diff --git a/x/auth/CHANGELOG.md b/x/auth/CHANGELOG.md
index 6fe1a31ff4..594f89f872 100644
--- a/x/auth/CHANGELOG.md
+++ b/x/auth/CHANGELOG.md
@@ -63,4 +63,5 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * [#19148](https://github.com/cosmos/cosmos-sdk/pull/19148) Checks the consumed gas for verifying a multisig pubKey signature during simulation.
 * [#19239](https://github.com/cosmos/cosmos-sdk/pull/19239) Sets from flag in multi-sign command to avoid no key name provided error.
 * [#19099](https://github.com/cosmos/cosmos-sdk/pull/19099) `verifyIsOnCurve` now checks if we are simulating to avoid malformed public key error.
-* [#20323](https://github.com/cosmos/cosmos-sdk/pull/20323) Ignore undecodable txs in GetBlocksWithTxs.
\ No newline at end of file
+* [#20323](https://github.com/cosmos/cosmos-sdk/pull/20323) Ignore undecodable txs in GetBlocksWithTxs.
+* [#20963](https://github.com/cosmos/cosmos-sdk/pull/20963) UseGrantedFees used to return error with raw addresses. Now it uses addresses in string format.
\ No newline at end of file
diff --git a/x/auth/ante/fee.go b/x/auth/ante/fee.go
index 21b5300fd5..298fae30a4 100644
--- a/x/auth/ante/fee.go
+++ b/x/auth/ante/fee.go
@@ -98,7 +98,15 @@ func (dfd DeductFeeDecorator) checkDeductFee(ctx sdk.Context, sdkTx sdk.Tx, fee
 		} else if !bytes.Equal(feeGranterAddr, feePayer) {
 			err := dfd.feegrantKeeper.UseGrantedFees(ctx, feeGranterAddr, feePayer, fee, sdkTx.GetMsgs())
 			if err != nil {
-				return errorsmod.Wrapf(err, "%s does not allow to pay fees for %s", feeGranter, feePayer)
+				granterAddr, acErr := dfd.accountKeeper.AddressCodec().BytesToString(feeGranter)
+				if acErr != nil {
+					return errorsmod.Wrapf(err, "%s, feeGranter does not allow to pay fees", acErr.Error())
+				}
+				payerAddr, acErr := dfd.accountKeeper.AddressCodec().BytesToString(feePayer)
+				if acErr != nil {
+					return errorsmod.Wrapf(err, "%s, feeGranter does not allow to pay fees", acErr.Error())
+				}
+				return errorsmod.Wrapf(err, "%s does not allow to pay fees for %s", granterAddr, payerAddr)
 			}
 		}