diff --git a/CHANGELOG.md b/CHANGELOG.md
index 260315e044..018c749326 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -63,6 +63,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Improvements
 
+* (x/staking) [#24391](https://github.com/cosmos/cosmos-sdk/pull/24391) Replace panics with error results; more verbose error messages
 * (x/staking) [#24354](https://github.com/cosmos/cosmos-sdk/pull/24354) Optimize validator endblock by reducing bech32 conversions, resulting in significant performance improvement
 * (client/keys) [#18950](https://github.com/cosmos/cosmos-sdk/pull/18950) Improve `<appd> keys add`, `<appd> keys import` and `<appd> keys rename` by checking name validation.
 * (client/keys) [#18703](https://github.com/cosmos/cosmos-sdk/pull/18703) Improve `<appd> keys add` and `<appd> keys show` by checking whether there are duplicate keys in the multisig case.
diff --git a/x/staking/keeper/val_state_change.go b/x/staking/keeper/val_state_change.go
index ecdc9d60ff..7761d80a2e 100644
--- a/x/staking/keeper/val_state_change.go
+++ b/x/staking/keeper/val_state_change.go
@@ -3,6 +3,7 @@ package keeper
 import (
 	"bytes"
 	"context"
+	"errors"
 	"fmt"
 	"sort"
 
@@ -142,13 +143,13 @@ func (k Keeper) ApplyAndReturnValidatorSetUpdates(ctx context.Context) (updates
 	// (see LastValidatorPowerKey).
 	last, err := k.getLastValidatorsByAddr(ctx)
 	if err != nil {
-		return nil, err
+		return nil, fmt.Errorf("failed to get last validator set: %w", err)
 	}
 
 	// Iterate over validators, highest power to lowest.
 	iterator, err := k.ValidatorsPowerStoreIterator(ctx)
 	if err != nil {
-		return nil, err
+		return nil, fmt.Errorf("failed to get validators power store iterator: %w", err)
 	}
 	defer iterator.Close()
 
@@ -156,10 +157,13 @@ func (k Keeper) ApplyAndReturnValidatorSetUpdates(ctx context.Context) (updates
 		// everything that is iterated in this loop is becoming or already a
 		// part of the bonded validator set
 		valAddr := sdk.ValAddress(iterator.Value())
-		validator := k.mustGetValidator(ctx, valAddr)
+		validator, err := k.GetValidator(ctx, valAddr)
+		if err != nil {
+			return nil, fmt.Errorf("validator record not found for address: %X", valAddr)
+		}
 
 		if validator.Jailed {
-			panic("should never retrieve a jailed validator from the power store")
+			return nil, errors.New("should never retrieve a jailed validator from the power store")
 		}
 
 		// if we get to a zero-power validator (which we don't bond),
@@ -185,7 +189,7 @@ func (k Keeper) ApplyAndReturnValidatorSetUpdates(ctx context.Context) (updates
 		case validator.IsBonded():
 			// no state change
 		default:
-			panic("unexpected validator status")
+			return nil, errors.New("unexpected validator status")
 		}
 
 		valAddrStr := string(valAddr)
@@ -214,14 +218,17 @@ func (k Keeper) ApplyAndReturnValidatorSetUpdates(ctx context.Context) (updates
 	}
 
 	for _, valAddrBytes := range noLongerBonded {
-		validator := k.mustGetValidator(ctx, sdk.ValAddress(valAddrBytes))
+		validator, err := k.GetValidator(ctx, sdk.ValAddress(valAddrBytes))
+		if err != nil {
+			return nil, fmt.Errorf("validator record not found for address: %X", sdk.ValAddress(valAddrBytes))
+		}
 		validator, err = k.bondedToUnbonding(ctx, validator)
 		if err != nil {
 			return nil, err
 		}
 		str, err := k.validatorAddressCodec.StringToBytes(validator.GetOperator())
 		if err != nil {
-			return nil, err
+			return nil, fmt.Errorf("failed to get validator operator address: %w", err)
 		}
 		amtFromBondedToNotBonded = amtFromBondedToNotBonded.Add(validator.GetTokens())
 		if err = k.DeleteLastValidatorPower(ctx, str); err != nil {
@@ -269,7 +276,7 @@ func (k Keeper) ApplyAndReturnValidatorSetUpdates(ctx context.Context) (updates
 
 func (k Keeper) bondedToUnbonding(ctx context.Context, validator types.Validator) (types.Validator, error) {
 	if !validator.IsBonded() {
-		panic(fmt.Sprintf("bad state transition bondedToUnbonding, validator: %v\n", validator))
+		return types.Validator{}, fmt.Errorf("bad state transition bondedToUnbonding, validator: %v", validator)
 	}
 
 	return k.BeginUnbondingValidator(ctx, validator)
@@ -277,7 +284,7 @@ func (k Keeper) bondedToUnbonding(ctx context.Context, validator types.Validator
 
 func (k Keeper) unbondingToBonded(ctx context.Context, validator types.Validator) (types.Validator, error) {
 	if !validator.IsUnbonding() {
-		panic(fmt.Sprintf("bad state transition unbondingToBonded, validator: %v\n", validator))
+		return types.Validator{}, fmt.Errorf("bad state transition unbondingToBonded, validator: %v", validator)
 	}
 
 	return k.bondValidator(ctx, validator)
@@ -285,7 +292,7 @@ func (k Keeper) unbondingToBonded(ctx context.Context, validator types.Validator
 
 func (k Keeper) unbondedToBonded(ctx context.Context, validator types.Validator) (types.Validator, error) {
 	if !validator.IsUnbonded() {
-		panic(fmt.Sprintf("bad state transition unbondedToBonded, validator: %v\n", validator))
+		return types.Validator{}, fmt.Errorf("bad state transition unbondedToBonded, validator: %v", validator)
 	}
 
 	return k.bondValidator(ctx, validator)
@@ -332,63 +339,63 @@ func (k Keeper) unjailValidator(ctx context.Context, validator types.Validator)
 func (k Keeper) bondValidator(ctx context.Context, validator types.Validator) (types.Validator, error) {
 	// delete the validator by power index, as the key will change
 	if err := k.DeleteValidatorByPowerIndex(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	validator = validator.UpdateStatus(types.Bonded)
 
 	// save the now bonded validator record to the two referenced stores
 	if err := k.SetValidator(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	if err := k.SetValidatorByPowerIndex(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	// delete from queue if present
 	if err := k.DeleteValidatorQueue(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	// trigger hook
 	consAddr, err := validator.GetConsAddr()
 	if err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	str, err := k.validatorAddressCodec.StringToBytes(validator.GetOperator())
 	if err != nil {
-		return validator, err
+		return types.Validator{}, fmt.Errorf("failed to get validator operator address: %w", err)
 	}
 
 	if err := k.Hooks().AfterValidatorBonded(ctx, consAddr, str); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
-	return validator, err
+	return validator, nil
 }
 
 // BeginUnbondingValidator performs all the store operations for when a validator begins unbonding
 func (k Keeper) BeginUnbondingValidator(ctx context.Context, validator types.Validator) (types.Validator, error) {
 	params, err := k.GetParams(ctx)
 	if err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	// delete the validator by power index, as the key will change
 	if err = k.DeleteValidatorByPowerIndex(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	// sanity check
 	if validator.Status != types.Bonded {
-		panic(fmt.Sprintf("should not already be unbonded or unbonding, validator: %v\n", validator))
+		return types.Validator{}, fmt.Errorf("should not already be unbonded or unbonding, validator: %v", validator)
 	}
 
 	id, err := k.IncrementUnbondingID(ctx)
 	if err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	validator = validator.UpdateStatus(types.Unbonding)
@@ -402,39 +409,39 @@ func (k Keeper) BeginUnbondingValidator(ctx context.Context, validator types.Val
 
 	// save the now unbonded validator record and power index
 	if err = k.SetValidator(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	if err = k.SetValidatorByPowerIndex(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	// Adds to unbonding validator queue
 	if err = k.InsertUnbondingValidatorQueue(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	// trigger hook
 	consAddr, err := validator.GetConsAddr()
 	if err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	str, err := k.validatorAddressCodec.StringToBytes(validator.GetOperator())
 	if err != nil {
-		return validator, err
+		return types.Validator{}, fmt.Errorf("failed to get validator operator address: %w", err)
 	}
 
 	if err := k.Hooks().AfterValidatorBeginUnbonding(ctx, consAddr, str); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	if err := k.SetValidatorByUnbondingID(ctx, validator, id); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	if err := k.Hooks().AfterUnbondingInitiated(ctx, id); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	return validator, nil
@@ -444,7 +451,7 @@ func (k Keeper) BeginUnbondingValidator(ctx context.Context, validator types.Val
 func (k Keeper) completeUnbondingValidator(ctx context.Context, validator types.Validator) (types.Validator, error) {
 	validator = validator.UpdateStatus(types.Unbonded)
 	if err := k.SetValidator(ctx, validator); err != nil {
-		return validator, err
+		return types.Validator{}, err
 	}
 
 	return validator, nil