diff --git a/CHANGELOG.md b/CHANGELOG.md
index a29245b0698..069a91f883c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -139,6 +139,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (x/upgrade) [#12906](https://github.com/cosmos/cosmos-sdk/pull/12906) Fix upgrade failure by moving downgrade verification logic after store migration.
 * (store) [#12945](https://github.com/cosmos/cosmos-sdk/pull/12945) Fix nil end semantics in store/cachekv/iterator when iterating a dirty cache.
 * (export) [#13029](https://github.com/cosmos/cosmos-sdk/pull/13029) Fix exporting the blockParams regression.
+* (x/gov) [#13051](https://github.com/cosmos/cosmos-sdk/pull/13051) In SubmitPropsal, when a legacy msg fails it's handler call, wrap the error as ErrInvalidProposalContent (instead of ErrNoProposalHandlerExists).
 
 ### Deprecated
 
diff --git a/x/gov/keeper/proposal.go b/x/gov/keeper/proposal.go
index 59d7bd65392..2eb75f4cd14 100644
--- a/x/gov/keeper/proposal.go
+++ b/x/gov/keeper/proposal.go
@@ -1,6 +1,7 @@
 package keeper
 
 import (
+	"errors"
 	"fmt"
 
 	"github.com/cosmos/cosmos-sdk/client"
@@ -54,7 +55,10 @@ func (keeper Keeper) SubmitProposal(ctx sdk.Context, messages []sdk.Msg, metadat
 		if msg, ok := msg.(*v1.MsgExecLegacyContent); ok {
 			cacheCtx, _ := ctx.CacheContext()
 			if _, err := handler(cacheCtx, msg); err != nil {
-				return v1.Proposal{}, sdkerrors.Wrap(types.ErrNoProposalHandlerExists, err.Error())
+				if errors.Is(types.ErrNoProposalHandlerExists, err) {
+					return v1.Proposal{}, err
+				}
+				return v1.Proposal{}, sdkerrors.Wrap(types.ErrInvalidProposalContent, err.Error())
 			}
 		}