diff --git a/CHANGELOG.md b/CHANGELOG.md
index c9f009c0a82e..c57ebaba359f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -45,6 +45,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 ### Bug Fixes
 
 * (client) [#10226](https://github.com/cosmos/cosmos-sdk/pull/10226) Fix --home flag parsing. 
+* [\#10394](https://github.com/cosmos/cosmos-sdk/issues/10394) Fixes issue related to grpc-gateway of account balance by ibc-denom.
 
 ## [v0.42.10](https://github.com/cosmos/cosmos-sdk/releases/tag/v0.42.10) - 2021-09-28
 
diff --git a/docs/core/proto-docs.md b/docs/core/proto-docs.md
index fa4a816e1cc8..3ea030940de5 100644
--- a/docs/core/proto-docs.md
+++ b/docs/core/proto-docs.md
@@ -9999,4 +9999,3 @@ that implements Misbehaviour interface expected by ICS-02
 | <a name="bool" /> bool |  | bool | boolean | boolean | bool | bool | boolean | TrueClass/FalseClass |
 | <a name="string" /> string | A string must always contain UTF-8 encoded or 7-bit ASCII text. | string | String | str/unicode | string | string | string | String (UTF-8) |
 | <a name="bytes" /> bytes | May contain any arbitrary sequence of bytes. | string | ByteString | str | []byte | ByteString | string | String (ASCII-8BIT) |
-
diff --git a/proto/cosmos/bank/v1beta1/query.proto b/proto/cosmos/bank/v1beta1/query.proto
index bc5e29137a95..ddf146d9d913 100644
--- a/proto/cosmos/bank/v1beta1/query.proto
+++ b/proto/cosmos/bank/v1beta1/query.proto
@@ -13,7 +13,7 @@ option go_package = "github.com/cosmos/cosmos-sdk/x/bank/types";
 service Query {
   // Balance queries the balance of a single coin for a single account.
   rpc Balance(QueryBalanceRequest) returns (QueryBalanceResponse) {
-    option (google.api.http).get = "/cosmos/bank/v1beta1/balances/{address}/{denom}";
+    option (google.api.http).get = "/cosmos/bank/v1beta1/balances/{address}/by_denom";
   }
 
   // AllBalances queries the balance of all coins for a single account.
diff --git a/x/bank/client/rest/grpc_query_test.go b/x/bank/client/rest/grpc_query_test.go
index d6290a1fef94..37dc8eaa9d8e 100644
--- a/x/bank/client/rest/grpc_query_test.go
+++ b/x/bank/client/rest/grpc_query_test.go
@@ -227,7 +227,7 @@ func (s *IntegrationTestSuite) TestBalancesGRPCHandler() {
 		},
 		{
 			"gPRC account balance of a denom",
-			fmt.Sprintf("%s/cosmos/bank/v1beta1/balances/%s/%s", baseURL, val.Address.String(), s.cfg.BondDenom),
+			fmt.Sprintf("%s/cosmos/bank/v1beta1/balances/%s/by_denom?denom=%s", baseURL, val.Address.String(), s.cfg.BondDenom),
 			&types.QueryBalanceResponse{},
 			&types.QueryBalanceResponse{
 				Balance: &sdk.Coin{
@@ -238,7 +238,7 @@ func (s *IntegrationTestSuite) TestBalancesGRPCHandler() {
 		},
 		{
 			"gPRC account balance of a bogus denom",
-			fmt.Sprintf("%s/cosmos/bank/v1beta1/balances/%s/foobar", baseURL, val.Address.String()),
+			fmt.Sprintf("%s/cosmos/bank/v1beta1/balances/%s/by_denom?denom=foobar", baseURL, val.Address.String()),
 			&types.QueryBalanceResponse{},
 			&types.QueryBalanceResponse{
 				Balance: &sdk.Coin{
diff --git a/x/bank/types/query.pb.gw.go b/x/bank/types/query.pb.gw.go
index 06c7e2d04aa5..7c846ca7441a 100644
--- a/x/bank/types/query.pb.gw.go
+++ b/x/bank/types/query.pb.gw.go
@@ -31,6 +31,10 @@ var _ = runtime.String
 var _ = utilities.NewDoubleArray
 var _ = descriptor.ForMessage
 
+var (
+	filter_Query_Balance_0 = &utilities.DoubleArray{Encoding: map[string]int{"address": 0}, Base: []int{1, 1, 0}, Check: []int{0, 1, 2}}
+)
+
 func request_Query_Balance_0(ctx context.Context, marshaler runtime.Marshaler, client QueryClient, req *http.Request, pathParams map[string]string) (proto.Message, runtime.ServerMetadata, error) {
 	var protoReq QueryBalanceRequest
 	var metadata runtime.ServerMetadata
@@ -53,15 +57,11 @@ func request_Query_Balance_0(ctx context.Context, marshaler runtime.Marshaler, c
 		return nil, metadata, status.Errorf(codes.InvalidArgument, "type mismatch, parameter: %s, error: %v", "address", err)
 	}
 
-	val, ok = pathParams["denom"]
-	if !ok {
-		return nil, metadata, status.Errorf(codes.InvalidArgument, "missing parameter %s", "denom")
+	if err := req.ParseForm(); err != nil {
+		return nil, metadata, status.Errorf(codes.InvalidArgument, "%v", err)
 	}
-
-	protoReq.Denom, err = runtime.String(val)
-
-	if err != nil {
-		return nil, metadata, status.Errorf(codes.InvalidArgument, "type mismatch, parameter: %s, error: %v", "denom", err)
+	if err := runtime.PopulateQueryParameters(&protoReq, req.Form, filter_Query_Balance_0); err != nil {
+		return nil, metadata, status.Errorf(codes.InvalidArgument, "%v", err)
 	}
 
 	msg, err := client.Balance(ctx, &protoReq, grpc.Header(&metadata.HeaderMD), grpc.Trailer(&metadata.TrailerMD))
@@ -91,15 +91,11 @@ func local_request_Query_Balance_0(ctx context.Context, marshaler runtime.Marsha
 		return nil, metadata, status.Errorf(codes.InvalidArgument, "type mismatch, parameter: %s, error: %v", "address", err)
 	}
 
-	val, ok = pathParams["denom"]
-	if !ok {
-		return nil, metadata, status.Errorf(codes.InvalidArgument, "missing parameter %s", "denom")
+	if err := req.ParseForm(); err != nil {
+		return nil, metadata, status.Errorf(codes.InvalidArgument, "%v", err)
 	}
-
-	protoReq.Denom, err = runtime.String(val)
-
-	if err != nil {
-		return nil, metadata, status.Errorf(codes.InvalidArgument, "type mismatch, parameter: %s, error: %v", "denom", err)
+	if err := runtime.PopulateQueryParameters(&protoReq, req.Form, filter_Query_Balance_0); err != nil {
+		return nil, metadata, status.Errorf(codes.InvalidArgument, "%v", err)
 	}
 
 	msg, err := server.Balance(ctx, &protoReq)