVersion string, err error) {
 				suite.Require().NoError(err)
 				suite.Require().Nil(commitment)
 
 				channel := path.EndpointA.GetChannel()
 				suite.Require().Equal(types.FLUSHCOMPLETE, channel.State)
+				suite.Require().Equal(channel.Version, channelVersion)
 
 				nextSequenceAck, found := suite.chainA.App.GetIBCKeeper().ChannelKeeper.GetNextSequenceAck(suite.chainA.GetContext(), packet.GetSourcePort(), packet.GetSourceChannel())
 				suite.Require().True(found)
@@ -1024,12 +1031,13 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 				path.EndpointA.SetChannelUpgrade(upgrade)
 				path.EndpointA.SetChannelCounterpartyUpgrade(counterpartyUpgrade)
 			},
-			expResult: func(commitment []byte, err error) {
+			expResult: func(commitment []byte, channelVersion string, err error) {
 				suite.Require().NoError(err)
 				suite.Require().Nil(commitment)
 
 				channel := path.EndpointA.GetChannel()
 				suite.Require().Equal(types.OPEN, channel.State)
+				suite.Require().Equal(channel.Version, channelVersion)
 
 				nextSequenceAck, found := suite.chainA.App.GetIBCKeeper().ChannelKeeper.GetNextSequenceAck(suite.chainA.GetContext(), packet.GetSourcePort(), packet.GetSourceChannel())
 				suite.Require().True(found)
@@ -1123,10 +1131,11 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 
 				path.EndpointA.UpdateChannel(func(channel *types.Channel) { channel.State = types.FLUSHCOMPLETE })
 			},
-			expResult: func(commitment []byte, err error) {
+			expResult: func(commitment []byte, channelVersion string, err error) {
 				suite.Require().Error(err)
 				suite.Require().ErrorIs(err, types.ErrInvalidChannelState)
 				suite.Require().Nil(commitment)
+				suite.Require().Equal("", channelVersion)
 			},
 		},
 		{
@@ -1193,7 +1202,7 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 				suite.chainA.App.GetIBCKeeper().ChannelKeeper.SetChannel(
 					suite.chainA.GetContext(),
 					path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID,
-					types.NewChannel(types.OPEN, types.ORDERED, types.NewCounterparty(path.EndpointB.ChannelConfig.PortID, path.EndpointB.ChannelID), []string{"connection-1000"}, path.EndpointA.ChannelConfig.Version),
+					types.NewChannel(types.OPEN, types.ORDERED, types.NewCounterparty(path.EndpointB.ChannelConfig.PortID, path.EndpointB.ChannelID), []string{"connection-1000"}, path.EndpointA.GetChannel().Version),
 				)
 
 				suite.chainA.CreateChannelCapability(suite.chainA.GetSimApp().ScopedIBCMockKeeper, path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID)
@@ -1220,7 +1229,7 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 				suite.chainA.App.GetIBCKeeper().ChannelKeeper.SetChannel(
 					suite.chainA.GetContext(),
 					path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID,
-					types.NewChannel(types.OPEN, types.ORDERED, types.NewCounterparty(path.EndpointB.ChannelConfig.PortID, path.EndpointB.ChannelID), []string{path.EndpointA.ConnectionID}, path.EndpointA.ChannelConfig.Version),
+					types.NewChannel(types.OPEN, types.ORDERED, types.NewCounterparty(path.EndpointB.ChannelConfig.PortID, path.EndpointB.ChannelID), []string{path.EndpointA.ConnectionID}, path.EndpointA.GetChannel().Version),
 				)
 				suite.chainA.CreateChannelCapability(suite.chainA.GetSimApp().ScopedIBCMockKeeper, path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID)
 				channelCap = suite.chainA.GetChannelCapability(path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID)
@@ -1334,10 +1343,10 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 			packetKey := host.PacketAcknowledgementKey(packet.GetDestPort(), packet.GetDestChannel(), packet.GetSequence())
 			proof, proofHeight := path.EndpointB.QueryProof(packetKey)
 
-			err := suite.chainA.App.GetIBCKeeper().ChannelKeeper.AcknowledgePacket(ctx, channelCap, packet, ack.Acknowledgement(), proof, proofHeight)
+			channelVersion, err := suite.chainA.App.GetIBCKeeper().ChannelKeeper.AcknowledgePacket(ctx, channelCap, packet, ack.Acknowledgement(), proof, proofHeight)
 
 			commitment := suite.chainA.App.GetIBCKeeper().ChannelKeeper.GetPacketCommitment(ctx, path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID, packet.GetSequence())
-			tc.expResult(commitment, err)
+			tc.expResult(commitment, channelVersion, err)
 			if tc.expEvents != nil {
 				events := ctx.EventManager().ABCIEvents()
 
diff --git a/modules/core/04-channel/keeper/timeout.go b/modules/core/04-channel/keeper/timeout.go
index 1f8649e0f7a..36d82873707 100644
--- a/modules/core/04-channel/keeper/timeout.go
+++ b/modules/core/04-channel/keeper/timeout.go
@@ -28,10 +28,10 @@ func (k *Keeper) TimeoutPacket(
 	proof []byte,
 	proofHeight exported.Height,
 	nextSequenceRecv uint64,
-) error {
+) (string, error) {
 	channel, found := k.GetChannel(ctx, packet.GetSourcePort(), packet.GetSourceChannel())
 	if !found {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrChannelNotFound,
 			"port ID (%s) channel ID (%s)", packet.GetSourcePort(), packet.GetSourceChannel(),
 		)
@@ -41,14 +41,14 @@ func (k *Keeper) TimeoutPacket(
 	// so the capability authentication can be omitted here
 
 	if packet.GetDestPort() != channel.Counterparty.PortId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet destination port doesn't match the counterparty's port (%s ≠ %s)", packet.GetDestPort(), channel.Counterparty.PortId,
 		)
 	}
 
 	if packet.GetDestChannel() != channel.Counterparty.ChannelId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet destination channel doesn't match the counterparty's channel (%s ≠ %s)", packet.GetDestChannel(), channel.Counterparty.ChannelId,
 		)
@@ -56,7 +56,7 @@ func (k *Keeper) TimeoutPacket(
 
 	connectionEnd, found := k.connectionKeeper.GetConnection(ctx, channel.ConnectionHops[0])
 	if !found {
-		return errorsmod.Wrap(
+		return "", errorsmod.Wrap(
 			connectiontypes.ErrConnectionNotFound,
 			channel.ConnectionHops[0],
 		)
@@ -65,12 +65,12 @@ func (k *Keeper) TimeoutPacket(
 	// check that timeout height or timeout timestamp has passed on the other end
 	proofTimestamp, err := k.clientKeeper.GetClientTimestampAtHeight(ctx, connectionEnd.ClientId, proofHeight)
 	if err != nil {
-		return err
+		return "", err
 	}
 
 	timeout := types.NewTimeout(packet.GetTimeoutHeight().(clienttypes.Height), packet.GetTimeoutTimestamp())
 	if !timeout.Elapsed(proofHeight.(clienttypes.Height), proofTimestamp) {
-		return errorsmod.Wrap(timeout.ErrTimeoutNotReached(proofHeight.(clienttypes.Height), proofTimestamp), "packet timeout not reached")
+		return "", errorsmod.Wrap(timeout.ErrTimeoutNotReached(proofHeight.(clienttypes.Height), proofTimestamp), "packet timeout not reached")
 	}
 
 	commitment := k.GetPacketCommitment(ctx, packet.GetSourcePort(), packet.GetSourceChannel(), packet.GetSequence())
@@ -81,21 +81,21 @@ func (k *Keeper) TimeoutPacket(
 		// or there is a misconfigured relayer attempting to prove a timeout
 		// for a packet never sent. Core IBC will treat this error as a no-op in order to
 		// prevent an entire relay transaction from failing and consuming unnecessary fees.
-		return types.ErrNoOpMsg
+		return "", types.ErrNoOpMsg
 	}
 
 	packetCommitment := types.CommitPacket(k.cdc, packet)
 
 	// verify we sent the packet and haven't cleared it out yet
 	if !bytes.Equal(commitment, packetCommitment) {
-		return errorsmod.Wrapf(types.ErrInvalidPacket, "packet commitment bytes are not equal: got (%v), expected (%v)", commitment, packetCommitment)
+		return "", errorsmod.Wrapf(types.ErrInvalidPacket, "packet commitment bytes are not equal: got (%v), expected (%v)", commitment, packetCommitment)
 	}
 
 	switch channel.Ordering {
 	case types.ORDERED:
 		// check that packet has not been received
 		if nextSequenceRecv > packet.GetSequence() {
-			return errorsmod.Wrapf(
+			return "", errorsmod.Wrapf(
 				types.ErrPacketReceived,
 				"packet already received, next sequence receive > packet sequence (%d > %d)", nextSequenceRecv, packet.GetSequence(),
 			)
@@ -116,11 +116,11 @@ func (k *Keeper) TimeoutPacket(
 	}
 
 	if err != nil {
-		return err
+		return "", err
 	}
 
 	// NOTE: the remaining code is located in the TimeoutExecuted function
-	return nil
+	return channel.Version, nil
 }
 
 // TimeoutExecuted deletes the commitment send from this chain after it verifies timeout.
@@ -203,29 +203,29 @@ func (k *Keeper) TimeoutOnClose(
 	proofHeight exported.Height,
 	nextSequenceRecv uint64,
 	counterpartyUpgradeSequence uint64,
-) error {
+) (string, error) {
 	channel, found := k.GetChannel(ctx, packet.GetSourcePort(), packet.GetSourceChannel())
 	if !found {
-		return errorsmod.Wrapf(types.ErrChannelNotFound, "port ID (%s) channel ID (%s)", packet.GetSourcePort(), packet.GetSourceChannel())
+		return "", errorsmod.Wrapf(types.ErrChannelNotFound, "port ID (%s) channel ID (%s)", packet.GetSourcePort(), packet.GetSourceChannel())
 	}
 
 	capName := host.ChannelCapabilityPath(packet.GetSourcePort(), packet.GetSourceChannel())
 	if !k.scopedKeeper.AuthenticateCapability(ctx, chanCap, capName) {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidChannelCapability,
 			"channel capability failed authentication with capability name %s", capName,
 		)
 	}
 
 	if packet.GetDestPort() != channel.Counterparty.PortId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet destination port doesn't match the counterparty's port (%s ≠ %s)", packet.GetDestPort(), channel.Counterparty.PortId,
 		)
 	}
 
 	if packet.GetDestChannel() != channel.Counterparty.ChannelId {
-		return errorsmod.Wrapf(
+		return "", errorsmod.Wrapf(
 			types.ErrInvalidPacket,
 			"packet destination channel doesn't match the counterparty's channel (%s ≠ %s)", packet.GetDestChannel(), channel.Counterparty.ChannelId,
 		)
@@ -233,7 +233,7 @@ func (k *Keeper) TimeoutOnClose(
 
 	connectionEnd, found := k.connectionKeeper.GetConnection(ctx, channel.ConnectionHops[0])
 	if !found {
-		return errorsmod.Wrap(connectiontypes.ErrConnectionNotFound, channel.ConnectionHops[0])
+		return "", errorsmod.Wrap(connectiontypes.ErrConnectionNotFound, channel.ConnectionHops[0])
 	}
 
 	commitment := k.GetPacketCommitment(ctx, packet.GetSourcePort(), packet.GetSourceChannel(), packet.GetSequence())
@@ -244,14 +244,14 @@ func (k *Keeper) TimeoutOnClose(
 		// or there is a misconfigured relayer attempting to prove a timeout
 		// for a packet never sent. Core IBC will treat this error as a no-op in order to
 		// prevent an entire relay transaction from failing and consuming unnecessary fees.
-		return types.ErrNoOpMsg
+		return "", types.ErrNoOpMsg
 	}
 
 	packetCommitment := types.CommitPacket(k.cdc, packet)
 
 	// verify we sent the packet and haven't cleared it out yet
 	if !bytes.Equal(commitment, packetCommitment) {
-		return errorsmod.Wrapf(types.ErrInvalidPacket, "packet commitment bytes are not equal: got (%v), expected (%v)", commitment, packetCommitment)
+		return "", errorsmod.Wrapf(types.ErrInvalidPacket, "packet commitment bytes are not equal: got (%v), expected (%v)", commitment, packetCommitment)
 	}
 
 	counterpartyHops := []string{connectionEnd.Counterparty.ConnectionId}
@@ -272,7 +272,7 @@ func (k *Keeper) TimeoutOnClose(
 		channel.Counterparty.PortId, channel.Counterparty.ChannelId,
 		expectedChannel,
 	); err != nil {
-		return err
+		return "", err
 	}
 
 	var err error
@@ -280,7 +280,7 @@ func (k *Keeper) TimeoutOnClose(
 	case types.ORDERED:
 		// check that packet has not been received
 		if nextSequenceRecv > packet.GetSequence() {
-			return errorsmod.Wrapf(types.ErrInvalidPacket, "packet already received, next sequence receive > packet sequence (%d > %d", nextSequenceRecv, packet.GetSequence())
+			return "", errorsmod.Wrapf(types.ErrInvalidPacket, "packet already received, next sequence receive > packet sequence (%d > %d", nextSequenceRecv, packet.GetSequence())
 		}
 
 		// check that the recv sequence is as claimed
@@ -298,9 +298,9 @@ func (k *Keeper) TimeoutOnClose(
 	}
 
 	if err != nil {
-		return err
+		return "", err
 	}
 
 	// NOTE: the remaining code is located in the TimeoutExecuted function
-	return nil
+	return channel.Version, nil
 }
diff --git a/modules/core/04-channel/keeper/timeout_test.go b/modules/core/04-channel/keeper/timeout_test.go
index 126bb783764..26b55158907 100644
--- a/modules/core/04-channel/keeper/timeout_test.go
+++ b/modules/core/04-channel/keeper/timeout_test.go
@@ -220,12 +220,14 @@ func (suite *KeeperTestSuite) TestTimeoutPacket() {
 				}
 			}
 
-			err := suite.chainA.App.GetIBCKeeper().ChannelKeeper.TimeoutPacket(suite.chainA.GetContext(), packet, proof, proofHeight, nextSeqRecv)
+			channelVersion, err := suite.chainA.App.GetIBCKeeper().ChannelKeeper.TimeoutPacket(suite.chainA.GetContext(), packet, proof, proofHeight, nextSeqRecv)
 
 			if tc.expPass {
 				suite.Require().NoError(err)
+				suite.Require().Equal(path.EndpointA.GetChannel().Version, channelVersion)
 			} else {
 				suite.Require().Error(err)
+				suite.Require().Equal("", channelVersion)
 				// only check if expError is set, since not all error codes can be known
 				if expError != nil {
 					suite.Require().True(errors.Is(err, expError))
@@ -757,7 +759,7 @@ func (suite *KeeperTestSuite) TestTimeoutOnClose() {
 				proof, _ = suite.chainB.QueryProof(unorderedPacketKey)
 			}
 
-			err := suite.chainA.App.GetIBCKeeper().ChannelKeeper.TimeoutOnClose(
+			channelVersion, err := suite.chainA.App.GetIBCKeeper().ChannelKeeper.TimeoutOnClose(
 				suite.chainA.GetContext(),
 				chanCap,
 				packet,
@@ -770,8 +772,10 @@ func (suite *KeeperTestSuite) TestTimeoutOnClose() {
 
 			if tc.expPass {
 				suite.Require().NoError(err)
+				suite.Require().Equal(path.EndpointA.GetChannel().Version, channelVersion)
 			} else {
 				suite.Require().Error(err)
+				suite.Require().Equal("", channelVersion)
 			}
 		})
 	}
diff --git a/modules/core/05-port/types/module.go b/modules/core/05-port/types/module.go
index 7e9b3bf672e..8b2ccf94248 100644
--- a/modules/core/05-port/types/module.go
+++ b/modules/core/05-port/types/module.go
@@ -88,12 +88,14 @@ type IBCModule interface {
 	// and the acknowledgement is written (in synchronous cases).
 	OnRecvPacket(
 		ctx sdk.Context,
+		channelVersion string,
 		packet channeltypes.Packet,
 		relayer sdk.AccAddress,
 	) exported.Acknowledgement
 
 	OnAcknowledgementPacket(
 		ctx sdk.Context,
+		channelVersion string,
 		packet channeltypes.Packet,
 		acknowledgement []byte,
 		relayer sdk.AccAddress,
@@ -101,6 +103,7 @@ type IBCModule interface {
 
 	OnTimeoutPacket(
 		ctx sdk.Context,
+		channelVersion string,
 		packet channeltypes.Packet,
 		relayer sdk.AccAddress,
 	) error
diff --git a/modules/core/ante/ante.go b/modules/core/ante/ante.go
index 9b37e0d79b4..2d08ba0db16 100644
--- a/modules/core/ante/ante.go
+++ b/modules/core/ante/ante.go
@@ -117,7 +117,7 @@ func (rrd RedundantRelayDecorator) recvPacketCheckTx(ctx sdk.Context, msg *chann
 	// If the packet was already received, perform a no-op
 	// Use a cached context to prevent accidental state changes
 	cacheCtx, writeFn := ctx.CacheContext()
-	err = rrd.k.ChannelKeeper.RecvPacket(cacheCtx, capability, msg.Packet, msg.ProofCommitment, msg.ProofHeight)
+	_, err = rrd.k.ChannelKeeper.RecvPacket(cacheCtx, capability, msg.Packet, msg.ProofCommitment, msg.ProofHeight)
 
 	switch err {
 	case nil:
diff --git a/modules/core/ante/ante_test.go b/modules/core/ante/ante_test.go
index f60b75ebd50..1757d3d3534 100644
--- a/modules/core/ante/ante_test.go
+++ b/modules/core/ante/ante_test.go
@@ -351,7 +351,7 @@ func (suite *AnteTestSuite) TestAnteDecoratorCheckTx() {
 			"success on app callback error, app callbacks are skipped for performance",
 			func(suite *AnteTestSuite) []sdk.Msg {
 				suite.chainB.GetSimApp().IBCMockModule.IBCApp.OnRecvPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress,
 				) exported.Acknowledgement {
 					panic(fmt.Errorf("failed OnRecvPacket mock callback"))
 				}
@@ -587,7 +587,7 @@ func (suite *AnteTestSuite) TestAnteDecoratorReCheckTx() {
 			"success on app callback error, app callbacks are skipped for performance",
 			func(suite *AnteTestSuite) []sdk.Msg {
 				suite.chainB.GetSimApp().IBCMockModule.IBCApp.OnRecvPacket = func(
-					ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress,
+					ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress,
 				) exported.Acknowledgement {
 					panic(fmt.Errorf("failed OnRecvPacket mock callback"))
 				}
diff --git a/modules/core/keeper/msg_server.go b/modules/core/keeper/msg_server.go
index 173706e4b21..2f9a2acc7be 100644
--- a/modules/core/keeper/msg_server.go
+++ b/modules/core/keeper/msg_server.go
@@ -473,7 +473,7 @@ func (k *Keeper) RecvPacket(goCtx context.Context, msg *channeltypes.MsgRecvPack
 	// If the packet was already received, perform a no-op
 	// Use a cached context to prevent accidental state changes
 	cacheCtx, writeFn := ctx.CacheContext()
-	err = k.ChannelKeeper.RecvPacket(cacheCtx, capability, msg.Packet, msg.ProofCommitment, msg.ProofHeight)
+	channelVersion, err := k.ChannelKeeper.RecvPacket(cacheCtx, capability, msg.Packet, msg.ProofCommitment, msg.ProofHeight)
 
 	switch err {
 	case nil:
@@ -491,7 +491,7 @@ func (k *Keeper) RecvPacket(goCtx context.Context, msg *channeltypes.MsgRecvPack
 	//
 	// Cache context so that we may discard state changes from callback if the acknowledgement is unsuccessful.
 	cacheCtx, writeFn = ctx.CacheContext()
-	ack := cbs.OnRecvPacket(cacheCtx, msg.Packet, relayer)
+	ack := cbs.OnRecvPacket(cacheCtx, channelVersion, msg.Packet, relayer)
 	if ack == nil || ack.Success() {
 		// write application state changes for asynchronous and successful acknowledgements
 		writeFn()
@@ -545,7 +545,7 @@ func (k *Keeper) Timeout(goCtx context.Context, msg *channeltypes.MsgTimeout) (*
 	// If the timeout was already received, perform a no-op
 	// Use a cached context to prevent accidental state changes
 	cacheCtx, writeFn := ctx.CacheContext()
-	err = k.ChannelKeeper.TimeoutPacket(cacheCtx, msg.Packet, msg.ProofUnreceived, msg.ProofHeight, msg.NextSequenceRecv)
+	channelVersion, err := k.ChannelKeeper.TimeoutPacket(cacheCtx, msg.Packet, msg.ProofUnreceived, msg.ProofHeight, msg.NextSequenceRecv)
 
 	switch err {
 	case nil:
@@ -565,7 +565,7 @@ func (k *Keeper) Timeout(goCtx context.Context, msg *channeltypes.MsgTimeout) (*
 	}
 
 	// Perform application logic callback
-	err = cbs.OnTimeoutPacket(ctx, msg.Packet, relayer)
+	err = cbs.OnTimeoutPacket(ctx, channelVersion, msg.Packet, relayer)
 	if err != nil {
 		ctx.Logger().Error("timeout failed", "port-id", msg.Packet.SourcePort, "channel-id", msg.Packet.SourceChannel, "error", errorsmod.Wrap(err, "timeout packet callback failed"))
 		return nil, errorsmod.Wrap(err, "timeout packet callback failed")
@@ -607,7 +607,7 @@ func (k *Keeper) TimeoutOnClose(goCtx context.Context, msg *channeltypes.MsgTime
 	// If the timeout was already received, perform a no-op
 	// Use a cached context to prevent accidental state changes
 	cacheCtx, writeFn := ctx.CacheContext()
-	err = k.ChannelKeeper.TimeoutOnClose(cacheCtx, capability, msg.Packet, msg.ProofUnreceived, msg.ProofClose, msg.ProofHeight, msg.NextSequenceRecv, msg.CounterpartyUpgradeSequence)
+	channelVersion, err := k.ChannelKeeper.TimeoutOnClose(cacheCtx, capability, msg.Packet, msg.ProofUnreceived, msg.ProofClose, msg.ProofHeight, msg.NextSequenceRecv, msg.CounterpartyUpgradeSequence)
 
 	switch err {
 	case nil:
@@ -630,7 +630,7 @@ func (k *Keeper) TimeoutOnClose(goCtx context.Context, msg *channeltypes.MsgTime
 	//
 	// NOTE: MsgTimeout and MsgTimeoutOnClose use the same "OnTimeoutPacket"
 	// application logic callback.
-	err = cbs.OnTimeoutPacket(ctx, msg.Packet, relayer)
+	err = cbs.OnTimeoutPacket(ctx, channelVersion, msg.Packet, relayer)
 	if err != nil {
 		ctx.Logger().Error("timeout on close failed", "port-id", msg.Packet.SourcePort, "channel-id", msg.Packet.SourceChannel, "error", errorsmod.Wrap(err, "timeout on close callback failed"))
 		return nil, errorsmod.Wrap(err, "timeout on close callback failed")
@@ -672,7 +672,7 @@ func (k *Keeper) Acknowledgement(goCtx context.Context, msg *channeltypes.MsgAck
 	// If the acknowledgement was already received, perform a no-op
 	// Use a cached context to prevent accidental state changes
 	cacheCtx, writeFn := ctx.CacheContext()
-	err = k.ChannelKeeper.AcknowledgePacket(cacheCtx, capability, msg.Packet, msg.Acknowledgement, msg.ProofAcked, msg.ProofHeight)
+	channelVersion, err := k.ChannelKeeper.AcknowledgePacket(cacheCtx, capability, msg.Packet, msg.Acknowledgement, msg.ProofAcked, msg.ProofHeight)
 
 	switch err {
 	case nil:
@@ -687,7 +687,7 @@ func (k *Keeper) Acknowledgement(goCtx context.Context, msg *channeltypes.MsgAck
 	}
 
 	// Perform application logic callback
-	err = cbs.OnAcknowledgementPacket(ctx, msg.Packet, msg.Acknowledgement, relayer)
+	err = cbs.OnAcknowledgementPacket(ctx, channelVersion, msg.Packet, msg.Acknowledgement, relayer)
 	if err != nil {
 		ctx.Logger().Error("acknowledgement failed", "port-id", msg.Packet.SourcePort, "channel-id", msg.Packet.SourceChannel, "error", errorsmod.Wrap(err, "acknowledge packet callback failed"))
 		return nil, errorsmod.Wrap(err, "acknowledge packet callback failed")
diff --git a/testing/mock/ibc_app.go b/testing/mock/ibc_app.go
index b99ebc84b94..798bd35749a 100644
--- a/testing/mock/ibc_app.go
+++ b/testing/mock/ibc_app.go
@@ -69,12 +69,14 @@ type IBCApp struct {
 	// and the acknowledgement is written (in synchronous cases).
 	OnRecvPacket func(
 		ctx sdk.Context,
+		channelVersion string,
 		packet channeltypes.Packet,
 		relayer sdk.AccAddress,
 	) exported.Acknowledgement
 
 	OnAcknowledgementPacket func(
 		ctx sdk.Context,
+		channelVersion string,
 		packet channeltypes.Packet,
 		acknowledgement []byte,
 		relayer sdk.AccAddress,
@@ -82,6 +84,7 @@ type IBCApp struct {
 
 	OnTimeoutPacket func(
 		ctx sdk.Context,
+		channelVersion string,
 		packet channeltypes.Packet,
 		relayer sdk.AccAddress,
 	) error
diff --git a/testing/mock/ibc_module.go b/testing/mock/ibc_module.go
index db7917d3c9b..c698c05d1bd 100644
--- a/testing/mock/ibc_module.go
+++ b/testing/mock/ibc_module.go
@@ -123,9 +123,9 @@ func (im IBCModule) OnChanCloseConfirm(ctx sdk.Context, portID, channelID string
 }
 
 // OnRecvPacket implements the IBCModule interface.
-func (im IBCModule) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress) exported.Acknowledgement {
+func (im IBCModule) OnRecvPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress) exported.Acknowledgement {
 	if im.IBCApp.OnRecvPacket != nil {
-		return im.IBCApp.OnRecvPacket(ctx, packet, relayer)
+		return im.IBCApp.OnRecvPacket(ctx, channelVersion, packet, relayer)
 	}
 
 	// set state by claiming capability to check if revert happens return
@@ -148,9 +148,9 @@ func (im IBCModule) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet, re
 }
 
 // OnAcknowledgementPacket implements the IBCModule interface.
-func (im IBCModule) OnAcknowledgementPacket(ctx sdk.Context, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress) error {
+func (im IBCModule) OnAcknowledgementPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress) error {
 	if im.IBCApp.OnAcknowledgementPacket != nil {
-		return im.IBCApp.OnAcknowledgementPacket(ctx, packet, acknowledgement, relayer)
+		return im.IBCApp.OnAcknowledgementPacket(ctx, channelVersion, packet, acknowledgement, relayer)
 	}
 
 	capName := GetMockAckCanaryCapabilityName(packet)
@@ -166,9 +166,9 @@ func (im IBCModule) OnAcknowledgementPacket(ctx sdk.Context, packet channeltypes
 }
 
 // OnTimeoutPacket implements the IBCModule interface.
-func (im IBCModule) OnTimeoutPacket(ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress) error {
+func (im IBCModule) OnTimeoutPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress) error {
 	if im.IBCApp.OnTimeoutPacket != nil {
-		return im.IBCApp.OnTimeoutPacket(ctx, packet, relayer)
+		return im.IBCApp.OnTimeoutPacket(ctx, channelVersion, packet, relayer)
 	}
 
 	capName := GetMockTimeoutCanaryCapabilityName(packet)
diff --git a/testing/mock/middleware.go b/testing/mock/middleware.go
index 7a5b572cd0d..6d6a33a1a1f 100644
--- a/testing/mock/middleware.go
+++ b/testing/mock/middleware.go
@@ -114,9 +114,9 @@ func (im BlockUpgradeMiddleware) OnChanCloseConfirm(ctx sdk.Context, portID, cha
 }
 
 // OnRecvPacket implements the IBCModule interface.
-func (im BlockUpgradeMiddleware) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress) exported.Acknowledgement {
+func (im BlockUpgradeMiddleware) OnRecvPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress) exported.Acknowledgement {
 	if im.IBCApp.OnRecvPacket != nil {
-		return im.IBCApp.OnRecvPacket(ctx, packet, relayer)
+		return im.IBCApp.OnRecvPacket(ctx, channelVersion, packet, relayer)
 	}
 
 	// set state by claiming capability to check if revert happens return
@@ -137,9 +137,9 @@ func (im BlockUpgradeMiddleware) OnRecvPacket(ctx sdk.Context, packet channeltyp
 }
 
 // OnAcknowledgementPacket implements the IBCModule interface.
-func (im BlockUpgradeMiddleware) OnAcknowledgementPacket(ctx sdk.Context, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress) error {
+func (im BlockUpgradeMiddleware) OnAcknowledgementPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, acknowledgement []byte, relayer sdk.AccAddress) error {
 	if im.IBCApp.OnAcknowledgementPacket != nil {
-		return im.IBCApp.OnAcknowledgementPacket(ctx, packet, acknowledgement, relayer)
+		return im.IBCApp.OnAcknowledgementPacket(ctx, channelVersion, packet, acknowledgement, relayer)
 	}
 
 	capName := GetMockAckCanaryCapabilityName(packet)
@@ -153,9 +153,9 @@ func (im BlockUpgradeMiddleware) OnAcknowledgementPacket(ctx sdk.Context, packet
 }
 
 // OnTimeoutPacket implements the IBCModule interface.
-func (im BlockUpgradeMiddleware) OnTimeoutPacket(ctx sdk.Context, packet channeltypes.Packet, relayer sdk.AccAddress) error {
+func (im BlockUpgradeMiddleware) OnTimeoutPacket(ctx sdk.Context, channelVersion string, packet channeltypes.Packet, relayer sdk.AccAddress) error {
 	if im.IBCApp.OnTimeoutPacket != nil {
-		return im.IBCApp.OnTimeoutPacket(ctx, packet, relayer)
+		return im.IBCApp.OnTimeoutPacket(ctx, channelVersion, packet, relayer)
 	}
 
 	capName := GetMockTimeoutCanaryCapabilityName(packet)