diff --git a/CHANGELOG.md b/CHANGELOG.md
index 64fbb955c6d8..6b1e1955717e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -45,6 +45,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Improvements
 
+* [#12589](https://github.com/cosmos/cosmos-sdk/pull/12589) Allow zero gas in simulation mode.
 * [#12576](https://github.com/cosmos/cosmos-sdk/pull/12576) Remove dependency on cosmos/keyring and upgrade to 99designs/keyring v1.2.1
 * [#12089](https://github.com/cosmos/cosmos-sdk/pull/12089) Mark the `TipDecorator` as beta, don't include it in simapp by default.
 * [#12153](https://github.com/cosmos/cosmos-sdk/pull/12153) Add a new `NewSimulationManagerFromAppModules` constructor, to simplify simulation wiring.
diff --git a/x/auth/ante/fee.go b/x/auth/ante/fee.go
index fb433241f254..0f10041c3733 100644
--- a/x/auth/ante/fee.go
+++ b/x/auth/ante/fee.go
@@ -42,13 +42,21 @@ func (dfd DeductFeeDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bo
 		return ctx, sdkerrors.Wrap(sdkerrors.ErrTxDecode, "Tx must be a FeeTx")
 	}
 
-	if ctx.BlockHeight() > 0 && feeTx.GetGas() == 0 {
+	if !simulate && ctx.BlockHeight() > 0 && feeTx.GetGas() == 0 {
 		return ctx, sdkerrors.Wrap(sdkerrors.ErrInvalidGasLimit, "must provide positive gas")
 	}
 
-	fee, priority, err := dfd.txFeeChecker(ctx, tx)
-	if err != nil {
-		return ctx, err
+	var (
+	  priority int64
+	  err error
+	)
+	
+	fee := feeTx.GetFee()
+	if !simulate {
+		fee, priority, err = dfd.txFeeChecker(ctx, tx)
+		if err != nil {
+			return ctx, err
+		}
 	}
 	if err := dfd.checkDeductFee(ctx, tx, fee); err != nil {
 		return ctx, err
diff --git a/x/auth/ante/fee_test.go b/x/auth/ante/fee_test.go
index c8ad40f3f511..4d2fdac56e46 100644
--- a/x/auth/ante/fee_test.go
+++ b/x/auth/ante/fee_test.go
@@ -36,6 +36,10 @@ func (s *AnteTestSuite) TestDeductFeeDecorator_ZeroGas() {
 
 	_, err = antehandler(s.ctx, tx, false)
 	s.Require().Error(err)
+
+	// zero gas is accepted in simulation mode
+	_, err = antehandler(s.ctx, tx, true)
+	s.Require().NoError(err)
 }
 
 func (s *AnteTestSuite) TestEnsureMempoolFees() {
@@ -74,6 +78,11 @@ func (s *AnteTestSuite) TestEnsureMempoolFees() {
 	_, err = antehandler(s.ctx, tx, false)
 	s.Require().NotNil(err, "Decorator should have errored on too low fee for local gasPrice")
 
+	// antehandler should not error since we do not check minGasPrice in simulation mode
+	cacheCtx, _ := s.ctx.CacheContext()
+	_, err = antehandler(cacheCtx, tx, true)
+	s.Require().Nil(err, "Decorator should not have errored in simulation mode")
+
 	// Set IsCheckTx to false
 	s.ctx = s.ctx.WithIsCheckTx(false)