diff --git a/modules/core/04-channel/keeper/timeout_test.go b/modules/core/04-channel/keeper/timeout_test.go
index 1565bc5adf3..e6dc91c18de 100644
--- a/modules/core/04-channel/keeper/timeout_test.go
+++ b/modules/core/04-channel/keeper/timeout_test.go
@@ -318,7 +318,7 @@ func (suite *KeeperTestSuite) TestTimeoutExecuted() {
 				channel.State = types.FLUSHING
 				path.EndpointA.SetChannel(channel)
 				path.EndpointA.SetChannelCounterpartyUpgrade(types.Upgrade{
-					Timeout: types.DefaultTimeout,
+					Timeout: types.NewTimeout(clienttypes.ZeroHeight(), uint64(suite.chainA.GetContext().BlockTime().UnixNano())+types.DefaultTimeout.Timestamp),
 				})
 			},
 			func(packetCommitment []byte, err error) {
@@ -422,10 +422,10 @@ func (suite *KeeperTestSuite) TestTimeoutExecuted() {
 				path.EndpointA.SetChannel(channel)
 				path.EndpointA.SetChannelUpgrade(types.Upgrade{
 					Fields:  path.EndpointA.GetProposedUpgrade().Fields,
-					Timeout: types.DefaultTimeout,
+					Timeout: types.NewTimeout(clienttypes.ZeroHeight(), uint64(suite.chainA.GetContext().BlockTime().UnixNano())+types.DefaultTimeout.Timestamp),
 				})
 				path.EndpointA.SetChannelCounterpartyUpgrade(types.Upgrade{
-					Timeout: types.DefaultTimeout,
+					Timeout: types.NewTimeout(clienttypes.ZeroHeight(), uint64(suite.chainB.GetContext().BlockTime().UnixNano())+types.DefaultTimeout.Timestamp),
 				})
 			},
 			func(packetCommitment []byte, err error) {
diff --git a/modules/core/04-channel/keeper/upgrade.go b/modules/core/04-channel/keeper/upgrade.go
index 3a8bc80f123..06b434e1d5c 100644
--- a/modules/core/04-channel/keeper/upgrade.go
+++ b/modules/core/04-channel/keeper/upgrade.go
@@ -769,19 +769,16 @@ func (k Keeper) startFlushing(ctx sdk.Context, portID, channelID string, upgrade
 	}
 
 	upgrade.LatestSequenceSend = nextSequenceSend - 1
-	upgrade.Timeout = k.getUpgradeTimeout(ctx)
+	upgrade.Timeout = k.getAbsoluteUpgradeTimeout(ctx)
 	k.SetUpgrade(ctx, portID, channelID, *upgrade)
 
 	return nil
 }
 
-// getUpgradeTimeout returns the absolute timeout for the given upgrade.
-func (k Keeper) getUpgradeTimeout(ctx sdk.Context) types.Timeout {
-	// relativeTimeout := k.GetParams(ctx).UpgradeTimeout
-	// absoluteTimeoutHeight := clienttypes.NewHeight(clienttypes.ParseChainID(ctx.ChainID()), uint64(ctx.BlockHeight())+relativeTimeout.Height.RevisionHeight)
-	// absoluteTimeoutTimestamp := uint64(ctx.BlockTime().UnixNano()) + relativeTimeout.Timestamp
-	// return types.NewTimeout(absoluteTimeoutHeight, absoluteTimeoutTimestamp)
-	return k.GetParams(ctx).UpgradeTimeout
+// getAbsoluteUpgradeTimeout returns the absolute timeout for the given upgrade.
+func (k Keeper) getAbsoluteUpgradeTimeout(ctx sdk.Context) types.Timeout {
+	upgradeTimeout := k.GetParams(ctx).UpgradeTimeout
+	return types.NewTimeout(clienttypes.ZeroHeight(), uint64(ctx.BlockTime().UnixNano())+upgradeTimeout.Timestamp)
 }
 
 // syncUpgradeSequence ensures current upgrade handshake only continues if both channels are using the same upgrade sequence,
diff --git a/modules/core/04-channel/keeper/upgrade_test.go b/modules/core/04-channel/keeper/upgrade_test.go
index bcdd7daaa30..5774ac48814 100644
--- a/modules/core/04-channel/keeper/upgrade_test.go
+++ b/modules/core/04-channel/keeper/upgrade_test.go
@@ -1764,7 +1764,9 @@ func (suite *KeeperTestSuite) TestStartFlush() {
 				suite.Require().Equal(types.FLUSHING, channel.State)
 				suite.Require().Equal(nextSequenceSend-1, upgrade.LatestSequenceSend)
 
-				suite.Require().Equal(types.DefaultTimeout, upgrade.Timeout)
+				expectedTimeoutTimestamp := types.DefaultTimeout.Timestamp + uint64(suite.chainB.GetContext().BlockTime().UnixNano())
+				suite.Require().Equal(expectedTimeoutTimestamp, upgrade.Timeout.Timestamp)
+				suite.Require().Equal(clienttypes.ZeroHeight(), upgrade.Timeout.Height, "only timestamp should be set")
 				suite.Require().NoError(err)
 			}
 		})
diff --git a/modules/core/04-channel/types/params.go b/modules/core/04-channel/types/params.go
index cdd4c0230ca..16afc1676ad 100644
--- a/modules/core/04-channel/types/params.go
+++ b/modules/core/04-channel/types/params.go
@@ -7,9 +7,9 @@ import (
 	clienttypes "github.com/cosmos/ibc-go/v7/modules/core/02-client/types"
 )
 
-// TODO: determine sane default value for upgrade timeout. and make this relative.
+// TODO: determine sane default value for upgrade timeout.
 
-var DefaultTimeout = NewTimeout(clienttypes.ZeroHeight(), uint64(time.Now().Add(time.Hour).UnixNano()))
+var DefaultTimeout = NewTimeout(clienttypes.ZeroHeight(), uint64(time.Hour.Nanoseconds()))
 
 // NewParams creates a new parameter configuration for the channel submodule
 func NewParams(upgradeTimeout Timeout) Params {