diff --git a/modules/core/02-client/types/errors.go b/modules/core/02-client/types/errors.go
index 116e322ac6d..f663019ab0f 100644
--- a/modules/core/02-client/types/errors.go
+++ b/modules/core/02-client/types/errors.go
@@ -39,4 +39,5 @@ var (
 	ErrRouteNotFound                          = errorsmod.Register(SubModuleName, 32, "light client module route not found")
 	ErrClientTypeNotSupported                 = errorsmod.Register(SubModuleName, 33, "client type not supported")
 	ErrInvalidCounterparty                    = errorsmod.Register(SubModuleName, 34, "invalid counterparty")
+	ErrCounterpartyNotFound                   = errorsmod.Register(SubModuleName, 35, "counterparty not found")
 )
diff --git a/modules/core/keeper/msg_server_test.go b/modules/core/keeper/msg_server_test.go
index 43e59b1c130..4a87d594d09 100644
--- a/modules/core/keeper/msg_server_test.go
+++ b/modules/core/keeper/msg_server_test.go
@@ -307,7 +307,7 @@ func (suite *KeeperTestSuite) TestRecvPacketV2() {
 				// any non-nil value of packet is valid
 				suite.Require().NotNil(packet)
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 			false,
 			false,
 			false,
@@ -670,7 +670,7 @@ func (suite *KeeperTestSuite) TestAcknowledgePacketV2() {
 			func() {
 				packet.SourceChannel = "invalid-client"
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 			false,
 		},
 		{
@@ -996,7 +996,7 @@ func (suite *KeeperTestSuite) TestTimeoutPacketV2() {
 
 				packetKey = host.PacketReceiptKey(packet.GetDestPort(), packet.GetDestChannel(), packet.GetSequence())
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 			false,
 		},
 	}
diff --git a/modules/core/packet-server/keeper/keeper.go b/modules/core/packet-server/keeper/keeper.go
index b816df12fd8..894ebb59b4a 100644
--- a/modules/core/packet-server/keeper/keeper.go
+++ b/modules/core/packet-server/keeper/keeper.go
@@ -59,7 +59,7 @@ func (k Keeper) SendPacket(
 	// Lookup counterparty associated with our source channel to retrieve the destination channel
 	counterparty, ok := k.ClientKeeper.GetCounterparty(ctx, sourceChannel)
 	if !ok {
-		return 0, channeltypes.ErrChannelNotFound
+		return 0, errorsmod.Wrap(clienttypes.ErrCounterpartyNotFound, sourceChannel)
 	}
 	destChannel := counterparty.ClientId
 
@@ -131,11 +131,11 @@ func (k Keeper) RecvPacket(
 		return "", channeltypes.ErrInvalidPacket
 	}
 
-	// Lookup counterparty associated with our channel and ensure that it was packet was indeed
-	// sent by our counterparty.
+	// Lookup counterparty associated with our channel and ensure
+	// that the packet was indeed sent by our counterparty.
 	counterparty, ok := k.ClientKeeper.GetCounterparty(ctx, packet.DestinationChannel)
 	if !ok {
-		return "", channeltypes.ErrChannelNotFound
+		return "", errorsmod.Wrap(clienttypes.ErrCounterpartyNotFound, packet.DestinationChannel)
 	}
 	if counterparty.ClientId != packet.SourceChannel {
 		return "", channeltypes.ErrInvalidChannelIdentifier
@@ -206,11 +206,11 @@ func (k Keeper) WriteAcknowledgement(
 		return channeltypes.ErrInvalidPacket
 	}
 
-	// Lookup counterparty associated with our channel and ensure that it was packet was indeed
-	// sent by our counterparty.
+	// Lookup counterparty associated with our channel and ensure
+	// that the packet was indeed sent by our counterparty.
 	counterparty, ok := k.ClientKeeper.GetCounterparty(ctx, packet.DestinationChannel)
 	if !ok {
-		return channeltypes.ErrChannelNotFound
+		return errorsmod.Wrap(clienttypes.ErrCounterpartyNotFound, packet.DestinationChannel)
 	}
 	if counterparty.ClientId != packet.SourceChannel {
 		return channeltypes.ErrInvalidChannelIdentifier
@@ -263,11 +263,11 @@ func (k Keeper) AcknowledgePacket(
 		return "", channeltypes.ErrInvalidPacket
 	}
 
-	// Lookup counterparty associated with our channel and ensure that it was packet was indeed
-	// sent by our counterparty.
+	// Lookup counterparty associated with our channel and ensure
+	// that the packet was indeed sent by our counterparty.
 	counterparty, ok := k.ClientKeeper.GetCounterparty(ctx, packet.SourceChannel)
 	if !ok {
-		return "", channeltypes.ErrChannelNotFound
+		return "", errorsmod.Wrap(clienttypes.ErrCounterpartyNotFound, packet.SourceChannel)
 	}
 
 	if counterparty.ClientId != packet.DestinationChannel {
@@ -334,11 +334,11 @@ func (k Keeper) TimeoutPacket(
 	if packet.ProtocolVersion != channeltypes.IBC_VERSION_2 {
 		return "", channeltypes.ErrInvalidPacket
 	}
-	// Lookup counterparty associated with our channel and ensure that destination channel
-	// is the expected counterparty
+	// Lookup counterparty associated with our channel and ensure
+	// that the packet was indeed sent by our counterparty.
 	counterparty, ok := k.ClientKeeper.GetCounterparty(ctx, packet.SourceChannel)
 	if !ok {
-		return "", channeltypes.ErrChannelNotFound
+		return "", errorsmod.Wrap(clienttypes.ErrCounterpartyNotFound, packet.SourceChannel)
 	}
 
 	if counterparty.ClientId != packet.DestinationChannel {
diff --git a/modules/core/packet-server/keeper/keeper_test.go b/modules/core/packet-server/keeper/keeper_test.go
index 513a5412dbb..183f32a6be4 100644
--- a/modules/core/packet-server/keeper/keeper_test.go
+++ b/modules/core/packet-server/keeper/keeper_test.go
@@ -58,20 +58,39 @@ func (suite *KeeperTestSuite) TestSendPacket() {
 		malleate func()
 		expError error
 	}{
-		{"success", func() {}, nil},
-		{"counterparty not found", func() {
-			packet.SourceChannel = ibctesting.FirstChannelID
-		}, channeltypes.ErrChannelNotFound},
-		{"packet failed basic validation", func() {
-			// invalid data
-			packet.Data = nil
-		}, channeltypes.ErrInvalidPacket},
-		{"client status invalid", func() {
-			path.EndpointA.FreezeClient()
-		}, clienttypes.ErrClientNotActive},
-		{"timeout elapsed", func() {
-			packet.TimeoutTimestamp = 1
-		}, channeltypes.ErrTimeoutElapsed},
+		{
+			"success",
+			func() {},
+			nil,
+		},
+		{
+			"counterparty not found",
+			func() {
+				packet.SourceChannel = ibctesting.FirstChannelID
+			},
+			clienttypes.ErrCounterpartyNotFound,
+		},
+		{
+			"packet failed basic validation",
+			func() {
+				// invalid data
+				packet.Data = nil
+			},
+			channeltypes.ErrInvalidPacket,
+		},
+		{
+			"client status invalid",
+			func() {
+				path.EndpointA.FreezeClient()
+			},
+			clienttypes.ErrClientNotActive,
+		},
+		{
+			"timeout elapsed", func() {
+				packet.TimeoutTimestamp = 1
+			},
+			channeltypes.ErrTimeoutElapsed,
+		},
 	}
 
 	for i, tc := range testCases {
@@ -139,7 +158,7 @@ func (suite *KeeperTestSuite) TestRecvPacket() {
 			func() {
 				packet.DestinationChannel = ibctesting.FirstChannelID
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 		},
 		{
 			"failure: client is not active",
@@ -246,7 +265,7 @@ func (suite *KeeperTestSuite) TestWriteAcknowledgement() {
 			func() {
 				packet.DestinationChannel = ibctesting.FirstChannelID
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 		},
 		{
 			"failure: counterparty client identifier different than source channel",
@@ -347,7 +366,7 @@ func (suite *KeeperTestSuite) TestAcknowledgePacket() {
 			func() {
 				packet.SourceChannel = ibctesting.FirstChannelID
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 		},
 		{
 			"failure: counterparty client identifier different than source channel",
@@ -489,7 +508,7 @@ func (suite *KeeperTestSuite) TestTimeoutPacket() {
 
 				packet.SourceChannel = ibctesting.FirstChannelID
 			},
-			channeltypes.ErrChannelNotFound,
+			clienttypes.ErrCounterpartyNotFound,
 		},
 		{
 			"failure: counterparty client identifier different than source channel",