diff --git a/CHANGELOG.md b/CHANGELOG.md
index b15bcfaf9..8fd1b13d1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,10 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ## [Unreleased]
 
+### Bug Fixes
+
+* (client) [#10226](https://github.com/cosmos/cosmos-sdk/pull/10226) Fix --home flag parsing. 
+
 ## [v0.44.1](https://github.com/cosmos/cosmos-sdk/releases/tag/v0.44.1) - 2021-09-29
 
 ### Improvements
diff --git a/client/cmd.go b/client/cmd.go
index c2e3ff8a4..0e401a925 100644
--- a/client/cmd.go
+++ b/client/cmd.go
@@ -93,6 +93,11 @@ func ReadPersistentCommandFlags(clientCtx Context, flagSet *pflag.FlagSet) (Cont
 		clientCtx = clientCtx.WithOutputFormat(output)
 	}
 
+	if clientCtx.HomeDir == "" || flagSet.Changed(flags.FlagHome) {
+		homeDir, _ := flagSet.GetString(flags.FlagHome)
+		clientCtx = clientCtx.WithHomeDir(homeDir)
+	}
+
 	if !clientCtx.Simulate || flagSet.Changed(flags.FlagDryRun) {
 		dryRun, _ := flagSet.GetBool(flags.FlagDryRun)
 		clientCtx = clientCtx.WithSimulation(dryRun)
@@ -249,17 +254,6 @@ func readTxCommandFlags(clientCtx Context, flagSet *pflag.FlagSet) (Context, err
 	return clientCtx, nil
 }
 
-// ReadHomeFlag checks if home flag is changed. If this is a case, we update
-// HomeDir field of Client Context.
-func ReadHomeFlag(clientCtx Context, cmd *cobra.Command) Context {
-	if cmd.Flags().Changed(flags.FlagHome) {
-		rootDir, _ := cmd.Flags().GetString(flags.FlagHome)
-		clientCtx = clientCtx.WithHomeDir(rootDir)
-	}
-
-	return clientCtx
-}
-
 // GetClientQueryContext returns a Context from a command with fields set based on flags
 // defined in AddQueryFlagsToCmd. An error is returned if any flag query fails.
 //
diff --git a/client/keys/list_test.go b/client/keys/list_test.go
index 17f8dd8e4..a9d5462cc 100644
--- a/client/keys/list_test.go
+++ b/client/keys/list_test.go
@@ -57,7 +57,6 @@ func Test_runListCmd(t *testing.T) {
 			cmd.SetArgs([]string{
 				fmt.Sprintf("--%s=%s", flags.FlagHome, tt.kbDir),
 				fmt.Sprintf("--%s=false", flagListNames),
-				fmt.Sprintf("--%s=%s", flags.FlagKeyringBackend, keyring.BackendTest),
 			})
 
 			if err := cmd.ExecuteContext(ctx); (err != nil) != tt.wantErr {
@@ -67,7 +66,6 @@ func Test_runListCmd(t *testing.T) {
 			cmd.SetArgs([]string{
 				fmt.Sprintf("--%s=%s", flags.FlagHome, tt.kbDir),
 				fmt.Sprintf("--%s=true", flagListNames),
-				fmt.Sprintf("--%s=%s", flags.FlagKeyringBackend, keyring.BackendTest),
 			})
 
 			if err := cmd.ExecuteContext(ctx); (err != nil) != tt.wantErr {
diff --git a/simapp/simd/cmd/root.go b/simapp/simd/cmd/root.go
index b33a660c8..679723c0b 100644
--- a/simapp/simd/cmd/root.go
+++ b/simapp/simd/cmd/root.go
@@ -56,9 +56,12 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 			cmd.SetOut(cmd.OutOrStdout())
 			cmd.SetErr(cmd.ErrOrStderr())
 
-			initClientCtx = client.ReadHomeFlag(initClientCtx, cmd)
+			initClientCtx, err := client.ReadPersistentCommandFlags(initClientCtx, cmd.Flags())
+			if err != nil {
+				return err
+			}
 
-			initClientCtx, err := config.ReadFromClientConfig(initClientCtx)
+			initClientCtx, err = config.ReadFromClientConfig(initClientCtx)
 			if err != nil {
 				return err
 			}
diff --git a/x/genutil/client/cli/init.go b/x/genutil/client/cli/init.go
index dcc6f67b0..5d26085aa 100644
--- a/x/genutil/client/cli/init.go
+++ b/x/genutil/client/cli/init.go
@@ -76,8 +76,6 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 
 			serverCtx := server.GetServerContextFromCmd(cmd)
 			config := serverCtx.Config
-
-			clientCtx = client.ReadHomeFlag(clientCtx, cmd)
 			config.SetRoot(clientCtx.HomeDir)
 
 			chainID, _ := cmd.Flags().GetString(flags.FlagChainID)