diff --git a/CHANGELOG.md b/CHANGELOG.md
index cfba0b2b0ffe..5bb7d2a4751c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -44,6 +44,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 * (x/group, x/gov) [#17109](https://github.com/cosmos/cosmos-sdk/pull/17109) Let proposal summary be 40x longer than metadata limit.
 * (all) [#16537](https://github.com/cosmos/cosmos-sdk/pull/16537) Properly propagated `fmt.Errorf` errors and using `errors.New` where appropriate.
+* (version) [#17096](https://github.com/cosmos/cosmos-sdk/pull/17096) Improve `getSDKVersion()` to handle module replacements
 
 ### Bug Fixes
 
diff --git a/version/version.go b/version/version.go
index a41834e336c2..502185ad9a0c 100644
--- a/version/version.go
+++ b/version/version.go
@@ -44,7 +44,11 @@ func getSDKVersion() string {
 	var sdkVersion string
 	for _, dep := range deps.Deps {
 		if dep.Path == "github.com/cosmos/cosmos-sdk" {
-			sdkVersion = dep.Version
+			if dep.Replace != nil && dep.Replace.Version != "(devel)" {
+				sdkVersion = dep.Replace.Version
+			} else {
+				sdkVersion = dep.Version
+			}
 		}
 	}