diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8a6262a3a3..a6521f6edf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -83,6 +83,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (x/modules) [\#722](https://github.com/line/lbm-sdk/pull/722) Check error for `RegisterQueryHandlerClient` in all modules `RegisterGRPCGatewayRoutes`
 * (x/bank) [\#716](https://github.com/line/lbm-sdk/pull/716) remove useless DenomMetadata key function
 * (x/foundation) [\#704](https://github.com/line/lbm-sdk/pull/704) update x/foundation params
+* (x/wasm)  [\#695](https://github.com/line/lbm-sdk/pull/695) fix to prevent external filesystem dependency of simulation
 
 ### Bug Fixes
 * (x/wasm) [\#453](https://github.com/line/lbm-sdk/pull/453) modify wasm grpc query api path
diff --git a/x/wasm/keeper/testdata/reflect.go b/x/wasm/keeper/testdata/reflect.go
new file mode 100644
index 0000000000..ad365ce0c2
--- /dev/null
+++ b/x/wasm/keeper/testdata/reflect.go
@@ -0,0 +1,12 @@
+package testdata
+
+import (
+	_ "embed"
+)
+
+//go:embed reflect.wasm
+var reflectContract []byte
+
+func ReflectContractWasm() []byte {
+	return reflectContract
+}
diff --git a/x/wasm/simulation/operations.go b/x/wasm/simulation/operations.go
index 6ecc03df3e..cf04af35d3 100644
--- a/x/wasm/simulation/operations.go
+++ b/x/wasm/simulation/operations.go
@@ -2,7 +2,6 @@ package simulation
 
 import (
 	"math/rand"
-	"os"
 
 	"github.com/line/lbm-sdk/baseapp"
 	simappparams "github.com/line/lbm-sdk/simapp/params"
@@ -10,6 +9,7 @@ import (
 	"github.com/line/lbm-sdk/types/module"
 	simtypes "github.com/line/lbm-sdk/types/simulation"
 	"github.com/line/lbm-sdk/x/simulation"
+	"github.com/line/lbm-sdk/x/wasm/keeper/testdata"
 	"github.com/line/lbm-sdk/x/wasm/types"
 )
 
@@ -37,7 +37,6 @@ func WeightedOperations(
 	var (
 		weightMsgStoreCode           int
 		weightMsgInstantiateContract int
-		wasmContractPath             string
 	)
 
 	simstate.AppParams.GetOrGenerate(simstate.Cdc, OpWeightMsgStoreCode, &weightMsgStoreCode, nil,
@@ -51,17 +50,8 @@ func WeightedOperations(
 			weightMsgInstantiateContract = simappparams.DefaultWeightMsgInstantiateContract
 		},
 	)
-	simstate.AppParams.GetOrGenerate(simstate.Cdc, OpReflectContractPath, &wasmContractPath, nil,
-		func(_ *rand.Rand) {
-			// simulations are run from the `app` folder
-			wasmContractPath = "../x/wasm/keeper/testdata/reflect.wasm"
-		},
-	)
 
-	wasmBz, err := os.ReadFile(wasmContractPath)
-	if err != nil {
-		panic(err)
-	}
+	wasmBz := testdata.ReflectContractWasm()
 
 	return simulation.WeightedOperations{
 		simulation.NewWeightedOperation(
diff --git a/x/wasm/simulation/operations_test.go b/x/wasm/simulation/operations_test.go
new file mode 100644
index 0000000000..d5e476ed05
--- /dev/null
+++ b/x/wasm/simulation/operations_test.go
@@ -0,0 +1,73 @@
+package simulation
+
+import (
+	"reflect"
+	"testing"
+
+	simappparams "github.com/line/lbm-sdk/simapp/params"
+	"github.com/stretchr/testify/require"
+
+	"github.com/line/lbm-sdk/types/module"
+	"github.com/line/lbm-sdk/x/simulation"
+	"github.com/line/lbm-sdk/x/wasm/keeper"
+	"github.com/line/lbm-sdk/x/wasm/types"
+)
+
+func TestWeightedOperations(t *testing.T) {
+	type args struct {
+		simstate   *module.SimulationState
+		ak         types.AccountKeeper
+		bk         simulation.BankKeeper
+		wasmKeeper WasmKeeper
+		wasmBz     []byte
+	}
+
+	params := args{
+		simstate:   &module.SimulationState{},
+		wasmKeeper: makeKeeper(t).WasmKeeper,
+	}
+
+	tests := []struct {
+		name string
+		args args
+		want simulation.WeightedOperations
+	}{
+		{
+			name: "execute success",
+			args: args{
+				simstate: &module.SimulationState{},
+			},
+			want: simulation.WeightedOperations{
+				simulation.NewWeightedOperation(
+					simappparams.DefaultWeightMsgStoreCode,
+					SimulateMsgStoreCode(params.ak, params.bk, params.wasmKeeper, params.wasmBz)),
+				simulation.NewWeightedOperation(
+					simappparams.DefaultWeightMsgInstantiateContract,
+					SimulateMsgInstantiateContract(params.ak, params.bk, params.wasmKeeper)),
+			},
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := WeightedOperations(tt.args.simstate, tt.args.ak, tt.args.bk, tt.args.wasmKeeper)
+			for i := range got {
+				require.Equal(t, tt.want[i].Weight(), got[i].Weight(), "WeightedOperations().Weight()")
+
+				expected := reflect.TypeOf(tt.want[i].Op()).String()
+				actual := reflect.TypeOf(got[i].Op()).String()
+
+				require.Equal(t, expected, actual, "return value type should be the same")
+			}
+		})
+	}
+}
+
+// Copy from keeper_test.go
+const SupportedFeatures = "iterator,staking,stargate"
+
+// Copy from keeper_test.go
+func makeKeeper(t *testing.T) keeper.TestKeepers {
+	_, keepers := keeper.CreateTestInput(t, false, SupportedFeatures, nil, nil)
+	return keepers
+}