diff --git a/CHANGELOG.md b/CHANGELOG.md
index a6c0e18105dd..7549a90c24fe 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -58,6 +58,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * [#18531](https://github.com/cosmos/cosmos-sdk/pull/18531) Baseapp's `GetConsensusParams` returns an empty struct instead of panicking if no params are found.
 * (client/tx) [#18472](https://github.com/cosmos/cosmos-sdk/pull/18472) Utilizes the correct Pubkey when simulating a transaction.
 * (baseapp) [#18486](https://github.com/cosmos/cosmos-sdk/pull/18486) Fixed FinalizeBlock calls not being passed to ABCIListeners.
+* (baseapp) [#18627](https://github.com/cosmos/cosmos-sdk/pull/18627) Post handlers are run on non successful transaction executions too.
 
 ## [v0.50.1](https://github.com/cosmos/cosmos-sdk/releases/tag/v0.50.1) - 2023-11-07
 
diff --git a/baseapp/baseapp.go b/baseapp/baseapp.go
index 513e76b742a5..8de14c5f058b 100644
--- a/baseapp/baseapp.go
+++ b/baseapp/baseapp.go
@@ -925,24 +925,25 @@ func (app *BaseApp) runTx(mode execMode, txBytes []byte) (gInfo sdk.GasInfo, res
 	if err == nil {
 		result, err = app.runMsgs(runMsgCtx, msgs, msgsV2, mode)
 	}
-	if err == nil {
-		// Run optional postHandlers.
-		//
-		// Note: If the postHandler fails, we also revert the runMsgs state.
-		if app.postHandler != nil {
-			// The runMsgCtx context currently contains events emitted by the ante handler.
-			// We clear this to correctly order events without duplicates.
-			// Note that the state is still preserved.
-			postCtx := runMsgCtx.WithEventManager(sdk.NewEventManager())
-
-			newCtx, err := app.postHandler(postCtx, tx, mode == execModeSimulate, err == nil)
-			if err != nil {
-				return gInfo, nil, anteEvents, err
-			}
 
-			result.Events = append(result.Events, newCtx.EventManager().ABCIEvents()...)
+	// Run optional postHandlers (should run regardless of the execution result).
+	//
+	// Note: If the postHandler fails, we also revert the runMsgs state.
+	if app.postHandler != nil {
+		// The runMsgCtx context currently contains events emitted by the ante handler.
+		// We clear this to correctly order events without duplicates.
+		// Note that the state is still preserved.
+		postCtx := runMsgCtx.WithEventManager(sdk.NewEventManager())
+
+		newCtx, err := app.postHandler(postCtx, tx, mode == execModeSimulate, err == nil)
+		if err != nil {
+			return gInfo, nil, anteEvents, err
 		}
 
+		result.Events = append(result.Events, newCtx.EventManager().ABCIEvents()...)
+	}
+
+	if err == nil {
 		if mode == execModeFinalize {
 			// When block gas exceeds, it'll panic and won't commit the cached store.
 			consumeBlockGas()
diff --git a/baseapp/baseapp_test.go b/baseapp/baseapp_test.go
index ea082b8b0464..3fe1b3463f0f 100644
--- a/baseapp/baseapp_test.go
+++ b/baseapp/baseapp_test.go
@@ -587,6 +587,53 @@ func TestBaseAppAnteHandler(t *testing.T) {
 	suite.baseApp.Commit()
 }
 
+func TestBaseAppPostHandler(t *testing.T) {
+	postHandlerRun := false
+	anteOpt := func(bapp *baseapp.BaseApp) {
+		bapp.SetPostHandler(func(ctx sdk.Context, tx sdk.Tx, simulate, success bool) (newCtx sdk.Context, err error) {
+			postHandlerRun = true
+			return ctx, nil
+		})
+	}
+
+	suite := NewBaseAppSuite(t, anteOpt)
+
+	baseapptestutil.RegisterCounterServer(suite.baseApp.MsgServiceRouter(), CounterServerImpl{t, capKey1, []byte("foo")})
+
+	_, err := suite.baseApp.InitChain(&abci.RequestInitChain{
+		ConsensusParams: &cmtproto.ConsensusParams{},
+	})
+	require.NoError(t, err)
+
+	// execute a tx that will fail ante handler execution
+	//
+	// NOTE: State should not be mutated here. This will be implicitly checked by
+	// the next txs ante handler execution (anteHandlerTxTest).
+	tx := newTxCounter(t, suite.txConfig, 0, 0)
+	txBytes, err := suite.txConfig.TxEncoder()(tx)
+	require.NoError(t, err)
+
+	res, err := suite.baseApp.FinalizeBlock(&abci.RequestFinalizeBlock{Height: 1, Txs: [][]byte{txBytes}})
+	require.NoError(t, err)
+	require.Empty(t, res.Events)
+	require.True(t, res.TxResults[0].IsOK(), fmt.Sprintf("%v", res))
+
+	// PostHandler runs on successful message execution
+	require.True(t, postHandlerRun)
+
+	// It should also run on failed message execution
+	postHandlerRun = false
+	tx = setFailOnHandler(suite.txConfig, tx, true)
+	txBytes, err = suite.txConfig.TxEncoder()(tx)
+	require.NoError(t, err)
+	res, err = suite.baseApp.FinalizeBlock(&abci.RequestFinalizeBlock{Height: 1, Txs: [][]byte{txBytes}})
+	require.NoError(t, err)
+	require.Empty(t, res.Events)
+	require.False(t, res.TxResults[0].IsOK(), fmt.Sprintf("%v", res))
+
+	require.True(t, postHandlerRun)
+}
+
 // Test and ensure that invalid block heights always cause errors.
 // See issues:
 // - https://github.com/cosmos/cosmos-sdk/issues/11220