diff --git a/gnovm/pkg/gnolang/values_conversions.go b/gnovm/pkg/gnolang/values_conversions.go
index 9fc2ce4a567..cc7c0de9f09 100644
--- a/gnovm/pkg/gnolang/values_conversions.go
+++ b/gnovm/pkg/gnolang/values_conversions.go
@@ -1240,12 +1240,14 @@ func ConvertUntypedBigdecTo(dst *TypedValue, bv BigdecValue, t Type) {
 	case Float32Kind:
 		dst.T = t
 		dst.V = nil
-		f64, _ := bd.Float64()
+		f64, err := bd.Float64()
+		if err != nil {
+			panic(fmt.Errorf("cannot convert untyped bigdec to float64: %w", err))
+		}
+
 		bf := big.NewFloat(f64)
-		f32, acc := bf.Float32()
-		if f32 == 0 && (acc == big.Below || acc == big.Above) {
-			panic("cannot convert untyped bigdec to float32 -- too close to zero")
-		} else if math.IsInf(float64(f32), 0) {
+		f32, _ := bf.Float32()
+		if math.IsInf(float64(f32), 0) {
 			panic("cannot convert untyped bigdec to float32 -- too close to +-Inf")
 		}
 		dst.SetFloat32(f32)
@@ -1253,10 +1255,11 @@ func ConvertUntypedBigdecTo(dst *TypedValue, bv BigdecValue, t Type) {
 	case Float64Kind:
 		dst.T = t
 		dst.V = nil
-		f64, _ := bd.Float64()
-		if f64 == 0 && !bd.IsZero() {
-			panic("cannot convert untyped bigdec to float64 -- too close to zero")
-		} else if math.IsInf(f64, 0) {
+		f64, err := bd.Float64()
+		if err != nil {
+			panic(fmt.Errorf("cannot convert untyped bigdec to float64: %w", err))
+		}
+		if math.IsInf(f64, 0) {
 			panic("cannot convert untyped bigdec to float64 -- too close to +-Inf")
 		}
 		dst.SetFloat64(f64)
diff --git a/gnovm/pkg/gnolang/values_conversions_test.go b/gnovm/pkg/gnolang/values_conversions_test.go
new file mode 100644
index 00000000000..b9ac9e68d68
--- /dev/null
+++ b/gnovm/pkg/gnolang/values_conversions_test.go
@@ -0,0 +1,25 @@
+package gnolang
+
+import (
+	"math"
+	"testing"
+
+	"github.com/cockroachdb/apd"
+	"github.com/stretchr/testify/require"
+)
+
+func TestConvertUntypedBigdecToFloat(t *testing.T) {
+	dst := &TypedValue{}
+
+	dec, err := apd.New(-math.MaxInt64, -4).SetFloat64(math.SmallestNonzeroFloat64 / 2)
+	require.NoError(t, err)
+	bd := BigdecValue{
+		V: dec,
+	}
+
+	typ := Float64Type
+
+	ConvertUntypedBigdecTo(dst, bd, typ)
+
+	require.Equal(t, float64(0), dst.GetFloat64())
+}
diff --git a/gnovm/tests/files/float6.gno b/gnovm/tests/files/float6.gno
new file mode 100644
index 00000000000..680b9461975
--- /dev/null
+++ b/gnovm/tests/files/float6.gno
@@ -0,0 +1,13 @@
+package main
+
+const (
+	SmallestNonzeroFloat64 = 0x1p-1022 * 0x1p-52 // 4.9406564584124654417656879286822137236505980e-324
+	DividedByTwo           = SmallestNonzeroFloat64 / 2
+)
+
+func main() {
+	println(DividedByTwo)
+}
+
+// Output:
+// 0
diff --git a/gnovm/tests/files/float7.gno b/gnovm/tests/files/float7.gno
new file mode 100644
index 00000000000..f519a963523
--- /dev/null
+++ b/gnovm/tests/files/float7.gno
@@ -0,0 +1,15 @@
+package main
+
+const (
+	SmallestNonzeroFloat32 = 0x1p-126 * 0x1p-23 // 1.401298464324817070923729583289916131280e-45
+	DividedByTwo           = SmallestNonzeroFloat32 / 2
+)
+
+func main() {
+	var i float32
+	i = DividedByTwo
+	println(i)
+}
+
+// Output:
+// 0