diff --git a/CHANGELOG.md b/CHANGELOG.md
index 814cb126ab..6443a1fb61 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -41,6 +41,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 ### Improvements
 
 * (x/group, x/gov) [#17109](https://github.com/cosmos/cosmos-sdk/pull/17109) Let proposal summary be 40x longer than metadata limit.
+* (version) [#17096](https://github.com/cosmos/cosmos-sdk/pull/17096) Improve `getSDKVersion()` to handle module replacements.
 
 ### CLI Breaking Changes
 
diff --git a/version/version.go b/version/version.go
index a41834e336..502185ad9a 100644
--- a/version/version.go
+++ b/version/version.go
@@ -44,7 +44,11 @@ func getSDKVersion() string {
 	var sdkVersion string
 	for _, dep := range deps.Deps {
 		if dep.Path == "github.com/cosmos/cosmos-sdk" {
-			sdkVersion = dep.Version
+			if dep.Replace != nil && dep.Replace.Version != "(devel)" {
+				sdkVersion = dep.Replace.Version
+			} else {
+				sdkVersion = dep.Version
+			}
 		}
 	}