diff --git a/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/handle/HandleContextImpl.java b/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/handle/HandleContextImpl.java
index a0200faabdba..cf119910c8e1 100644
--- a/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/handle/HandleContextImpl.java
+++ b/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/handle/HandleContextImpl.java
@@ -353,7 +353,12 @@ public TransactionKeys allKeysForTransaction(
         dispatcher.dispatchPureChecks(nestedTxn);
         final var nestedContext = new PreHandleContextImpl(
                 readableStoreFactory(), nestedTxn, payerForNested, configuration(), dispatcher);
-        dispatcher.dispatchPreHandle(nestedContext);
+        try {
+            dispatcher.dispatchPreHandle(nestedContext);
+        } catch (final PreCheckException ignored) {
+            // We must ignore/translate the exception here, as this is key gathering, not transaction validation.
+            throw new PreCheckException(ResponseCodeEnum.UNRESOLVABLE_REQUIRED_SIGNERS);
+        }
         return nestedContext;
     }
 
diff --git a/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImpl.java b/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImpl.java
index 28bc0ad97da6..dfb955323326 100644
--- a/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImpl.java
+++ b/hedera-node/hedera-app/src/main/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImpl.java
@@ -459,7 +459,12 @@ public TransactionKeys allKeysForTransaction(
         dispatcher.dispatchPureChecks(nestedTxn);
         final var nestedContext =
                 new PreHandleContextImpl(storeFactory, nestedTxn, payerForNested, configuration, dispatcher);
-        dispatcher.dispatchPreHandle(nestedContext);
+        try {
+            dispatcher.dispatchPreHandle(nestedContext);
+        } catch (final PreCheckException ignored) {
+            // We must ignore/translate the exception here, as this is key gathering, not transaction validation.
+            throw new PreCheckException(ResponseCodeEnum.UNRESOLVABLE_REQUIRED_SIGNERS);
+        }
         return nestedContext;
     }
 
diff --git a/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/handle/HandleContextImplTest.java b/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/handle/HandleContextImplTest.java
index a2307fb4c0b7..06ecf97fd523 100644
--- a/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/handle/HandleContextImplTest.java
+++ b/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/handle/HandleContextImplTest.java
@@ -19,6 +19,7 @@
 import static com.hedera.hapi.node.base.ResponseCodeEnum.INSUFFICIENT_ACCOUNT_BALANCE;
 import static com.hedera.hapi.node.base.ResponseCodeEnum.INVALID_TRANSACTION_BODY;
 import static com.hedera.hapi.node.base.ResponseCodeEnum.SUCCESS;
+import static com.hedera.hapi.node.base.ResponseCodeEnum.UNRESOLVABLE_REQUIRED_SIGNERS;
 import static com.hedera.node.app.spi.HapiUtils.functionOf;
 import static com.hedera.node.app.spi.fixtures.workflows.ExceptionConditions.responseCode;
 import static com.hedera.node.app.spi.workflows.HandleContext.TransactionCategory.CHILD;
@@ -573,15 +574,14 @@ void testAllKeysForTransactionWithFailingPureCheck() throws PreCheckException {
 
         @Test
         void testAllKeysForTransactionWithFailingPreHandle() throws PreCheckException {
-            // given
             doThrow(new PreCheckException(INSUFFICIENT_ACCOUNT_BALANCE))
                     .when(dispatcher)
                     .dispatchPreHandle(any());
 
-            // when
+            // gathering keys should not throw exceptions except for inability to read a key.
             assertThatThrownBy(() -> context.allKeysForTransaction(defaultTransactionBody(), ERIN.accountID()))
                     .isInstanceOf(PreCheckException.class)
-                    .has(responseCode(INSUFFICIENT_ACCOUNT_BALANCE));
+                    .has(responseCode(UNRESOLVABLE_REQUIRED_SIGNERS));
         }
     }
 
diff --git a/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImplTest.java b/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImplTest.java
index 0467b45559bc..932509b7efe2 100644
--- a/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImplTest.java
+++ b/hedera-node/hedera-app/src/test/java/com/hedera/node/app/workflows/prehandle/PreHandleContextImplTest.java
@@ -18,6 +18,7 @@
 
 import static com.hedera.hapi.node.base.ResponseCodeEnum.INSUFFICIENT_ACCOUNT_BALANCE;
 import static com.hedera.hapi.node.base.ResponseCodeEnum.INVALID_TRANSACTION_BODY;
+import static com.hedera.hapi.node.base.ResponseCodeEnum.UNRESOLVABLE_REQUIRED_SIGNERS;
 import static com.hedera.node.app.spi.fixtures.workflows.ExceptionConditions.responseCode;
 import static com.hedera.node.app.workflows.prehandle.PreHandleContextListUpdatesTest.A_COMPLEX_KEY;
 import static org.assertj.core.api.Assertions.assertThat;
@@ -189,10 +190,10 @@ void testAllKeysForTransactionWithFailingPreHandle() throws PreCheckException {
                     .when(dispatcher)
                     .dispatchPreHandle(any());
 
-            // then
+            // gathering keys should not throw exceptions except for inability to read a key.
             assertThatThrownBy(() -> subject.allKeysForTransaction(TransactionBody.DEFAULT, ERIN.accountID()))
                     .isInstanceOf(PreCheckException.class)
-                    .has(responseCode(INSUFFICIENT_ACCOUNT_BALANCE));
+                    .has(responseCode(UNRESOLVABLE_REQUIRED_SIGNERS));
         }
     }
 }