diff --git a/CHANGELOG.md b/CHANGELOG.md
index cb072b352e..abbf784b54 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,7 @@
 * [#1617](https://github.com/crypto-org-chain/cronos/pull/1617) Fix unsuppored sign mode SIGN_MODE_TEXTUAL for bank transfer.
 * [#1621](https://github.com/crypto-org-chain/cronos/pull/1621), [1630](https://github.com/crypto-org-chain/cronos/pull/1630) Update ethermint to the fix of broken opBlockhash and tx validation.
 * [#1623](https://github.com/crypto-org-chain/cronos/pull/1623) Ensure expedited related gov params pass the basic validation.
+* [#1633](https://github.com/crypto-org-chain/cronos/pull/1633) Align acknowledgement with underlying_app_success when ack packet does not succeed.
 * [#1638](https://github.com/crypto-org-chain/cronos/pull/1638) sync x/tx bug fixes.
 
 *Sep 13, 2024*
diff --git a/integration_tests/test_ica_precompile.py b/integration_tests/test_ica_precompile.py
index bd88dae6dd..d3ddba1078 100644
--- a/integration_tests/test_ica_precompile.py
+++ b/integration_tests/test_ica_precompile.py
@@ -253,7 +253,6 @@ def test_sc_call(ibc, order):
         signer=signer,
         contract_addr=contract_addr,
     )
-    balance = funds_ica(cli_host, ica_address, signer=signer)
     assert tcontract.caller.getAccount() == addr
     assert (
         tcontract.functions.callQueryAccount(connid, contract_addr).call()
@@ -307,6 +306,7 @@ def submit_msgs_ro(func, str):
         expected_seq,
         contract.events.SubmitMsgsResult,
         channel_id,
+        need_wait=False,
         signer=signer,
     )
     submit_msgs_ro(tcontract.functions.delegateSubmitMsgs, str)
@@ -315,6 +315,27 @@ def submit_msgs_ro(func, str):
     wait_for_status_change(tcontract, channel_id, last_seq)
     status = tcontract.caller.getStatus(channel_id, last_seq)
     assert expected_seq == last_seq
+    assert status == Status.FAIL
+    wait_for_packet_log(start, packet_event, channel_id, last_seq, status)
+
+    expected_seq += 1
+    balance = funds_ica(cli_host, ica_address, signer=signer)
+    start = w3.eth.get_block_number()
+    str, diff = submit_msgs(
+        ibc,
+        tcontract.functions.callSubmitMsgs,
+        data,
+        ica_address,
+        False,
+        expected_seq,
+        contract.events.SubmitMsgsResult,
+        channel_id,
+        signer=signer,
+    )
+    last_seq = tcontract.caller.getLastSeq()
+    wait_for_status_change(tcontract, channel_id, last_seq)
+    status = tcontract.caller.getStatus(channel_id, last_seq)
+    assert expected_seq == last_seq
     assert status == Status.SUCCESS
     wait_for_packet_log(start, packet_event, channel_id, last_seq, status)
     balance -= diff
diff --git a/x/cronos/keeper/keeper.go b/x/cronos/keeper/keeper.go
index 0a53d1d2d2..83693eae5a 100644
--- a/x/cronos/keeper/keeper.go
+++ b/x/cronos/keeper/keeper.go
@@ -317,6 +317,9 @@ func (k Keeper) IBCOnAcknowledgementPacketCallback(
 	if err := k.cdc.UnmarshalJSON(acknowledgement, &ack); err != nil {
 		return err
 	}
+	if !ack.Success() {
+		return k.onPacketResult(ctx, packet, false, relayer, contractAddress, packetSenderAddress)
+	}
 	var res channeltypes.Acknowledgement
 	if err := k.cdc.UnmarshalJSON(ack.AppAcknowledgement, &res); err != nil {
 		return err