diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6dd5570ec..bee67caff 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -47,6 +47,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* [\#11197](https://github.com/cosmos/cosmos-sdk/pull/11197) Signing with multisig now works with multisig address which is not in the keyring. 
 * (client) [\#11283](https://github.com/cosmos/cosmos-sdk/issues/11283) Support multiple keys for tx simulation and setting automatic gas for txs.
 * (store) [\#11177](https://github.com/cosmos/cosmos-sdk/pull/11177) Update the prune `everything` strategy to store the last two heights.
 * (store) [\#11117](https://github.com/cosmos/cosmos-sdk/pull/11117) Fix data race in store trace component
diff --git a/x/auth/client/cli/tx_sign.go b/x/auth/client/cli/tx_sign.go
index 34483f9c9..670a5f986 100644
--- a/x/auth/client/cli/tx_sign.go
+++ b/x/auth/client/cli/tx_sign.go
@@ -9,6 +9,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/client/flags"
 	"github.com/cosmos/cosmos-sdk/client/tx"
+	sdk "github.com/cosmos/cosmos-sdk/types"
 	authclient "github.com/cosmos/cosmos-sdk/x/auth/client"
 )
 
@@ -234,9 +235,13 @@ func makeSignCmd() func(cmd *cobra.Command, args []string) error {
 
 		overwrite, _ := f.GetBool(flagOverwrite)
 		if multisig != "" {
-			multisigAddr, _, _, err := client.GetFromFields(txFactory.Keybase(), multisig, clientCtx.GenerateOnly)
+			multisigAddr, err := sdk.AccAddressFromBech32(multisig)
 			if err != nil {
-				return fmt.Errorf("error getting account from keybase: %w", err)
+				// Bech32 decode error, maybe it's a name, we try to fetch from keyring
+				multisigAddr, _, _, err = client.GetFromFields(txFactory.Keybase(), multisig, clientCtx.GenerateOnly)
+				if err != nil {
+					return fmt.Errorf("error getting account from keybase: %w", err)
+				}
 			}
 			err = authclient.SignTxWithSignerAddress(
 				txF, clientCtx, multisigAddr, fromName, txBuilder, clientCtx.Offline, overwrite)
diff --git a/x/auth/client/testutil/suite.go b/x/auth/client/testutil/suite.go
index 626e0130f..07b70900c 100644
--- a/x/auth/client/testutil/suite.go
+++ b/x/auth/client/testutil/suite.go
@@ -811,6 +811,47 @@ func (s *IntegrationTestSuite) TestCLIMultisignSortSignatures() {
 	s.Require().NoError(s.network.WaitForNextBlock())
 }
 
+func (s *IntegrationTestSuite) TestSignWithMultisig() {
+	val1 := s.network.Validators[0]
+
+	// Generate a account for signing.
+	account1, err := val1.ClientCtx.Keyring.Key("newAccount1")
+	s.Require().NoError(err)
+
+	addr1 := account1.GetAddress()
+	s.Require().NoError(err)
+
+	// Create an address that is not in the keyring, will be used to simulate `--multisig`
+	multisig := "cosmos1hd6fsrvnz6qkp87s3u86ludegq97agxsdkwzyh"
+	multisigAddr, err := sdk.AccAddressFromBech32(multisig)
+	s.Require().NoError(err)
+
+	// Generate a transaction for testing --multisig with an address not in the keyring.
+	multisigTx, err := bankcli.MsgSendExec(
+		val1.ClientCtx,
+		val1.Address,
+		val1.Address,
+		sdk.NewCoins(
+			sdk.NewInt64Coin(s.cfg.BondDenom, 5),
+		),
+		fmt.Sprintf("--%s=true", flags.FlagSkipConfirmation),
+		fmt.Sprintf("--%s=%s", flags.FlagBroadcastMode, flags.BroadcastSync),
+		fmt.Sprintf("--%s=%s", flags.FlagFees, sdk.NewCoins(sdk.NewCoin(s.cfg.BondDenom, sdk.NewInt(10))).String()),
+		fmt.Sprintf("--%s=true", flags.FlagGenerateOnly),
+	)
+	s.Require().NoError(err)
+
+	// Save multi tx to file
+	multiGeneratedTx2File := testutil.WriteToNewTempFile(s.T(), multisigTx.String())
+
+	// Sign using multisig. We're signing a tx on behalf of the multisig address,
+	// even though the tx signer is NOT the multisig address. This is fine though,
+	// as the main point of this test is to test the `--multisig` flag with an address
+	// that is not in the keyring.
+	_, err = TxSignExec(val1.ClientCtx, addr1, multiGeneratedTx2File.Name(), "--multisig", multisigAddr.String())
+	s.Require().Contains(err.Error(), "tx intended signer does not match the given signer")
+}
+
 func (s *IntegrationTestSuite) TestCLIMultisign() {
 	val1 := s.network.Validators[0]