diff --git a/modules/core/04-channel/keeper/upgrade.go b/modules/core/04-channel/keeper/upgrade.go
index 9d50031ab13..a07c2730076 100644
--- a/modules/core/04-channel/keeper/upgrade.go
+++ b/modules/core/04-channel/keeper/upgrade.go
@@ -319,7 +319,7 @@ func (k Keeper) ChanUpgradeOpen(
 	portID,
 	channelID string,
 	counterpartyChannelState types.State,
-	proofChannel []byte,
+	proofCounterpartyChannel []byte,
 	proofHeight clienttypes.Height,
 ) error {
 	if k.hasInflightPackets(ctx, portID, channelID) {
@@ -397,8 +397,14 @@ func (k Keeper) ChanUpgradeOpen(
 		panic(fmt.Sprintf("counterparty channel state should be in one of [%s, %s, %s]; got %s", types.TRYUPGRADE, types.ACKUPGRADE, types.OPEN, counterpartyChannelState))
 	}
 
-	err = k.connectionKeeper.VerifyChannelState(ctx, connection, proofHeight, proofChannel, portID, channelID, counterpartyChannel)
-	if err != nil {
+	if err = k.connectionKeeper.VerifyChannelState(
+		ctx,
+		connection,
+		proofHeight, proofCounterpartyChannel,
+		channel.Counterparty.PortId,
+		channel.Counterparty.ChannelId,
+		counterpartyChannel,
+	); err != nil {
 		return errorsmod.Wrapf(err, "failed to verify counterparty channel, expected counterparty channel state: %s", counterpartyChannel.String())
 	}
 
diff --git a/modules/core/04-channel/keeper/upgrade_test.go b/modules/core/04-channel/keeper/upgrade_test.go
index 9ff671d4541..5130f23d45d 100644
--- a/modules/core/04-channel/keeper/upgrade_test.go
+++ b/modules/core/04-channel/keeper/upgrade_test.go
@@ -707,6 +707,14 @@ func (suite *KeeperTestSuite) TestChanUpgradeOpen() {
 		},
 	}
 
+	// Create an initial path used only to invoke a ChanOpenInit handshake.
+	// This bumps the channel identifier generated for chain A on the
+	// next path used to run the upgrade handshake.
+	// See issue 4062.
+	path = ibctesting.NewPath(suite.chainA, suite.chainB)
+	suite.coordinator.SetupConnections(path)
+	suite.Require().NoError(path.EndpointA.ChanOpenInit())
+
 	for _, tc := range testCases {
 		tc := tc
 		suite.Run(tc.name, func() {