diff --git a/CHANGELOG.md b/CHANGELOG.md
index f880875ef46..40cb14e56ea 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -44,6 +44,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Breaking Changes
 
+* [#1825](https://github.com/osmosis-labs/osmosis/pull/1825) Fixes Interchain Accounts (host side) by adding it to AppModuleBasics
 * [#1699](https://github.com/osmosis-labs/osmosis/pull/1699) Fixes bug in sig fig rounding on spot price queries for small values
 
 #### golang API breaks
diff --git a/app/keepers/modules.go b/app/keepers/modules.go
index 481ace248d5..b0766bf1b6b 100644
--- a/app/keepers/modules.go
+++ b/app/keepers/modules.go
@@ -26,6 +26,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/staking"
 	"github.com/cosmos/cosmos-sdk/x/upgrade"
 	upgradeclient "github.com/cosmos/cosmos-sdk/x/upgrade/client"
+	ica "github.com/cosmos/ibc-go/v3/modules/apps/27-interchain-accounts"
 
 	_ "github.com/osmosis-labs/osmosis/v7/client/docs/statik"
 	"github.com/osmosis-labs/osmosis/v7/x/epochs"
@@ -83,4 +84,5 @@ var AppModuleBasics = []module.AppModuleBasic{
 	tokenfactory.AppModuleBasic{},
 	bech32ibc.AppModuleBasic{},
 	wasm.AppModuleBasic{},
+	ica.AppModuleBasic{},
 }
diff --git a/app/upgrades/v9/upgrades.go b/app/upgrades/v9/upgrades.go
index cde2f3f8c39..dfe54bde5aa 100644
--- a/app/upgrades/v9/upgrades.go
+++ b/app/upgrades/v9/upgrades.go
@@ -38,6 +38,9 @@ func CreateUpgradeHandler(
 			return nil, err
 		}
 
+		// save oldIcaVersion, so we can skip icahost.InitModule in longer term tests.
+		oldIcaVersion := fromVM[icatypes.ModuleName]
+
 		// Add Interchain Accounts host module
 		// set the ICS27 consensus version so InitGenesis is not run
 		fromVM[icatypes.ModuleName] = mm.Modules[icatypes.ModuleName].ConsensusVersion()
@@ -79,7 +82,10 @@ func CreateUpgradeHandler(
 			panic("mm.Modules[icatypes.ModuleName] is not of type ica.AppModule")
 		}
 
-		icamodule.InitModule(ctx, controllerParams, hostParams)
+		// skip InitModule in upgrade tests after the upgrade has gone through.
+		if oldIcaVersion != fromVM[icatypes.ModuleName] {
+			icamodule.InitModule(ctx, controllerParams, hostParams)
+		}
 
 		return mm.RunMigrations(ctx, configurator, fromVM)
 	}