diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3a4ea03b66..2a1e333a42 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -67,6 +67,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (x/auth) [#1319](https://github.com/Finschia/finschia-sdk/pull/1319) prevent signing from wrong key in multisig
 * (x/mint, x/slashing) [\#1323](https://github.com/Finschia/finschia-sdk/pull/1323) add missing nil check for params validation
 * (x/server) [\#1337](https://github.com/Finschia/finschia-sdk/pull/1337) fix panic when defining minimum gas config as `100stake;100uatom`. Use a `,` delimiter instead of `;`. Fixes the server config getter to use the correct delimiter (backport cosmos/cosmos-sdk#18537)
+* (x/fbridge) [\#1361](https://github.com/Finschia/finschia-sdk/pull/1361) Fixes fbridge auth checking bug
 
 ### Removed
 
diff --git a/x/fbridge/keeper/keeper.go b/x/fbridge/keeper/keeper.go
index c20ee8e34d..2cd5967f5a 100644
--- a/x/fbridge/keeper/keeper.go
+++ b/x/fbridge/keeper/keeper.go
@@ -37,10 +37,15 @@ func NewKeeper(
 		panic(errors.New("fbridge module account has not been set"))
 	}
 
+	found := false
 	for _, addr := range types.AuthorityCandiates() {
 		if authority == addr.String() {
+			found = true
 			break
 		}
+	}
+
+	if !found {
 		panic("x/bridge authority must be the gov or foundation module account")
 	}
 
diff --git a/x/fbridge/keeper/keeper_test.go b/x/fbridge/keeper/keeper_test.go
new file mode 100644
index 0000000000..f1e5891058
--- /dev/null
+++ b/x/fbridge/keeper/keeper_test.go
@@ -0,0 +1,64 @@
+package keeper_test
+
+import (
+	"testing"
+
+	"github.com/golang/mock/gomock"
+	"github.com/stretchr/testify/require"
+
+	authtypes "github.com/Finschia/finschia-sdk/x/auth/types"
+	"github.com/Finschia/finschia-sdk/x/fbridge/keeper"
+	"github.com/Finschia/finschia-sdk/x/fbridge/testutil"
+	"github.com/Finschia/finschia-sdk/x/fbridge/types"
+	"github.com/Finschia/finschia-sdk/x/foundation"
+	govtypes "github.com/Finschia/finschia-sdk/x/gov/types"
+)
+
+func TestNewKeeper(t *testing.T) {
+	key, memKey, _, encCfg, _, bankKeeper, _ := testutil.PrepareFbridgeTest(t, 0)
+	authKeeper := testutil.NewMockAccountKeeper(gomock.NewController(t))
+
+	tcs := map[string]struct {
+		malleate func()
+		isPanic  bool
+	}{
+		"fbridge module account has not been set": {
+			malleate: func() {
+				authKeeper.EXPECT().GetModuleAddress(types.ModuleName).Return(nil).Times(1)
+				keeper.NewKeeper(encCfg.Codec, key, memKey, authKeeper, bankKeeper, "stake", types.DefaultAuthority().String())
+			},
+			isPanic: true,
+		},
+		"fbridge authority must be the gov or foundation module account": {
+			malleate: func() {
+				authKeeper.EXPECT().GetModuleAddress(types.ModuleName).Return(authtypes.NewModuleAddress(types.ModuleName)).Times(1)
+				keeper.NewKeeper(encCfg.Codec, key, memKey, authKeeper, bankKeeper, "stake", authtypes.NewModuleAddress("invalid").String())
+			},
+			isPanic: true,
+		},
+		"success - gov authority": {
+			malleate: func() {
+				authKeeper.EXPECT().GetModuleAddress(types.ModuleName).Return(authtypes.NewModuleAddress(types.ModuleName)).Times(1)
+				keeper.NewKeeper(encCfg.Codec, key, memKey, authKeeper, bankKeeper, "stake", authtypes.NewModuleAddress(govtypes.ModuleName).String())
+			},
+			isPanic: false,
+		},
+		"success - foundation authority": {
+			malleate: func() {
+				authKeeper.EXPECT().GetModuleAddress(types.ModuleName).Return(authtypes.NewModuleAddress(types.ModuleName)).Times(1)
+				keeper.NewKeeper(encCfg.Codec, key, memKey, authKeeper, bankKeeper, "stake", authtypes.NewModuleAddress(foundation.ModuleName).String())
+			},
+			isPanic: false,
+		},
+	}
+
+	for name, tc := range tcs {
+		t.Run(name, func(t *testing.T) {
+			if tc.isPanic {
+				require.Panics(t, tc.malleate)
+			} else {
+				tc.malleate()
+			}
+		})
+	}
+}