diff --git a/CHANGELOG.md b/CHANGELOG.md
index 17c70cb718f6..3e82d2bd46ad 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -99,6 +99,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (gRPC) [\#9015](https://github.com/cosmos/cosmos-sdk/pull/9015) Fix invalid status code when accessing gRPC endpoints.
 * (gRPC) [\#8945](https://github.com/cosmos/cosmos-sdk/pull/8945) gRPC reflection now works correctly.
 * (keyring) [#\8635](https://github.com/cosmos/cosmos-sdk/issues/8635) Remove hardcoded default passphrase value on `NewMnemonic`
 * (x/bank) [\#8434](https://github.com/cosmos/cosmos-sdk/pull/8434) Fix legacy REST API `GET /bank/total` and `GET /bank/total/{denom}` in swagger
diff --git a/client/query.go b/client/query.go
index bb65d9bf3833..e79779ce571b 100644
--- a/client/query.go
+++ b/client/query.go
@@ -6,6 +6,8 @@ import (
 	"strings"
 
 	"github.com/pkg/errors"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/status"
 
 	abci "github.com/tendermint/tendermint/abci/types"
 	tmbytes "github.com/tendermint/tendermint/libs/bytes"
@@ -13,6 +15,7 @@ import (
 
 	"github.com/cosmos/cosmos-sdk/store/rootmulti"
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 )
 
 // GetNode returns an RPC client. If the context's client is not defined, an
@@ -84,7 +87,7 @@ func (ctx Context) queryABCI(req abci.RequestQuery) (abci.ResponseQuery, error)
 	}
 
 	if !result.Response.IsOK() {
-		return abci.ResponseQuery{}, errors.New(result.Response.Log)
+		return abci.ResponseQuery{}, sdkErrorToGRPCError(result.Response)
 	}
 
 	// data from trusted node or subspace query doesn't need verification
@@ -95,6 +98,19 @@ func (ctx Context) queryABCI(req abci.RequestQuery) (abci.ResponseQuery, error)
 	return result.Response, nil
 }
 
+func sdkErrorToGRPCError(resp abci.ResponseQuery) error {
+	switch resp.Code {
+	case sdkerrors.ErrInvalidRequest.ABCICode():
+		return status.Error(codes.InvalidArgument, resp.Log)
+	case sdkerrors.ErrUnauthorized.ABCICode():
+		return status.Error(codes.Unauthenticated, resp.Log)
+	case sdkerrors.ErrKeyNotFound.ABCICode():
+		return status.Error(codes.NotFound, resp.Log)
+	default:
+		return status.Error(codes.Unknown, resp.Log)
+	}
+}
+
 // query performs a query to a Tendermint node with the provided store name
 // and path. It returns the result and height of the query upon success
 // or an error if the query fails.
diff --git a/x/staking/client/rest/grpc_query_test.go b/x/staking/client/rest/grpc_query_test.go
index 69e9f34adc23..6e98844c4cb4 100644
--- a/x/staking/client/rest/grpc_query_test.go
+++ b/x/staking/client/rest/grpc_query_test.go
@@ -4,13 +4,16 @@ package rest_test
 
 import (
 	"fmt"
+	"io/ioutil"
+	"net/http"
 	"testing"
 
-	"github.com/cosmos/cosmos-sdk/client/flags"
-
 	"github.com/gogo/protobuf/proto"
 	"github.com/stretchr/testify/suite"
 
+	"github.com/cosmos/cosmos-sdk/client/flags"
+	"github.com/cosmos/cosmos-sdk/crypto/hd"
+	"github.com/cosmos/cosmos-sdk/crypto/keyring"
 	"github.com/cosmos/cosmos-sdk/testutil"
 	"github.com/cosmos/cosmos-sdk/testutil/network"
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -411,6 +414,35 @@ func (s *IntegrationTestSuite) TestQueryUnbondingDelegationGRPC() {
 	}
 }
 
+func (s *IntegrationTestSuite) TestQueryDelegationsResponseCode() {
+	val := s.network.Validators[0]
+
+	// Create new account in the keyring.
+	info, _, err := val.ClientCtx.Keyring.NewMnemonic("test", keyring.English, sdk.FullFundraiserPath, keyring.DefaultBIP39Passphrase, hd.Secp256k1)
+	s.Require().NoError(err)
+	newAddr := sdk.AccAddress(info.GetPubKey().Address())
+
+	s.T().Log("expect 404 error for address without delegations")
+	res, statusCode, err := getRequest(fmt.Sprintf("%s/cosmos/staking/v1beta1/delegations/%s", val.APIAddress, newAddr.String()))
+	s.Require().NoError(err)
+	s.Require().Contains(string(res), "\"code\": 5")
+	s.Require().Equal(404, statusCode)
+}
+
+func getRequest(url string) ([]byte, int, error) {
+	res, err := http.Get(url) // nolint:gosec
+	body, err := ioutil.ReadAll(res.Body)
+	if err != nil {
+		return nil, res.StatusCode, err
+	}
+
+	if err = res.Body.Close(); err != nil {
+		return nil, res.StatusCode, err
+	}
+
+	return body, res.StatusCode, nil
+}
+
 func (s *IntegrationTestSuite) TestQueryDelegatorDelegationsGRPC() {
 	val := s.network.Validators[0]
 	baseURL := val.APIAddress