diff --git a/client/config/config.go b/client/config/config.go
index 6297cf2c26b1..f9e48c989d88 100644
--- a/client/config/config.go
+++ b/client/config/config.go
@@ -62,6 +62,10 @@ func ReadFromClientConfig(ctx client.Context) (client.Context, error) {
 			return ctx, fmt.Errorf("couldn't make client config: %v", err)
 		}
 
+		if ctx.ChainID != "" {
+			conf.ChainID = ctx.ChainID // chain-id will be written to the client.toml while initiating the chain.
+		}
+
 		if err := writeConfigToFile(configFilePath, conf); err != nil {
 			return ctx, fmt.Errorf("could not write client config to the file: %v", err)
 		}
diff --git a/client/config/config_test.go b/client/config/config_test.go
index 3f5c5902820b..287a976d3970 100644
--- a/client/config/config_test.go
+++ b/client/config/config_test.go
@@ -26,10 +26,12 @@ const (
 // initClientContext initiates client Context for tests
 func initClientContext(t *testing.T, envVar string) (client.Context, func()) {
 	home := t.TempDir()
+	chainId := "test-chain"
 	clientCtx := client.Context{}.
 		WithHomeDir(home).
 		WithViper("").
-		WithCodec(codec.NewProtoCodec(codectypes.NewInterfaceRegistry()))
+		WithCodec(codec.NewProtoCodec(codectypes.NewInterfaceRegistry())).
+		WithChainID(chainId)
 
 	require.NoError(t, clientCtx.Viper.BindEnv(nodeEnv))
 	if envVar != "" {
@@ -38,6 +40,7 @@ func initClientContext(t *testing.T, envVar string) (client.Context, func()) {
 
 	clientCtx, err := config.ReadFromClientConfig(clientCtx)
 	require.NoError(t, err)
+	require.Equal(t, clientCtx.ChainID, chainId)
 
 	return clientCtx, func() { _ = os.RemoveAll(home) }
 }