diff --git a/CHANGELOG.md b/CHANGELOG.md
index 625212007..b565059d3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -222,6 +222,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* [#11969](https://github.com/cosmos/cosmos-sdk/pull/11969) Fix the panic error in `x/upgrade` when `AppVersion` is not set.
 * (tests) [\#11940](https://github.com/cosmos/cosmos-sdk/pull/11940) Fix some client tests in the `x/gov` module
 * [\#11772](https://github.com/cosmos/cosmos-sdk/pull/11772) Limit types.Dec length to avoid overflow.
 * [\#11724](https://github.com/cosmos/cosmos-sdk/pull/11724) Fix data race issues with api.Server
diff --git a/x/upgrade/abci.go b/x/upgrade/abci.go
index f390a873d..5212cd9e2 100644
--- a/x/upgrade/abci.go
+++ b/x/upgrade/abci.go
@@ -35,7 +35,14 @@ func BeginBlocker(k keeper.Keeper, ctx sdk.Context, _ abci.RequestBeginBlock) {
 		// 3. If the plan is ready and skip upgrade height is set for current height.
 		if !found || !plan.ShouldExecute(ctx) || (plan.ShouldExecute(ctx) && k.IsSkipHeight(ctx.BlockHeight())) {
 			if lastAppliedPlan != "" && !k.HasHandler(lastAppliedPlan) {
-				panic(fmt.Sprintf("Wrong app version %d, upgrade handler is missing for %s upgrade plan", ctx.ConsensusParams().Version.AppVersion, lastAppliedPlan))
+				var appVersion uint64
+
+				cp := ctx.ConsensusParams()
+				if cp != nil && cp.Version != nil {
+					appVersion = cp.Version.AppVersion
+				}
+
+				panic(fmt.Sprintf("Wrong app version %d, upgrade handler is missing for %s upgrade plan", appVersion, lastAppliedPlan))
 			}
 		}
 	}