diff --git a/.changelog/unreleased/features/3079-init-ics-epochs.md b/.changelog/unreleased/features/3079-init-ics-epochs.md
new file mode 100644
index 00000000000..c1f112ffe9e
--- /dev/null
+++ b/.changelog/unreleased/features/3079-init-ics-epochs.md
@@ -0,0 +1,2 @@
+- Initialize ICS epochs by adding a consumer validator set for every existing consumer chain.
+  ([\#3079](https://github.com/cosmos/gaia/pull/3079))
\ No newline at end of file
diff --git a/.changelog/unreleased/state-breaking/3079-init-ics-epochs.md b/.changelog/unreleased/state-breaking/3079-init-ics-epochs.md
new file mode 100644
index 00000000000..c1f112ffe9e
--- /dev/null
+++ b/.changelog/unreleased/state-breaking/3079-init-ics-epochs.md
@@ -0,0 +1,2 @@
+- Initialize ICS epochs by adding a consumer validator set for every existing consumer chain.
+  ([\#3079](https://github.com/cosmos/gaia/pull/3079))
\ No newline at end of file
diff --git a/app/upgrades/v16/upgrades.go b/app/upgrades/v16/upgrades.go
index d45131f398a..dddc318f3fc 100644
--- a/app/upgrades/v16/upgrades.go
+++ b/app/upgrades/v16/upgrades.go
@@ -7,6 +7,7 @@ import (
 	ratelimittypes "github.com/Stride-Labs/ibc-rate-limiting/ratelimit/types"
 
 	icacontrollertypes "github.com/cosmos/ibc-go/v7/modules/apps/27-interchain-accounts/controller/types"
+	providerkeeper "github.com/cosmos/interchain-security/v4/x/ccv/provider/keeper"
 	providertypes "github.com/cosmos/interchain-security/v4/x/ccv/provider/types"
 
 	errorsmod "cosmossdk.io/errors"
@@ -14,6 +15,7 @@ import (
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/types/module"
+	stakingkeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
 
 	"github.com/cosmos/gaia/v16/app/keepers"
@@ -87,6 +89,11 @@ func CreateUpgradeHandler(
 		} else if addErr != nil {
 			return vm, errorsmod.Wrapf(addErr, "unable to add rate limits")
 		}
+
+		if err := InitICSEpochs(ctx, keepers.ProviderKeeper, *keepers.StakingKeeper); err != nil {
+			return vm, errorsmod.Wrapf(err, "failed initializing ICS epochs")
+		}
+
 		ctx.Logger().Info("Upgrade complete")
 		return vm, err
 	}
@@ -155,3 +162,25 @@ func AddRateLimits(ctx sdk.Context, k ratelimitkeeper.Keeper) error {
 	ctx.Logger().Info("Finished adding rate limits")
 	return nil
 }
+
+func InitICSEpochs(ctx sdk.Context, pk providerkeeper.Keeper, sk stakingkeeper.Keeper) error {
+	ctx.Logger().Info("Initializing ICS epochs...")
+
+	// get the bonded validators from the staking module
+	bondedValidators := sk.GetLastValidators(ctx)
+
+	for _, chain := range pk.GetAllConsumerChains(ctx) {
+		chainID := chain.ChainId
+		valset := pk.GetConsumerValSet(ctx, chainID)
+		if len(valset) > 0 {
+			ctx.Logger().Info("consumer chain `%s` already has the valset initialized", chainID)
+		} else {
+			// init valset for consumer with chainID
+			nextValidators := pk.ComputeNextEpochConsumerValSet(ctx, chainID, bondedValidators)
+			pk.SetConsumerValSet(ctx, chainID, nextValidators)
+		}
+	}
+
+	ctx.Logger().Info("Finished initializing ICS epochs")
+	return nil
+}
diff --git a/app/upgrades/v16/upgrades_test.go b/app/upgrades/v16/upgrades_test.go
index ec75e121bac..039117990b1 100644
--- a/app/upgrades/v16/upgrades_test.go
+++ b/app/upgrades/v16/upgrades_test.go
@@ -73,3 +73,37 @@ func TestAddRateLimits(t *testing.T) {
 		require.Equal(t, expectedRateLimit, rateLimit)
 	}
 }
+
+func TestInitICSEpochs(t *testing.T) {
+	gaiaApp := helpers.Setup(t)
+	ctx := gaiaApp.NewUncachedContext(true, tmproto.Header{})
+
+	providerKeeper := gaiaApp.ProviderKeeper
+	stakingKeeper := gaiaApp.StakingKeeper
+
+	// the setup has only one validator that is bonded
+	expBondedVals := stakingKeeper.GetAllValidators(ctx)
+	require.Equal(t, 1, len(expBondedVals))
+	expVal := expBondedVals[0]
+	expPower := expVal.ConsensusPower(stakingKeeper.PowerReduction(ctx))
+	expConsAddr, err := expVal.GetConsAddr()
+	require.NoError(t, err)
+	expConsumerPublicKey, err := expVal.TmConsPublicKey()
+	require.NoError(t, err)
+
+	providerKeeper.SetConsumerClientId(ctx, "chainID-0", "clientID-0")
+	providerKeeper.SetConsumerClientId(ctx, "chainID-1", "clientID-1")
+
+	err = v16.InitICSEpochs(ctx, providerKeeper, *stakingKeeper)
+	require.NoError(t, err)
+
+	for _, chain := range providerKeeper.GetAllConsumerChains(ctx) {
+		chainID := chain.ChainId
+		valset := providerKeeper.GetConsumerValSet(ctx, chainID)
+		require.Equal(t, 1, len(valset))
+		val := valset[0]
+		require.Equal(t, expPower, val.Power)
+		require.Equal(t, expConsAddr.Bytes(), val.ProviderConsAddr)
+		require.Equal(t, expConsumerPublicKey, *val.ConsumerPublicKey)
+	}
+}