diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6b8c45629..5ce1e54c0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -82,6 +82,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Improvements
 
+* (cli) [\#9856](https://github.com/cosmos/cosmos-sdk/pull/9856) Overwrite `--sequence` and `--account-number` flags with default flag values when used with `offline=false` in `sign-batch` command.
 * (cli) [\#9593](https://github.com/cosmos/cosmos-sdk/pull/9593) Check if chain-id is blank before verifying signatures in multisign and error.
 * (cli) [\#9717](https://github.com/cosmos/cosmos-sdk/pull/9717) Added CLI flag `--output json/text` to `tx` cli commands.
 
diff --git a/x/auth/client/cli/tx_sign.go b/x/auth/client/cli/tx_sign.go
index 34483f9c9..08abeaa05 100644
--- a/x/auth/client/cli/tx_sign.go
+++ b/x/auth/client/cli/tx_sign.go
@@ -28,7 +28,7 @@ func GetSignBatchCommand() *cobra.Command {
 		Long: `Sign batch files of transactions generated with --generate-only.
 The command processes list of transactions from file (one StdTx each line), generate
 signed transactions or signatures and print their JSON encoding, delimited by '\n'.
-As the signatures are generated, the command updates the account sequence number accordingly.
+As the signatures are generated, the command updates the account and sequence number accordingly.
 
 If the --signature-only flag is set, it will output the signature parts only.
 
@@ -38,6 +38,9 @@ it is required to set such parameters manually. Note, invalid values will cause
 the transaction to fail. The sequence will be incremented automatically for each
 transaction that is signed.
 
+If --account-number or --sequence flag is used when offline=false, they are ignored and 
+overwritten by the default flag values.
+
 The --multisig=<multisig_key> flag generates a signature on behalf of a multisig
 account key. It implies --signature-only.
 `,
@@ -89,6 +92,10 @@ func makeSignBatchCmd() func(cmd *cobra.Command, args []string) error {
 		}
 		scanner := authclient.NewBatchScanner(txCfg, infile)
 
+		if !clientCtx.Offline {
+			txFactory = txFactory.WithAccountNumber(0).WithSequence(0)
+		}
+
 		for sequence := txFactory.Sequence(); scanner.Scan(); sequence++ {
 			unsignedStdTx := scanner.Tx()
 			txFactory = txFactory.WithSequence(sequence)
diff --git a/x/auth/client/testutil/suite.go b/x/auth/client/testutil/suite.go
index fd4a472f8..e744916b4 100644
--- a/x/auth/client/testutil/suite.go
+++ b/x/auth/client/testutil/suite.go
@@ -126,8 +126,21 @@ func (s *IntegrationTestSuite) TestCLISignBatch() {
 	_, err = TxSignBatchExec(val.ClientCtx, val.Address, outputFile.Name(), fmt.Sprintf("--%s=%s", flags.FlagChainID, val.ClientCtx.ChainID), "--offline")
 	s.Require().EqualError(err, "required flag(s) \"account-number\", \"sequence\" not set")
 
+	// sign-batch file - offline and sequence is set but account-number is not set
+	_, err = TxSignBatchExec(val.ClientCtx, val.Address, outputFile.Name(), fmt.Sprintf("--%s=%s", flags.FlagChainID, val.ClientCtx.ChainID), fmt.Sprintf("--%s=%s", flags.FlagSequence, "1"), "--offline")
+	s.Require().EqualError(err, "required flag(s) \"account-number\" not set")
+
+	// sign-batch file - offline and account-number is set but sequence is not set
+	_, err = TxSignBatchExec(val.ClientCtx, val.Address, outputFile.Name(), fmt.Sprintf("--%s=%s", flags.FlagChainID, val.ClientCtx.ChainID), fmt.Sprintf("--%s=%s", flags.FlagAccountNumber, "1"), "--offline")
+	s.Require().EqualError(err, "required flag(s) \"sequence\" not set")
+
+	// sign-batch file - sequence and account-number are set when offline is false
+	res, err := TxSignBatchExec(val.ClientCtx, val.Address, outputFile.Name(), fmt.Sprintf("--%s=%s", flags.FlagChainID, val.ClientCtx.ChainID), fmt.Sprintf("--%s=%s", flags.FlagSequence, "1"), fmt.Sprintf("--%s=%s", flags.FlagAccountNumber, "1"))
+	s.Require().NoError(err)
+	s.Require().Equal(3, len(strings.Split(strings.Trim(res.String(), "\n"), "\n")))
+
 	// sign-batch file
-	res, err := TxSignBatchExec(val.ClientCtx, val.Address, outputFile.Name(), fmt.Sprintf("--%s=%s", flags.FlagChainID, val.ClientCtx.ChainID))
+	res, err = TxSignBatchExec(val.ClientCtx, val.Address, outputFile.Name(), fmt.Sprintf("--%s=%s", flags.FlagChainID, val.ClientCtx.ChainID))
 	s.Require().NoError(err)
 	s.Require().Equal(3, len(strings.Split(strings.Trim(res.String(), "\n"), "\n")))