diff --git a/modules/apps/29-fee/ibc_module.go b/modules/apps/29-fee/ibc_module.go
index bdb3bcadabd..89d27b9f86f 100644
--- a/modules/apps/29-fee/ibc_module.go
+++ b/modules/apps/29-fee/ibc_module.go
@@ -105,6 +105,7 @@ func (im IBCModule) OnChanOpenAck(
 	ctx sdk.Context,
 	portID,
 	channelID string,
+	counterpartyChannelID string,
 	counterpartyVersion string,
 ) error {
 	// If handshake was initialized with fee enabled it must complete with fee enabled.
@@ -120,11 +121,11 @@ func (im IBCModule) OnChanOpenAck(
 		}
 
 		// call underlying app's OnChanOpenAck callback with the counterparty app version.
-		return im.app.OnChanOpenAck(ctx, portID, channelID, versionMetadata.AppVersion)
+		return im.app.OnChanOpenAck(ctx, portID, channelID, counterpartyChannelID, versionMetadata.AppVersion)
 	}
 
 	// call underlying app's OnChanOpenAck callback with the counterparty app version.
-	return im.app.OnChanOpenAck(ctx, portID, channelID, counterpartyVersion)
+	return im.app.OnChanOpenAck(ctx, portID, channelID, counterpartyChannelID, counterpartyVersion)
 }
 
 // OnChanOpenConfirm implements the IBCModule interface
diff --git a/modules/apps/29-fee/ibc_module_test.go b/modules/apps/29-fee/ibc_module_test.go
index 6e0202a887e..b520231a4f2 100644
--- a/modules/apps/29-fee/ibc_module_test.go
+++ b/modules/apps/29-fee/ibc_module_test.go
@@ -261,7 +261,7 @@ func (suite *FeeTestSuite) TestOnChanOpenAck() {
 
 			// setup mock callback
 			suite.chainA.GetSimApp().FeeMockModule.IBCApp.OnChanOpenAck = func(
-				ctx sdk.Context, portID, channelID string, counterpartyVersion string,
+				ctx sdk.Context, portID, channelID string, counterpartyChannelID string, counterpartyVersion string,
 			) error {
 				if counterpartyVersion != ibcmock.Version {
 					return fmt.Errorf("incorrect mock version")
@@ -281,7 +281,7 @@ func (suite *FeeTestSuite) TestOnChanOpenAck() {
 			cbs, ok := suite.chainA.App.GetIBCKeeper().Router.GetRoute(module)
 			suite.Require().True(ok)
 
-			err = cbs.OnChanOpenAck(suite.chainA.GetContext(), suite.path.EndpointA.ChannelConfig.PortID, suite.path.EndpointA.ChannelID, tc.cpVersion)
+			err = cbs.OnChanOpenAck(suite.chainA.GetContext(), suite.path.EndpointA.ChannelConfig.PortID, suite.path.EndpointA.ChannelID, suite.path.EndpointA.Counterparty.ChannelID, tc.cpVersion)
 			if tc.expPass {
 				suite.Require().NoError(err, "unexpected error for case: %s", tc.name)
 			} else {