diff --git a/modules/core/04-channel/types/acknowledgement.go b/modules/core/04-channel/types/acknowledgement.go
index 27617d391f5..bfe7247f9cc 100644
--- a/modules/core/04-channel/types/acknowledgement.go
+++ b/modules/core/04-channel/types/acknowledgement.go
@@ -26,6 +26,26 @@ func NewResultAcknowledgement(result []byte) Acknowledgement {
 	}
 }
 
+// NewErrorAcknowledgementWithCodespace returns a new instance of Acknowledgement using an Acknowledgement_Error
+// type in the Response field.
+// NOTE: The error includes the ABCI codespace and code in the error string to provide more information about the module
+// that generated the error. This is useful for debugging but can potentially introduce non-determinism if care is
+// not taken to ensure the codespace doesn't change in non state-machine breaking versions.
+func NewErrorAcknowledgementWithCodespace(err error) Acknowledgement {
+	// The ABCI code is included in the abcitypes.ResponseDeliverTx hash
+	// constructed in Tendermint and is therefore deterministic.
+	// However, a code without codespace is incomplete information (e.g. sdk/5 and wasm/5 are
+	// different errors). We add this codespace here, in oder to provide a meaningful error
+	// identifier which means changing the codespace of an error becomes a consensus breaking change.
+	codespace, code, _ := errorsmod.ABCIInfo(err, false)
+
+	return Acknowledgement{
+		Response: &Acknowledgement_Error{
+			Error: fmt.Sprintf("ABCI error: %s/%d: %s", codespace, code, ackErrorString),
+		},
+	}
+}
+
 // NewErrorAcknowledgement returns a new instance of Acknowledgement using an Acknowledgement_Error
 // type in the Response field.
 // NOTE: Acknowledgements are written into state and thus, changes made to error strings included in packet acknowledgements
diff --git a/modules/core/04-channel/types/acknowledgement_test.go b/modules/core/04-channel/types/acknowledgement_test.go
index 71234065321..e6d30873deb 100644
--- a/modules/core/04-channel/types/acknowledgement_test.go
+++ b/modules/core/04-channel/types/acknowledgement_test.go
@@ -141,3 +141,35 @@ func (suite *TypesTestSuite) TestAcknowledgementError() {
 	suite.Require().Equal(ack, ackSameABCICode)
 	suite.Require().NotEqual(ack, ackDifferentABCICode)
 }
+
+func (suite TypesTestSuite) TestAcknowledgementWithCodespace() { //nolint:govet // this is a test, we are okay with copying locks
+	testCases := []struct {
+		name     string
+		ack      types.Acknowledgement
+		expBytes []byte
+	}{
+		{
+			"valid failed ack",
+			types.NewErrorAcknowledgementWithCodespace(ibcerrors.ErrInsufficientFunds),
+			[]byte(`{"error":"ABCI error: ibc/3: error handling packet: see events for details"}`),
+		},
+		{
+			"unknown error",
+			types.NewErrorAcknowledgementWithCodespace(fmt.Errorf("unknown error")),
+			[]byte(`{"error":"ABCI error: undefined/1: error handling packet: see events for details"}`),
+		},
+		{
+			"nil error",
+			types.NewErrorAcknowledgementWithCodespace(nil),
+			[]byte(`{"error":"ABCI error: /0: error handling packet: see events for details"}`),
+		},
+	}
+
+	for _, tc := range testCases {
+		tc := tc
+
+		suite.Run(tc.name, func() {
+			suite.Require().Equal(tc.expBytes, tc.ack.Acknowledgement())
+		})
+	}
+}