diff --git a/e2e/tests/wasm/grandpa_test.go b/e2e/tests/wasm/grandpa_test.go
index a6169a8560f..6aa250b1885 100644
--- a/e2e/tests/wasm/grandpa_test.go
+++ b/e2e/tests/wasm/grandpa_test.go
@@ -19,10 +19,13 @@ import (
 	"github.com/strangelove-ventures/interchaintest/v8/testutil"
 	testifysuite "github.com/stretchr/testify/suite"
 
+	cmtjson "github.com/cometbft/cometbft/libs/json"
+
 	"cosmossdk.io/math"
 
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	paramsproposaltypes "github.com/cosmos/cosmos-sdk/x/params/types/proposal"
 
 	"github.com/cosmos/ibc-go/e2e/testsuite"
 	"github.com/cosmos/ibc-go/e2e/testvalues"
@@ -30,6 +33,7 @@ import (
 	transfertypes "github.com/cosmos/ibc-go/v8/modules/apps/transfer/types"
 	clienttypes "github.com/cosmos/ibc-go/v8/modules/core/02-client/types"
 	ibcexported "github.com/cosmos/ibc-go/v8/modules/core/exported"
+	ibctesting "github.com/cosmos/ibc-go/v8/testing"
 )
 
 const (
@@ -124,6 +128,11 @@ func (s *GrandpaTestSuite) TestMsgTransfer_Succeeds_GrandpaContract() {
 	err = r.GeneratePath(ctx, eRep, cosmosChain.Config().ChainID, polkadotChain.Config().ChainID, pathName)
 	s.Require().NoError(err)
 
+	t.Run("add 08-wasm to list of allowed clients", func(t *testing.T) {
+		allowedClients := s.queryAllowedClientsParam(ctx, cosmosChain)
+		s.allowWasmClients(ctx, cosmosChain, cosmosWallet, allowedClients)
+	})
+
 	// Create new clients
 	err = r.CreateClients(ctx, eRep, pathName, ibc.DefaultClientOpts())
 	s.Require().NoError(err)
@@ -276,6 +285,11 @@ func (s *GrandpaTestSuite) TestMsgTransfer_TimesOut_GrandpaContract() {
 	err = r.GeneratePath(ctx, eRep, cosmosChain.Config().ChainID, polkadotChain.Config().ChainID, pathName)
 	s.Require().NoError(err)
 
+	t.Run("add 08-wasm to list of allowed clients", func(t *testing.T) {
+		allowedClients := s.queryAllowedClientsParam(ctx, cosmosChain)
+		s.allowWasmClients(ctx, cosmosChain, cosmosWallet, allowedClients)
+	})
+
 	// Create new clients
 	err = r.CreateClients(ctx, eRep, pathName, ibc.DefaultClientOpts())
 	s.Require().NoError(err)
@@ -340,6 +354,7 @@ func (s *GrandpaTestSuite) TestMsgTransfer_TimesOut_GrandpaContract() {
 // * Migrates the wasm client contract
 func (s *GrandpaTestSuite) TestMsgMigrateContract_Success_GrandpaContract() {
 	ctx := context.Background()
+	t := s.T()
 
 	chainA, chainB := s.GetGrandpaTestChains()
 
@@ -377,6 +392,11 @@ func (s *GrandpaTestSuite) TestMsgMigrateContract_Success_GrandpaContract() {
 	err = r.GeneratePath(ctx, eRep, cosmosChain.Config().ChainID, polkadotChain.Config().ChainID, pathName)
 	s.Require().NoError(err)
 
+	t.Run("add 08-wasm to list of allowed clients", func(t *testing.T) {
+		allowedClients := s.queryAllowedClientsParam(ctx, cosmosChain)
+		s.allowWasmClients(ctx, cosmosChain, cosmosWallet, allowedClients)
+	})
+
 	// Create new clients
 	err = r.CreateClients(ctx, eRep, pathName, ibc.DefaultClientOpts())
 	s.Require().NoError(err)
@@ -427,6 +447,7 @@ func (s *GrandpaTestSuite) TestMsgMigrateContract_Success_GrandpaContract() {
 // * Migrates the wasm client contract with a contract that will always fail migration
 func (s *GrandpaTestSuite) TestMsgMigrateContract_ContractError_GrandpaContract() {
 	ctx := context.Background()
+	t := s.T()
 
 	chainA, chainB := s.GetGrandpaTestChains()
 
@@ -463,6 +484,11 @@ func (s *GrandpaTestSuite) TestMsgMigrateContract_ContractError_GrandpaContract(
 	err = r.GeneratePath(ctx, eRep, cosmosChain.Config().ChainID, polkadotChain.Config().ChainID, pathName)
 	s.Require().NoError(err)
 
+	t.Run("add 08-wasm to list of allowed clients", func(t *testing.T) {
+		allowedClients := s.queryAllowedClientsParam(ctx, cosmosChain)
+		s.allowWasmClients(ctx, cosmosChain, cosmosWallet, allowedClients)
+	})
+
 	// Create new clients
 	err = r.CreateClients(ctx, eRep, pathName, ibc.DefaultClientOpts())
 	s.Require().NoError(err)
@@ -510,6 +536,7 @@ func (s *GrandpaTestSuite) TestMsgMigrateContract_ContractError_GrandpaContract(
 // This contract modifies the unbonding period to 1600s with the trusting period being calculated as (unbonding period / 3).
 func (s *GrandpaTestSuite) TestRecoverClient_Succeeds_GrandpaContract() {
 	ctx := context.Background()
+	t := s.T()
 
 	// set the trusting period to a value which will still be valid upon client creation, but invalid before the first update
 	// the contract uses 1600s as the unbonding period with the trusting period evaluating to (unbonding period / 3)
@@ -553,8 +580,13 @@ func (s *GrandpaTestSuite) TestRecoverClient_Succeeds_GrandpaContract() {
 	err = r.GeneratePath(ctx, eRep, cosmosChain.Config().ChainID, polkadotChain.Config().ChainID, pathName)
 	s.Require().NoError(err)
 
+	t.Run("add 08-wasm to list of allowed clients", func(t *testing.T) {
+		allowedClients := s.queryAllowedClientsParam(ctx, cosmosChain)
+		s.allowWasmClients(ctx, cosmosChain, cosmosWallet, allowedClients)
+	})
+
 	// create client pair with subject (bad trusting period)
-	subjectClientID := clienttypes.FormatClientIdentifier(ibcexported.Wasm, 0)
+	subjectClientID := clienttypes.FormatClientIdentifier(wasmtypes.Wasm, 0)
 	// TODO: The hyperspace relayer makes no use of create client opts
 	// https://github.com/strangelove-ventures/interchaintest/blob/main/relayer/hyperspace/hyperspace_commander.go#L83
 	s.SetupClients(ctx, r, ibc.CreateClientOptions{
@@ -569,7 +601,7 @@ func (s *GrandpaTestSuite) TestRecoverClient_Succeeds_GrandpaContract() {
 	time.Sleep(modifiedTrustingPeriod)
 
 	// create client pair with substitute
-	substituteClientID := clienttypes.FormatClientIdentifier(ibcexported.Wasm, 1)
+	substituteClientID := clienttypes.FormatClientIdentifier(wasmtypes.Wasm, 1)
 	s.SetupClients(ctx, r, ibc.DefaultClientOpts())
 
 	// wait for block
@@ -753,3 +785,48 @@ func (s *GrandpaTestSuite) GetGrandpaTestChains() (ibc.Chain, ibc.Chain) {
 		options.ChainBSpec.EncodingConfig = testsuite.SDKEncodingConfig()
 	})
 }
+
+// queryAllowedClientsParam queries the on-chain allowed clients param for 02-client
+func (s *GrandpaTestSuite) queryAllowedClientsParam(ctx context.Context, chain ibc.Chain) []string {
+	if testvalues.SelfParamsFeatureReleases.IsSupported(chain.Config().Images[0].Version) {
+		queryClient := s.GetChainGRCPClients(chain).ClientQueryClient
+		res, err := queryClient.ClientParams(ctx, &clienttypes.QueryClientParamsRequest{})
+		s.Require().NoError(err)
+
+		return res.Params.AllowedClients
+	}
+	queryClient := s.GetChainGRCPClients(chain).ParamsQueryClient
+	res, err := queryClient.Params(ctx, &paramsproposaltypes.QueryParamsRequest{
+		Subspace: ibcexported.ModuleName,
+		Key:      string(clienttypes.KeyAllowedClients),
+	})
+	s.Require().NoError(err)
+
+	var allowedClients []string
+	err = cmtjson.Unmarshal([]byte(res.Param.Value), &allowedClients)
+	s.Require().NoError(err)
+
+	return allowedClients
+}
+
+// allowWasmClients adds 08-wasm to the on-chain allowed clients param for 02-client
+func (s *GrandpaTestSuite) allowWasmClients(ctx context.Context, chain ibc.Chain, wallet ibc.Wallet, allowedClients []string) {
+	govModuleAddress, err := s.QueryModuleAccountAddress(ctx, govtypes.ModuleName, chain)
+	s.Require().NoError(err)
+	s.Require().NotNil(govModuleAddress)
+
+	allowedClients = append(allowedClients, wasmtypes.Wasm)
+	if testvalues.SelfParamsFeatureReleases.IsSupported(chain.Config().Images[0].Version) {
+		msg := clienttypes.NewMsgUpdateParams(govModuleAddress.String(), clienttypes.NewParams(allowedClients...))
+		s.ExecuteAndPassGovV1Proposal(ctx, msg, chain, wallet)
+	} else {
+		value, err := cmtjson.Marshal(allowedClients)
+		s.Require().NoError(err)
+		changes := []paramsproposaltypes.ParamChange{
+			paramsproposaltypes.NewParamChange(ibcexported.ModuleName, string(clienttypes.KeyAllowedClients), string(value)),
+		}
+
+		proposal := paramsproposaltypes.NewParameterChangeProposal(ibctesting.Title, ibctesting.Description, changes)
+		s.ExecuteAndPassGovV1Beta1Proposal(ctx, chain, wallet, proposal)
+	}
+}
diff --git a/modules/core/02-client/types/params.go b/modules/core/02-client/types/params.go
index dc9b70b5cbc..2234f049e66 100644
--- a/modules/core/02-client/types/params.go
+++ b/modules/core/02-client/types/params.go
@@ -9,7 +9,7 @@ import (
 )
 
 // DefaultAllowedClients are the default clients for the AllowedClients parameter.
-var DefaultAllowedClients = []string{exported.Solomachine, exported.Tendermint, exported.Wasm, exported.Localhost}
+var DefaultAllowedClients = []string{exported.Solomachine, exported.Tendermint, exported.Localhost}
 
 // NewParams creates a new parameter configuration for the ibc client module
 func NewParams(allowedClients ...string) Params {
diff --git a/modules/core/exported/client.go b/modules/core/exported/client.go
index 3a5d5fb0f31..cf5d11ca617 100644
--- a/modules/core/exported/client.go
+++ b/modules/core/exported/client.go
@@ -22,9 +22,6 @@ const (
 	// Tendermint is used to indicate that the client uses the Tendermint Consensus Algorithm.
 	Tendermint string = "07-tendermint"
 
-	// Wasm is used to indicate that the light client is a on-chain wasm program
-	Wasm string = "08-wasm"
-
 	// Localhost is the client type for the localhost client.
 	Localhost string = "09-localhost"
 
diff --git a/modules/light-clients/08-wasm/keeper/keeper_test.go b/modules/light-clients/08-wasm/keeper/keeper_test.go
index d2337806b2b..00b915b373a 100644
--- a/modules/light-clients/08-wasm/keeper/keeper_test.go
+++ b/modules/light-clients/08-wasm/keeper/keeper_test.go
@@ -79,6 +79,8 @@ func (suite *KeeperTestSuite) SetupWasmWithMockVM() {
 
 	suite.coordinator = ibctesting.NewCoordinator(suite.T(), 1)
 	suite.chainA = suite.coordinator.GetChain(ibctesting.GetChainID(1))
+
+	wasmtesting.AllowWasmClients(suite.chainA)
 }
 
 func (suite *KeeperTestSuite) setupWasmWithMockVM() (ibctesting.TestingApp, map[string]json.RawMessage) {
diff --git a/modules/light-clients/08-wasm/testing/wasm_endpoint.go b/modules/light-clients/08-wasm/testing/wasm_endpoint.go
index 6d126ea35c9..5d391e547a8 100644
--- a/modules/light-clients/08-wasm/testing/wasm_endpoint.go
+++ b/modules/light-clients/08-wasm/testing/wasm_endpoint.go
@@ -50,3 +50,12 @@ func (endpoint *WasmEndpoint) CreateClient() error {
 
 	return nil
 }
+
+// AllowWasmClients adds 08-wasm to the list of allowed clients
+func AllowWasmClients(chain *ibctesting.TestChain) {
+	ctx := chain.GetContext()
+	clientKeeper := chain.App.GetIBCKeeper().ClientKeeper
+	params := clientKeeper.GetParams(ctx)
+	params.AllowedClients = append(params.AllowedClients, types.Wasm)
+	clientKeeper.SetParams(ctx, params)
+}
diff --git a/modules/light-clients/08-wasm/types/client_message.go b/modules/light-clients/08-wasm/types/client_message.go
index 483a9ed135c..51409c5aaa9 100644
--- a/modules/light-clients/08-wasm/types/client_message.go
+++ b/modules/light-clients/08-wasm/types/client_message.go
@@ -10,7 +10,7 @@ var _ exported.ClientMessage = &ClientMessage{}
 
 // ClientType is a Wasm light client.
 func (ClientMessage) ClientType() string {
-	return exported.Wasm
+	return Wasm
 }
 
 // ValidateBasic defines a basic validation for the wasm client message.
diff --git a/modules/light-clients/08-wasm/types/client_message_test.go b/modules/light-clients/08-wasm/types/client_message_test.go
index 4fa2a6ffc51..c405e3fe0f8 100644
--- a/modules/light-clients/08-wasm/types/client_message_test.go
+++ b/modules/light-clients/08-wasm/types/client_message_test.go
@@ -2,7 +2,6 @@ package types_test
 
 import (
 	"github.com/cosmos/ibc-go/modules/light-clients/08-wasm/types"
-	"github.com/cosmos/ibc-go/v8/modules/core/exported"
 )
 
 func (suite *TypesTestSuite) TestClientMessageValidateBasic() {
@@ -38,7 +37,7 @@ func (suite *TypesTestSuite) TestClientMessageValidateBasic() {
 		suite.Run(tc.name, func() {
 			clientMessage := tc.clientMessage
 
-			suite.Require().Equal(exported.Wasm, clientMessage.ClientType())
+			suite.Require().Equal(types.Wasm, clientMessage.ClientType())
 			err := clientMessage.ValidateBasic()
 
 			if tc.expPass {
diff --git a/modules/light-clients/08-wasm/types/client_state.go b/modules/light-clients/08-wasm/types/client_state.go
index 095cfa31096..1764df16d5a 100644
--- a/modules/light-clients/08-wasm/types/client_state.go
+++ b/modules/light-clients/08-wasm/types/client_state.go
@@ -28,7 +28,7 @@ func NewClientState(data []byte, checksum []byte, height clienttypes.Height) *Cl
 
 // ClientType is Wasm light client.
 func (ClientState) ClientType() string {
-	return exported.Wasm
+	return Wasm
 }
 
 // GetLatestHeight returns latest block height.
diff --git a/modules/light-clients/08-wasm/types/consensus_state.go b/modules/light-clients/08-wasm/types/consensus_state.go
index 28483e4e53b..b3e88c3cfce 100644
--- a/modules/light-clients/08-wasm/types/consensus_state.go
+++ b/modules/light-clients/08-wasm/types/consensus_state.go
@@ -17,7 +17,7 @@ func NewConsensusState(data []byte) *ConsensusState {
 
 // ClientType returns Wasm type.
 func (ConsensusState) ClientType() string {
-	return exported.Wasm
+	return Wasm
 }
 
 // GetTimestamp returns block time in nanoseconds of the header that created consensus state.
diff --git a/modules/light-clients/08-wasm/types/consensus_state_test.go b/modules/light-clients/08-wasm/types/consensus_state_test.go
index 375f49243f1..76a75be6525 100644
--- a/modules/light-clients/08-wasm/types/consensus_state_test.go
+++ b/modules/light-clients/08-wasm/types/consensus_state_test.go
@@ -2,7 +2,6 @@ package types_test
 
 import (
 	"github.com/cosmos/ibc-go/modules/light-clients/08-wasm/types"
-	"github.com/cosmos/ibc-go/v8/modules/core/exported"
 )
 
 func (suite *TypesTestSuite) TestConsensusStateValidateBasic() {
@@ -31,7 +30,7 @@ func (suite *TypesTestSuite) TestConsensusStateValidateBasic() {
 	for _, tc := range testCases {
 		suite.Run(tc.name, func() {
 			// check just to increase coverage
-			suite.Require().Equal(exported.Wasm, tc.consensusState.ClientType())
+			suite.Require().Equal(types.Wasm, tc.consensusState.ClientType())
 
 			err := tc.consensusState.ValidateBasic()
 			if tc.expectPass {
diff --git a/modules/light-clients/08-wasm/types/keys.go b/modules/light-clients/08-wasm/types/keys.go
index a02f69974b8..bea78c2c0d0 100644
--- a/modules/light-clients/08-wasm/types/keys.go
+++ b/modules/light-clients/08-wasm/types/keys.go
@@ -6,4 +6,7 @@ const (
 
 	// StoreKey is the store key string for 08-wasm
 	StoreKey = ModuleName
+
+	// Wasm is the client type for IBC light clients created using 08-wasm
+	Wasm = ModuleName
 )
diff --git a/modules/light-clients/08-wasm/types/types_test.go b/modules/light-clients/08-wasm/types/types_test.go
index e1729f66997..866f0535a6f 100644
--- a/modules/light-clients/08-wasm/types/types_test.go
+++ b/modules/light-clients/08-wasm/types/types_test.go
@@ -79,6 +79,8 @@ func (suite *TypesTestSuite) SetupWasmWithMockVM() {
 	suite.coordinator = ibctesting.NewCoordinator(suite.T(), 1)
 	suite.chainA = suite.coordinator.GetChain(ibctesting.GetChainID(1))
 	suite.checksum = storeWasmCode(suite, wasmtesting.Code)
+
+	wasmtesting.AllowWasmClients(suite.chainA)
 }
 
 func (suite *TypesTestSuite) setupWasmWithMockVM() (ibctesting.TestingApp, map[string]json.RawMessage) {
diff --git a/modules/light-clients/08-wasm/types/validation.go b/modules/light-clients/08-wasm/types/validation.go
index 843d560ca46..d40650a90c9 100644
--- a/modules/light-clients/08-wasm/types/validation.go
+++ b/modules/light-clients/08-wasm/types/validation.go
@@ -7,7 +7,6 @@ import (
 
 	clienttypes "github.com/cosmos/ibc-go/v8/modules/core/02-client/types"
 	host "github.com/cosmos/ibc-go/v8/modules/core/24-host"
-	"github.com/cosmos/ibc-go/v8/modules/core/exported"
 )
 
 const maxWasmSize = 3 * 1024 * 1024
@@ -50,8 +49,8 @@ func ValidateClientID(clientID string) error {
 		return errorsmod.Wrapf(host.ErrInvalidID, "invalid client identifier %s", clientID)
 	}
 
-	if !strings.HasPrefix(clientID, exported.Wasm) {
-		return errorsmod.Wrapf(host.ErrInvalidID, "client identifier %s does not contain %s prefix", clientID, exported.Wasm)
+	if !strings.HasPrefix(clientID, Wasm) {
+		return errorsmod.Wrapf(host.ErrInvalidID, "client identifier %s does not contain %s prefix", clientID, Wasm)
 	}
 
 	return nil
diff --git a/modules/light-clients/08-wasm/types/validation_test.go b/modules/light-clients/08-wasm/types/validation_test.go
index 3389c51c954..0dda66e13ac 100644
--- a/modules/light-clients/08-wasm/types/validation_test.go
+++ b/modules/light-clients/08-wasm/types/validation_test.go
@@ -11,7 +11,6 @@ import (
 	wasmtesting "github.com/cosmos/ibc-go/modules/light-clients/08-wasm/testing"
 	"github.com/cosmos/ibc-go/modules/light-clients/08-wasm/types"
 	host "github.com/cosmos/ibc-go/v8/modules/core/24-host"
-	"github.com/cosmos/ibc-go/v8/modules/core/exported"
 	ibctesting "github.com/cosmos/ibc-go/v8/testing"
 )
 
@@ -143,7 +142,7 @@ func TestValidateClientID(t *testing.T) {
 			func() {
 				clientID = ibctesting.FirstClientID
 			},
-			errorsmod.Wrapf(host.ErrInvalidID, "client identifier %s does not contain %s prefix", ibctesting.FirstClientID, exported.Wasm),
+			errorsmod.Wrapf(host.ErrInvalidID, "client identifier %s does not contain %s prefix", ibctesting.FirstClientID, types.Wasm),
 		},
 	}