diff --git a/modules/apps/callbacks/v2/ibc_middleware_test.go b/modules/apps/callbacks/v2/ibc_middleware_test.go
index 23455365fce..991fda4bf01 100644
--- a/modules/apps/callbacks/v2/ibc_middleware_test.go
+++ b/modules/apps/callbacks/v2/ibc_middleware_test.go
@@ -2,6 +2,7 @@ package v2_test
 
 import (
 	"fmt"
+	"time"
 
 	errorsmod "cosmossdk.io/errors"
 	storetypes "cosmossdk.io/store/types"
@@ -474,7 +475,7 @@ func (s *CallbacksTestSuite) TestOnTimeoutPacket() {
 			// NOTE: we call send packet so transfer is setup with the correct logic to
 			// succeed on timeout
 			userGasLimit := 600_000
-			timeoutTimestamp := uint64(s.chainB.GetContext().BlockTime().Unix())
+			timeoutTimestamp := uint64(s.chainB.GetContext().BlockTime().Add(time.Second).Unix())
 			packetData = transfertypes.NewFungibleTokenPacketData(
 				ibctesting.TestCoin.Denom,
 				ibctesting.TestCoin.Amount.String(),
diff --git a/modules/core/04-channel/v2/keeper/msg_server_test.go b/modules/core/04-channel/v2/keeper/msg_server_test.go
index ad249547b65..d58a82c0d38 100644
--- a/modules/core/04-channel/v2/keeper/msg_server_test.go
+++ b/modules/core/04-channel/v2/keeper/msg_server_test.go
@@ -461,7 +461,9 @@ func (suite *KeeperTestSuite) TestMsgTimeout() {
 			path.SetupV2()
 
 			// Send packet from A to B
-			timeoutTimestamp := uint64(suite.chainA.GetContext().BlockTime().Unix())
+			// make timeoutTimestamp 1 second more than sending chain time to ensure it passes SendPacket
+			// and times out successfully after update
+			timeoutTimestamp := uint64(suite.chainA.GetContext().BlockTime().Add(time.Second).Unix())
 			mockData := mockv2.NewMockPayload(mockv2.ModuleNameA, mockv2.ModuleNameB)
 
 			var err error
diff --git a/modules/core/04-channel/v2/keeper/packet.go b/modules/core/04-channel/v2/keeper/packet.go
index 34c10f94f82..ddf14733472 100644
--- a/modules/core/04-channel/v2/keeper/packet.go
+++ b/modules/core/04-channel/v2/keeper/packet.go
@@ -33,8 +33,8 @@ func (k *Keeper) sendPacket(
 	// Note, the validate basic function in sendPacket does the timeoutTimestamp != 0 check and other stateless checks on the packet.
 	// timeoutTimestamp must be greater than current block time
 	timeout := time.Unix(int64(timeoutTimestamp), 0)
-	if timeout.Before(ctx.BlockTime()) {
-		return 0, "", errorsmod.Wrap(types.ErrTimeoutElapsed, "timeout is less than the current block timestamp")
+	if !timeout.After(ctx.BlockTime()) {
+		return 0, "", errorsmod.Wrapf(types.ErrTimeoutElapsed, "timeout is less than or equal the current block timestamp, %d <= %d", timeoutTimestamp, ctx.BlockTime().Unix())
 	}
 
 	// timeoutTimestamp must be less than current block time + MaxTimeoutDelta
diff --git a/modules/core/04-channel/v2/keeper/packet_test.go b/modules/core/04-channel/v2/keeper/packet_test.go
index eb1bacc6e2a..de4c2ee3545 100644
--- a/modules/core/04-channel/v2/keeper/packet_test.go
+++ b/modules/core/04-channel/v2/keeper/packet_test.go
@@ -80,6 +80,12 @@ func (suite *KeeperTestSuite) TestSendPacket() {
 			},
 			clienttypes.ErrInvalidHeight,
 		},
+		{
+			"timeout equal to sending chain blocktime", func() {
+				packet.TimeoutTimestamp = uint64(suite.chainA.GetContext().BlockTime().Unix())
+			},
+			types.ErrTimeoutElapsed,
+		},
 		{
 			"timeout elapsed", func() {
 				packet.TimeoutTimestamp = 1
@@ -563,7 +569,9 @@ func (suite *KeeperTestSuite) TestTimeoutPacket() {
 			// create default packet with a timed out timestamp
 			payload := mockv2.NewMockPayload(mockv2.ModuleNameA, mockv2.ModuleNameB)
 
-			timeoutTimestamp := uint64(suite.chainB.GetContext().BlockTime().Unix())
+			// make timeoutTimestamp 1 second more than sending chain time to ensure it passes SendPacket
+			// and times out successfully after update
+			timeoutTimestamp := uint64(suite.chainB.GetContext().BlockTime().Add(time.Second).Unix())
 
 			// test cases may mutate timeout values
 			packet = types.NewPacket(1, path.EndpointA.ClientID, path.EndpointB.ClientID,
diff --git a/modules/core/ante/ante_test.go b/modules/core/ante/ante_test.go
index b374847d182..29b3477d15e 100644
--- a/modules/core/ante/ante_test.go
+++ b/modules/core/ante/ante_test.go
@@ -170,7 +170,7 @@ func (suite *AnteTestSuite) createTimeoutMessage(isRedundant bool) sdk.Msg {
 
 // createTimeoutMessageV2 creates a V2 Timeout message for a packet sent from chain B to chain A.
 func (suite *AnteTestSuite) createTimeoutMessageV2(isRedundant bool) *channeltypesv2.MsgTimeout {
-	timeoutTimestamp := uint64(suite.chainB.GetContext().BlockTime().Unix())
+	timeoutTimestamp := uint64(suite.chainB.GetContext().BlockTime().Add(time.Second).Unix())
 	packet, err := suite.path.EndpointB.MsgSendPacket(timeoutTimestamp, mock.NewMockPayload(mock.ModuleNameA, mock.ModuleNameB))
 	suite.Require().NoError(err)