diff --git a/changelog.md b/changelog.md
index 5db8239aac..08cd244d61 100644
--- a/changelog.md
+++ b/changelog.md
@@ -4,6 +4,7 @@
 
 ### Fixes
 
+- [#3878](https://github.com/ignite/cli/pull/3878) Support local forks of Cosmos SDK in scaffolded chain.
 - [#3867](https://github.com/ignite/cli/pull/3867) Fix genesis export for ibc modules.
 - [#3869](https://github.com/ignite/cli/pull/3869) Fix .git in parent dir
 
diff --git a/go.mod b/go.mod
index 86bdbbbf6c..9c8a8e53d6 100644
--- a/go.mod
+++ b/go.mod
@@ -33,7 +33,7 @@ require (
 	github.com/charmbracelet/lipgloss v0.6.0
 	github.com/cockroachdb/errors v1.11.1
 	github.com/cometbft/cometbft v0.38.2
-	github.com/cosmos/cosmos-sdk v0.50.1
+	github.com/cosmos/cosmos-sdk v0.50.2
 	github.com/cosmos/go-bip39 v1.0.0
 	github.com/cosmos/gogoproto v1.4.11
 	github.com/cosmos/ibc-go/modules/capability v1.0.0
@@ -100,7 +100,7 @@ require (
 	cosmossdk.io/depinject v1.0.0-alpha.4 // indirect
 	cosmossdk.io/errors v1.0.0 // indirect
 	cosmossdk.io/log v1.2.1 // indirect
-	cosmossdk.io/store v1.0.0 // indirect
+	cosmossdk.io/store v1.0.1 // indirect
 	cosmossdk.io/x/tx v0.12.0 // indirect
 	dario.cat/mergo v1.0.0 // indirect
 	filippo.io/edwards25519 v1.0.0 // indirect
@@ -112,6 +112,7 @@ require (
 	github.com/Antonboom/testifylint v0.2.3 // indirect
 	github.com/Azure/go-ansiterm v0.0.0-20230124172434-306776ec8161 // indirect
 	github.com/BurntSushi/toml v1.3.2 // indirect
+	github.com/DataDog/datadog-go v3.2.0+incompatible // indirect
 	github.com/DataDog/zstd v1.5.5 // indirect
 	github.com/Djarvur/go-err113 v0.0.0-20210108212216-aea10b59be24 // indirect
 	github.com/GaijinEntertainment/go-exhaustruct/v3 v3.1.0 // indirect
@@ -164,7 +165,7 @@ require (
 	github.com/cockroachdb/pebble v0.0.0-20231102162011-844f0582c2eb // indirect
 	github.com/cockroachdb/redact v1.1.5 // indirect
 	github.com/cockroachdb/tokenbucket v0.0.0-20230807174530-cc333fc44b06 // indirect
-	github.com/cometbft/cometbft-db v0.8.0 // indirect
+	github.com/cometbft/cometbft-db v0.9.1 // indirect
 	github.com/containerd/console v1.0.4-0.20230508195404-8d3c090fd31c // indirect
 	github.com/containerd/containerd v1.7.11 // indirect
 	github.com/cosiner/argv v0.1.0 // indirect
@@ -244,7 +245,7 @@ require (
 	github.com/gogo/googleapis v1.4.1 // indirect
 	github.com/gogo/protobuf v1.3.2 // indirect
 	github.com/golang-jwt/jwt/v4 v4.1.0 // indirect
-	github.com/golang/glog v1.1.2 // indirect
+	github.com/golang/glog v1.2.0 // indirect
 	github.com/golang/groupcache v0.0.0-20210331224755-41bb18bfe9da // indirect
 	github.com/golang/protobuf v1.5.3 // indirect
 	github.com/golang/snappy v0.0.4 // indirect
@@ -306,7 +307,7 @@ require (
 	github.com/kisielk/errcheck v1.6.3 // indirect
 	github.com/kisielk/gotool v1.0.0 // indirect
 	github.com/kkHAIKE/contextcheck v1.1.4 // indirect
-	github.com/klauspost/compress v1.17.2 // indirect
+	github.com/klauspost/compress v1.17.4 // indirect
 	github.com/klauspost/pgzip v1.2.5 // indirect
 	github.com/kr/pretty v0.3.1 // indirect
 	github.com/kr/text v0.2.0 // indirect
@@ -317,7 +318,7 @@ require (
 	github.com/ldez/tagliatelle v0.5.0 // indirect
 	github.com/leonklingele/grouper v1.1.1 // indirect
 	github.com/libp2p/go-buffer-pool v0.1.0 // indirect
-	github.com/linxGnu/grocksdb v1.8.4 // indirect
+	github.com/linxGnu/grocksdb v1.8.6 // indirect
 	github.com/lucasb-eyer/go-colorful v1.2.0 // indirect
 	github.com/lufeee/execinquery v1.2.1 // indirect
 	github.com/macabu/inamedparam v0.1.2 // indirect
diff --git a/go.sum b/go.sum
index 47e2c0b4e1..cde2407ed8 100644
--- a/go.sum
+++ b/go.sum
@@ -66,8 +66,8 @@ cosmossdk.io/log v1.2.1 h1:Xc1GgTCicniwmMiKwDxUjO4eLhPxoVdI9vtMW8Ti/uk=
 cosmossdk.io/log v1.2.1/go.mod h1:GNSCc/6+DhFIj1aLn/j7Id7PaO8DzNylUZoOYBL9+I4=
 cosmossdk.io/math v1.2.0 h1:8gudhTkkD3NxOP2YyyJIYYmt6dQ55ZfJkDOaxXpy7Ig=
 cosmossdk.io/math v1.2.0/go.mod h1:l2Gnda87F0su8a/7FEKJfFdJrM0JZRXQaohlgJeyQh0=
-cosmossdk.io/store v1.0.0 h1:6tnPgTpTSIskaTmw/4s5C9FARdgFflycIc9OX8i1tOI=
-cosmossdk.io/store v1.0.0/go.mod h1:ABMprwjvx6IpMp8l06TwuMrj6694/QP5NIW+X6jaTYc=
+cosmossdk.io/store v1.0.1 h1:XBDhCqlL+2MUgE8CHWwndKVJ4beX+TyaPIjB5SV62dM=
+cosmossdk.io/store v1.0.1/go.mod h1:EFtENTqVTuWwitGW1VwaBct+yDagk7oG/axBMPH+FXs=
 cosmossdk.io/x/circuit v0.1.0 h1:IAej8aRYeuOMritczqTlljbUVHq1E85CpBqaCTwYgXs=
 cosmossdk.io/x/circuit v0.1.0/go.mod h1:YDzblVE8+E+urPYQq5kq5foRY/IzhXovSYXb4nwd39w=
 cosmossdk.io/x/evidence v0.1.0 h1:J6OEyDl1rbykksdGynzPKG5R/zm6TacwW2fbLTW4nCk=
@@ -107,6 +107,7 @@ github.com/BurntSushi/toml v1.3.2/go.mod h1:CxXYINrC8qIiEnFrOxCa7Jy5BFHlXnUU2pbi
 github.com/BurntSushi/xgb v0.0.0-20160522181843-27f122750802/go.mod h1:IVnqGOEym/WlBOVXweHU+Q+/VP0lqqI8lqeDx9IjBqo=
 github.com/DATA-DOG/go-sqlmock v1.5.0 h1:Shsta01QNfFxHCfpW6YH2STWB0MudeXXEWMr20OEh60=
 github.com/DATA-DOG/go-sqlmock v1.5.0/go.mod h1:f/Ixk793poVmq4qj/V1dPUg2JEAKC73Q5eFN3EC/SaM=
+github.com/DataDog/datadog-go v3.2.0+incompatible h1:qSG2N4FghB1He/r2mFrWKCaL7dXCilEuNEeAn20fdD4=
 github.com/DataDog/datadog-go v3.2.0+incompatible/go.mod h1:LButxg5PwREeZtORoXG3tL4fMGNddJ+vMq1mwgfaqoQ=
 github.com/DataDog/zstd v1.5.5 h1:oWf5W7GtOLgp6bciQYDmhHHjdhYkALu6S/5Ni9ZgSvQ=
 github.com/DataDog/zstd v1.5.5/go.mod h1:g4AWEaM3yOg3HYfnJ3YIawPnVdXJh9QME85blwSAmyw=
@@ -324,8 +325,8 @@ github.com/cockroachdb/tokenbucket v0.0.0-20230807174530-cc333fc44b06/go.mod h1:
 github.com/codahale/hdrhistogram v0.0.0-20161010025455-3a0bb77429bd/go.mod h1:sE/e/2PUdi/liOCUjSTXgM1o87ZssimdTWN964YiIeI=
 github.com/cometbft/cometbft v0.38.2 h1:io0JCh5EPxINKN5ZMI5hCdpW3QVZRy+o8qWe3mlJa/8=
 github.com/cometbft/cometbft v0.38.2/go.mod h1:PIi48BpzwlHqtV3mzwPyQgOyOnU94BNBimLS2ebBHOg=
-github.com/cometbft/cometbft-db v0.8.0 h1:vUMDaH3ApkX8m0KZvOFFy9b5DZHBAjsnEuo9AKVZpjo=
-github.com/cometbft/cometbft-db v0.8.0/go.mod h1:6ASCP4pfhmrCBpfk01/9E1SI29nD3HfVHrY4PG8x5c0=
+github.com/cometbft/cometbft-db v0.9.1 h1:MIhVX5ja5bXNHF8EYrThkG9F7r9kSfv8BX4LWaxWJ4M=
+github.com/cometbft/cometbft-db v0.9.1/go.mod h1:iliyWaoV0mRwBJoizElCwwRA9Tf7jZJOURcRZF9m60U=
 github.com/containerd/console v1.0.1/go.mod h1:XUsP6YE/mKtz6bxc+I8UiKKTP04qjQL4qcS3XoQ5xkw=
 github.com/containerd/console v1.0.3/go.mod h1:7LqA/THxQ86k76b8c/EMSiaJ3h1eZkMkXar0TQ1gf3U=
 github.com/containerd/console v1.0.4-0.20230508195404-8d3c090fd31c h1:sgmd9/Gm5SFfxHSVVD7HAaEQlaUJKdJ2VlQM8SwUxvs=
@@ -353,8 +354,8 @@ github.com/cosmos/cosmos-db v1.0.0 h1:EVcQZ+qYag7W6uorBKFPvX6gRjw6Uq2hIh4hCWjuQ0
 github.com/cosmos/cosmos-db v1.0.0/go.mod h1:iBvi1TtqaedwLdcrZVYRSSCb6eSy61NLj4UNmdIgs0U=
 github.com/cosmos/cosmos-proto v1.0.0-beta.3 h1:VitvZ1lPORTVxkmF2fAp3IiA61xVwArQYKXTdEcpW6o=
 github.com/cosmos/cosmos-proto v1.0.0-beta.3/go.mod h1:t8IASdLaAq+bbHbjq4p960BvcTqtwuAxid3b/2rOD6I=
-github.com/cosmos/cosmos-sdk v0.50.1 h1:2SYwAYqd7ZwtrWxu/J8PwbQV/cDcu90bCr/a78g3lVw=
-github.com/cosmos/cosmos-sdk v0.50.1/go.mod h1:fsLSPGstCwn6MMsFDMAQWGJj8E4sYsN9Gnu1bGE5imA=
+github.com/cosmos/cosmos-sdk v0.50.2 h1:u52xPZXLfeuR1HbGPCyOsMQvAbCtvoJbpfH5diBPVuc=
+github.com/cosmos/cosmos-sdk v0.50.2/go.mod h1:n/WQqDh73qdtBmY9Op3sYgiBgTujSfGSd6CNh6GfqvQ=
 github.com/cosmos/go-bip39 v1.0.0 h1:pcomnQdrdH22njcAatO0yWojsUnCO3y2tNoV1cb6hHY=
 github.com/cosmos/go-bip39 v1.0.0/go.mod h1:RNJv0H/pOIVgxw6KS7QeX2a0Uo0aKUlfhZ4xuwvCdJw=
 github.com/cosmos/gogogateway v1.2.0 h1:Ae/OivNhp8DqBi/sh2A8a1D0y638GpL3tkmLQAiKxTE=
@@ -630,8 +631,8 @@ github.com/golang-jwt/jwt/v4 v4.1.0/go.mod h1:/xlHOz8bRuivTWchD4jCa+NbatV+wEUSzw
 github.com/golang-jwt/jwt/v4 v4.4.2 h1:rcc4lwaZgFMCZ5jxF9ABolDcIHdBytAFgqFPbSJQAYs=
 github.com/golang-jwt/jwt/v4 v4.4.2/go.mod h1:m21LjoU+eqJr34lmDMbreY2eSTRJ1cv77w39/MY0Ch0=
 github.com/golang/glog v0.0.0-20160126235308-23def4e6c14b/go.mod h1:SBH7ygxi8pfUlaOkMMuAQtPIUF8ecWP5IEl/CR7VP2Q=
-github.com/golang/glog v1.1.2 h1:DVjP2PbBOzHyzA+dn3WhHIq4NdVu3Q+pvivFICf/7fo=
-github.com/golang/glog v1.1.2/go.mod h1:zR+okUeTbrL6EL3xHUDxZuEtGv04p5shwip1+mL/rLQ=
+github.com/golang/glog v1.2.0 h1:uCdmnmatrKCgMBlM4rMuJZWOkPDqdbZPnrMXDY4gI68=
+github.com/golang/glog v1.2.0/go.mod h1:6AhwSGph0fcJtXVM/PEHPqZlFeoLxhs7/t5UDAwmO+w=
 github.com/golang/groupcache v0.0.0-20160516000752-02826c3e7903/go.mod h1:cIg4eruTrX1D+g88fzRXU5OdNfaM+9IcxsU14FzY7Hc=
 github.com/golang/groupcache v0.0.0-20190129154638-5b532d6fd5ef/go.mod h1:cIg4eruTrX1D+g88fzRXU5OdNfaM+9IcxsU14FzY7Hc=
 github.com/golang/groupcache v0.0.0-20190702054246-869f871628b6/go.mod h1:cIg4eruTrX1D+g88fzRXU5OdNfaM+9IcxsU14FzY7Hc=
@@ -954,8 +955,8 @@ github.com/kkHAIKE/contextcheck v1.1.4/go.mod h1:1+i/gWqokIa+dm31mqGLZhZJ7Uh44DJ
 github.com/klauspost/compress v1.10.3/go.mod h1:aoV0uJVorq1K+umq18yTdKaF57EivdYsUV+/s2qKfXs=
 github.com/klauspost/compress v1.11.7/go.mod h1:aoV0uJVorq1K+umq18yTdKaF57EivdYsUV+/s2qKfXs=
 github.com/klauspost/compress v1.12.3/go.mod h1:8dP1Hq4DHOhN9w426knH3Rhby4rFm6D8eO+e+Dq5Gzg=
-github.com/klauspost/compress v1.17.2 h1:RlWWUY/Dr4fL8qk9YG7DTZ7PDgME2V4csBXA8L/ixi4=
-github.com/klauspost/compress v1.17.2/go.mod h1:ntbaceVETuRiXiv4DpjP66DpAtAGkEQskQzEyD//IeE=
+github.com/klauspost/compress v1.17.4 h1:Ej5ixsIri7BrIjBkRZLTo6ghwrEtHFk7ijlczPW4fZ4=
+github.com/klauspost/compress v1.17.4/go.mod h1:/dCuZOvVtNoHsyb+cuJD3itjs3NbnF6KH9zAO4BDxPM=
 github.com/klauspost/pgzip v1.2.5 h1:qnWYvvKqedOF2ulHpMG72XQol4ILEJ8k2wwRl/Km8oE=
 github.com/klauspost/pgzip v1.2.5/go.mod h1:Ch1tH69qFZu15pkjo5kYi6mth2Zzwzt50oCQKQE9RUs=
 github.com/konsorten/go-windows-terminal-sequences v1.0.1/go.mod h1:T0+1ngSBFLxvqU3pZ+m/2kptfBszLMUkC4ZK/EgS/cQ=
@@ -993,8 +994,8 @@ github.com/libp2p/go-buffer-pool v0.1.0 h1:oK4mSFcQz7cTQIfqbe4MIj9gLW+mnanjyFtc6
 github.com/libp2p/go-buffer-pool v0.1.0/go.mod h1:N+vh8gMqimBzdKkSMVuydVDq+UV5QTWy5HSiZacSbPg=
 github.com/lightstep/lightstep-tracer-common/golang/gogo v0.0.0-20190605223551-bc2310a04743/go.mod h1:qklhhLq1aX+mtWk9cPHPzaBjWImj5ULL6C7HFJtXQMM=
 github.com/lightstep/lightstep-tracer-go v0.18.1/go.mod h1:jlF1pusYV4pidLvZ+XD0UBX0ZE6WURAspgAczcDHrL4=
-github.com/linxGnu/grocksdb v1.8.4 h1:ZMsBpPpJNtRLHiKKp0mI7gW+NT4s7UgfD5xHxx1jVRo=
-github.com/linxGnu/grocksdb v1.8.4/go.mod h1:xZCIb5Muw+nhbDK4Y5UJuOrin5MceOuiXkVUR7vp4WY=
+github.com/linxGnu/grocksdb v1.8.6 h1:O7I6SIGPrypf3f/gmrrLUBQDKfO8uOoYdWf4gLS06tc=
+github.com/linxGnu/grocksdb v1.8.6/go.mod h1:xZCIb5Muw+nhbDK4Y5UJuOrin5MceOuiXkVUR7vp4WY=
 github.com/lucasb-eyer/go-colorful v1.0.3/go.mod h1:R4dSotOR9KMtayYi1e77YzuveK+i7ruzyGqttikkLy0=
 github.com/lucasb-eyer/go-colorful v1.2.0 h1:1nnpGOrhyZZuNyfu1QjKiUICQ74+3FNCN69Aj6K7nkY=
 github.com/lucasb-eyer/go-colorful v1.2.0/go.mod h1:R4dSotOR9KMtayYi1e77YzuveK+i7ruzyGqttikkLy0=
diff --git a/ignite/pkg/cosmosbuf/buf.go b/ignite/pkg/cosmosbuf/buf.go
index 536abf6fb3..1607887576 100644
--- a/ignite/pkg/cosmosbuf/buf.go
+++ b/ignite/pkg/cosmosbuf/buf.go
@@ -96,7 +96,9 @@ func (b Buf) Update(ctx context.Context, modDir string, dependencies ...string)
 // Export runs the buf Export command for the files in the proto directory.
 func (b Buf) Export(ctx context.Context, protoDir, output string) error {
 	// Check if the proto directory is the Cosmos SDK one
-	if cosmosver.CosmosSDKModulePathPattern.MatchString(protoDir) {
+	// TODO(@julienrbrt): this whole custom handling can be deleted
+	// after https://github.com/cosmos/cosmos-sdk/pull/18993 in v29.
+	if strings.Contains(protoDir, cosmosver.CosmosSDKRepoName) {
 		if b.sdkProtoDir == "" {
 			// Copy Cosmos SDK proto path without the Buf workspace.
 			// This is done because the workspace contains a reference to
@@ -159,12 +161,9 @@ func (b Buf) Generate(
 		excluded[file] = struct{}{}
 	}
 
-	// TODO find a better way to generate the cosmos-sdk files
-	// the buf.work.yaml contains the `orm/internal` folder, but the `go mod`
-	// can't download this folder because is unused as a dependency. We need to
-	// change the workspace copying the files to another folder and generate the
-	// files.
-	if cosmosver.CosmosSDKModulePathPattern.MatchString(protoDir) {
+	// TODO(@julienrbrt): this whole custom handling can be deleted
+	// after https://github.com/cosmos/cosmos-sdk/pull/18993 in v29.
+	if strings.Contains(protoDir, cosmosver.CosmosSDKRepoName) {
 		if b.sdkProtoDir == "" {
 			b.sdkProtoDir, err = copySDKProtoDir(protoDir)
 			if err != nil {
diff --git a/ignite/pkg/cosmosver/detect.go b/ignite/pkg/cosmosver/detect.go
index dab7d36eb6..7f8f4b3efd 100644
--- a/ignite/pkg/cosmosver/detect.go
+++ b/ignite/pkg/cosmosver/detect.go
@@ -7,14 +7,17 @@ import (
 )
 
 var (
+	// CosmosSDKRepoName defines the name of the Cosmos SDK repository.
+	CosmosSDKRepoName = "cosmos-sdk"
 	// CosmosModulePath defines Cosmos SDK import path.
 	CosmosModulePath = "github.com/cosmos/cosmos-sdk"
 	// CosmosSDKModulePathPattern defines a regexp pattern for Cosmos SDK import path.
-	CosmosSDKModulePathPattern = regexp.MustCompile(`github\.com\/[^\/]+\/cosmos-sdk`)
+	CosmosSDKModulePathPattern = regexp.MustCompile(CosmosSDKRepoName + "$")
 )
 
 // Detect detects major version of Cosmos SDK.
-// If the Cosmos SDK is replaced with a fork, it will return the version of the fork.
+// If the Cosmos SDK is replaced with a fork, it returns the version of the fork.
+// If the Cosmos SDK is replaced with a local fork, it returns its non resolved version.
 func Detect(appPath string) (version Version, err error) {
 	parsed, err := gomodule.ParseAt(appPath)
 	if err != nil {
@@ -28,6 +31,16 @@ func Detect(appPath string) (version Version, err error) {
 
 	for _, v := range versions {
 		if CosmosSDKModulePathPattern.MatchString(v.Path) {
+			// an empty version means that Cosmos SDK is replaced with a local fork
+			// we fallback to use the non resolved go import of the Cosmos SDK
+			if v.Version == "" {
+				for _, r := range parsed.Require {
+					if r.Mod.Path == CosmosModulePath {
+						v.Version = r.Mod.Version
+					}
+				}
+			}
+
 			if version, err = Parse(v.Version); err != nil {
 				return version, err
 			}
diff --git a/ignite/pkg/cosmosver/detect_test.go b/ignite/pkg/cosmosver/detect_test.go
index 57f5295802..ef19b97d5d 100644
--- a/ignite/pkg/cosmosver/detect_test.go
+++ b/ignite/pkg/cosmosver/detect_test.go
@@ -19,4 +19,8 @@ func TestDetect(t *testing.T) {
 	v, err = cosmosver.Detect("testdata/chain-sdk-fork")
 	require.NoError(t, err)
 	require.Equal(t, "v0.50.1-rollkit-v0.11.6-no-fraud-proofs", v.Version)
+
+	v, err = cosmosver.Detect("testdata/chain-sdk-local-fork")
+	require.NoError(t, err)
+	require.Equal(t, "v0.50.2", v.Version)
 }
diff --git a/ignite/pkg/cosmosver/testdata/chain-sdk-local-fork/go.mod b/ignite/pkg/cosmosver/testdata/chain-sdk-local-fork/go.mod
new file mode 100644
index 0000000000..71f55203a6
--- /dev/null
+++ b/ignite/pkg/cosmosver/testdata/chain-sdk-local-fork/go.mod
@@ -0,0 +1,242 @@
+module my-new-chain
+
+go 1.21
+
+replace github.com/cosmos/cosmos-sdk => ./my/local/fork/cosmos-sdk
+
+require (
+	cosmossdk.io/api v0.7.2
+	cosmossdk.io/client/v2 v2.0.0-beta.1
+	cosmossdk.io/core v0.11.0
+	cosmossdk.io/depinject v1.0.0-alpha.4
+	cosmossdk.io/log v1.2.1
+	cosmossdk.io/store v1.0.1
+	cosmossdk.io/tools/confix v0.1.1
+	cosmossdk.io/x/circuit v0.1.0
+	cosmossdk.io/x/evidence v0.1.0
+	cosmossdk.io/x/feegrant v0.1.0
+	cosmossdk.io/x/upgrade v0.1.1
+	github.com/bufbuild/buf v1.27.2
+	github.com/cometbft/cometbft v0.38.2
+	github.com/cosmos/cosmos-db v1.0.0
+	github.com/cosmos/cosmos-proto v1.0.0-beta.3
+	github.com/cosmos/cosmos-sdk v0.50.2
+	github.com/cosmos/gogoproto v1.4.11
+	github.com/cosmos/ibc-go/modules/capability v1.0.0
+	github.com/cosmos/ibc-go/v8 v8.0.0
+	github.com/gorilla/mux v1.8.1
+	github.com/grpc-ecosystem/grpc-gateway v1.16.0
+	github.com/grpc-ecosystem/grpc-gateway/v2 v2.18.1
+	github.com/spf13/cobra v1.8.0
+	github.com/spf13/pflag v1.0.5
+	github.com/spf13/viper v1.17.0
+	github.com/stretchr/testify v1.8.4
+	google.golang.org/grpc/cmd/protoc-gen-go-grpc v1.3.0
+	google.golang.org/protobuf v1.31.0
+)
+
+require (
+	cloud.google.com/go v0.110.9 // indirect
+	cloud.google.com/go/compute v1.23.2 // indirect
+	cloud.google.com/go/compute/metadata v0.2.3 // indirect
+	cloud.google.com/go/iam v1.1.4 // indirect
+	cloud.google.com/go/storage v1.30.1 // indirect
+	connectrpc.com/connect v1.11.1 // indirect
+	connectrpc.com/otelconnect v0.6.0 // indirect
+	cosmossdk.io/collections v0.4.0 // indirect
+	cosmossdk.io/errors v1.0.0 // indirect
+	cosmossdk.io/math v1.2.0 // indirect
+	cosmossdk.io/x/tx v0.12.0 // indirect
+	filippo.io/edwards25519 v1.0.0 // indirect
+	github.com/99designs/go-keychain v0.0.0-20191008050251-8e49817e8af4 // indirect
+	github.com/99designs/keyring v1.2.1 // indirect
+	github.com/Azure/go-ansiterm v0.0.0-20230124172434-306776ec8161 // indirect
+	github.com/DataDog/datadog-go v3.2.0+incompatible // indirect
+	github.com/DataDog/zstd v1.5.5 // indirect
+	github.com/Microsoft/go-winio v0.6.1 // indirect
+	github.com/aws/aws-sdk-go v1.44.224 // indirect
+	github.com/beorn7/perks v1.0.1 // indirect
+	github.com/bgentry/go-netrc v0.0.0-20140422174119-9fd32a8b3d3d // indirect
+	github.com/bgentry/speakeasy v0.1.1-0.20220910012023-760eaf8b6816 // indirect
+	github.com/bits-and-blooms/bitset v1.8.0 // indirect
+	github.com/btcsuite/btcd/btcec/v2 v2.3.2 // indirect
+	github.com/bufbuild/protocompile v0.6.0 // indirect
+	github.com/cenkalti/backoff/v4 v4.1.3 // indirect
+	github.com/cespare/xxhash v1.1.0 // indirect
+	github.com/cespare/xxhash/v2 v2.2.0 // indirect
+	github.com/chzyer/readline v1.5.1 // indirect
+	github.com/cockroachdb/apd/v2 v2.0.2 // indirect
+	github.com/cockroachdb/errors v1.11.1 // indirect
+	github.com/cockroachdb/logtags v0.0.0-20230118201751-21c54148d20b // indirect
+	github.com/cockroachdb/pebble v0.0.0-20231102162011-844f0582c2eb // indirect
+	github.com/cockroachdb/redact v1.1.5 // indirect
+	github.com/cockroachdb/tokenbucket v0.0.0-20230807174530-cc333fc44b06 // indirect
+	github.com/cometbft/cometbft-db v0.9.1 // indirect
+	github.com/containerd/stargz-snapshotter/estargz v0.14.3 // indirect
+	github.com/cosmos/btcutil v1.0.5 // indirect
+	github.com/cosmos/go-bip39 v1.0.0 // indirect
+	github.com/cosmos/gogogateway v1.2.0 // indirect
+	github.com/cosmos/iavl v1.0.0 // indirect
+	github.com/cosmos/ics23/go v0.10.0 // indirect
+	github.com/cosmos/ledger-cosmos-go v0.13.3 // indirect
+	github.com/cpuguy83/go-md2man/v2 v2.0.3 // indirect
+	github.com/creachadair/atomicfile v0.3.1 // indirect
+	github.com/creachadair/tomledit v0.0.24 // indirect
+	github.com/danieljoos/wincred v1.2.0 // indirect
+	github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc // indirect
+	github.com/decred/dcrd/dcrec/secp256k1/v4 v4.2.0 // indirect
+	github.com/desertbit/timer v0.0.0-20180107155436-c41aec40b27f // indirect
+	github.com/dgraph-io/badger/v2 v2.2007.4 // indirect
+	github.com/dgraph-io/ristretto v0.1.1 // indirect
+	github.com/dgryski/go-farm v0.0.0-20200201041132-a6ae2369ad13 // indirect
+	github.com/distribution/reference v0.5.0 // indirect
+	github.com/docker/cli v24.0.6+incompatible // indirect
+	github.com/docker/distribution v2.8.3+incompatible // indirect
+	github.com/docker/docker v24.0.6+incompatible // indirect
+	github.com/docker/docker-credential-helpers v0.8.0 // indirect
+	github.com/docker/go-connections v0.4.0 // indirect
+	github.com/docker/go-units v0.5.0 // indirect
+	github.com/dustin/go-humanize v1.0.1 // indirect
+	github.com/dvsekhvalnov/jose2go v1.5.0 // indirect
+	github.com/emicklei/dot v1.6.0 // indirect
+	github.com/fatih/color v1.15.0 // indirect
+	github.com/felixge/fgprof v0.9.3 // indirect
+	github.com/felixge/httpsnoop v1.0.4 // indirect
+	github.com/fsnotify/fsnotify v1.6.0 // indirect
+	github.com/getsentry/sentry-go v0.25.0 // indirect
+	github.com/ghodss/yaml v1.0.0 // indirect
+	github.com/go-chi/chi/v5 v5.0.10 // indirect
+	github.com/go-kit/kit v0.12.0 // indirect
+	github.com/go-kit/log v0.2.1 // indirect
+	github.com/go-logfmt/logfmt v0.6.0 // indirect
+	github.com/go-logr/logr v1.2.4 // indirect
+	github.com/go-logr/stdr v1.2.2 // indirect
+	github.com/godbus/dbus v0.0.0-20190726142602-4481cbc300e2 // indirect
+	github.com/gofrs/uuid/v5 v5.0.0 // indirect
+	github.com/gogo/googleapis v1.4.1 // indirect
+	github.com/gogo/protobuf v1.3.2 // indirect
+	github.com/golang/glog v1.2.0 // indirect
+	github.com/golang/groupcache v0.0.0-20210331224755-41bb18bfe9da // indirect
+	github.com/golang/mock v1.6.0 // indirect
+	github.com/golang/protobuf v1.5.3 // indirect
+	github.com/golang/snappy v0.0.4 // indirect
+	github.com/google/btree v1.1.2 // indirect
+	github.com/google/go-cmp v0.6.0 // indirect
+	github.com/google/go-containerregistry v0.16.1 // indirect
+	github.com/google/orderedcode v0.0.1 // indirect
+	github.com/google/pprof v0.0.0-20230926050212-f7f687d19a98 // indirect
+	github.com/google/s2a-go v0.1.7 // indirect
+	github.com/google/uuid v1.3.1 // indirect
+	github.com/googleapis/enterprise-certificate-proxy v0.3.1 // indirect
+	github.com/googleapis/gax-go/v2 v2.12.0 // indirect
+	github.com/gorilla/handlers v1.5.2 // indirect
+	github.com/gorilla/websocket v1.5.0 // indirect
+	github.com/grpc-ecosystem/go-grpc-middleware v1.4.0 // indirect
+	github.com/gsterjov/go-libsecret v0.0.0-20161001094733-a6f4afe4910c // indirect
+	github.com/hashicorp/go-cleanhttp v0.5.2 // indirect
+	github.com/hashicorp/go-getter v1.7.3 // indirect
+	github.com/hashicorp/go-hclog v1.5.0 // indirect
+	github.com/hashicorp/go-immutable-radix v1.3.1 // indirect
+	github.com/hashicorp/go-metrics v0.5.2 // indirect
+	github.com/hashicorp/go-plugin v1.5.2 // indirect
+	github.com/hashicorp/go-safetemp v1.0.0 // indirect
+	github.com/hashicorp/go-version v1.6.0 // indirect
+	github.com/hashicorp/golang-lru v1.0.2 // indirect
+	github.com/hashicorp/hcl v1.0.0 // indirect
+	github.com/hashicorp/yamux v0.1.1 // indirect
+	github.com/hdevalence/ed25519consensus v0.1.0 // indirect
+	github.com/huandu/skiplist v1.2.0 // indirect
+	github.com/iancoleman/strcase v0.3.0 // indirect
+	github.com/improbable-eng/grpc-web v0.15.0 // indirect
+	github.com/inconshreveable/mousetrap v1.1.0 // indirect
+	github.com/jdx/go-netrc v1.0.0 // indirect
+	github.com/jmespath/go-jmespath v0.4.0 // indirect
+	github.com/jmhodges/levigo v1.0.0 // indirect
+	github.com/klauspost/compress v1.17.4 // indirect
+	github.com/klauspost/pgzip v1.2.6 // indirect
+	github.com/kr/pretty v0.3.1 // indirect
+	github.com/kr/text v0.2.0 // indirect
+	github.com/lib/pq v1.10.7 // indirect
+	github.com/libp2p/go-buffer-pool v0.1.0 // indirect
+	github.com/linxGnu/grocksdb v1.8.6 // indirect
+	github.com/magiconair/properties v1.8.7 // indirect
+	github.com/manifoldco/promptui v0.9.0 // indirect
+	github.com/mattn/go-colorable v0.1.13 // indirect
+	github.com/mattn/go-isatty v0.0.20 // indirect
+	github.com/matttproud/golang_protobuf_extensions/v2 v2.0.0 // indirect
+	github.com/minio/highwayhash v1.0.2 // indirect
+	github.com/mitchellh/go-homedir v1.1.0 // indirect
+	github.com/mitchellh/go-testing-interface v1.14.1 // indirect
+	github.com/mitchellh/mapstructure v1.5.0 // indirect
+	github.com/moby/term v0.5.0 // indirect
+	github.com/morikuni/aec v1.0.0 // indirect
+	github.com/mtibben/percent v0.2.1 // indirect
+	github.com/oasisprotocol/curve25519-voi v0.0.0-20230904125328-1f23a7beb09a // indirect
+	github.com/oklog/run v1.1.0 // indirect
+	github.com/opencontainers/go-digest v1.0.0 // indirect
+	github.com/opencontainers/image-spec v1.1.0-rc5 // indirect
+	github.com/pelletier/go-toml/v2 v2.1.0 // indirect
+	github.com/petermattis/goid v0.0.0-20230904192822-1876fd5063bc // indirect
+	github.com/pkg/browser v0.0.0-20210911075715-681adbf594b8 // indirect
+	github.com/pkg/errors v0.9.1 // indirect
+	github.com/pkg/profile v1.7.0 // indirect
+	github.com/pmezard/go-difflib v1.0.1-0.20181226105442-5d4384ee4fb2 // indirect
+	github.com/prometheus/client_golang v1.17.0 // indirect
+	github.com/prometheus/client_model v0.5.0 // indirect
+	github.com/prometheus/common v0.45.0 // indirect
+	github.com/prometheus/procfs v0.12.0 // indirect
+	github.com/rcrowley/go-metrics v0.0.0-20201227073835-cf1acfcdf475 // indirect
+	github.com/rogpeppe/go-internal v1.11.0 // indirect
+	github.com/rs/cors v1.10.1 // indirect
+	github.com/rs/zerolog v1.31.0 // indirect
+	github.com/russross/blackfriday/v2 v2.1.0 // indirect
+	github.com/sagikazarmark/locafero v0.3.0 // indirect
+	github.com/sagikazarmark/slog-shim v0.1.0 // indirect
+	github.com/sasha-s/go-deadlock v0.3.1 // indirect
+	github.com/sirupsen/logrus v1.9.3 // indirect
+	github.com/sourcegraph/conc v0.3.0 // indirect
+	github.com/spf13/afero v1.10.0 // indirect
+	github.com/spf13/cast v1.5.1 // indirect
+	github.com/subosito/gotenv v1.6.0 // indirect
+	github.com/syndtr/goleveldb v1.0.1-0.20220721030215-126854af5e6d // indirect
+	github.com/tendermint/go-amino v0.16.0 // indirect
+	github.com/tetratelabs/wazero v1.5.0 // indirect
+	github.com/tidwall/btree v1.7.0 // indirect
+	github.com/ulikunitz/xz v0.5.11 // indirect
+	github.com/vbatts/tar-split v0.11.5 // indirect
+	github.com/zondax/hid v0.9.2 // indirect
+	github.com/zondax/ledger-go v0.14.3 // indirect
+	go.etcd.io/bbolt v1.3.8 // indirect
+	go.opencensus.io v0.24.0 // indirect
+	go.opentelemetry.io/otel v1.19.0 // indirect
+	go.opentelemetry.io/otel/metric v1.19.0 // indirect
+	go.opentelemetry.io/otel/sdk v1.19.0 // indirect
+	go.opentelemetry.io/otel/trace v1.19.0 // indirect
+	go.uber.org/atomic v1.11.0 // indirect
+	go.uber.org/multierr v1.11.0 // indirect
+	go.uber.org/zap v1.26.0 // indirect
+	golang.org/x/crypto v0.16.0 // indirect
+	golang.org/x/exp v0.0.0-20231006140011-7918f672742d // indirect
+	golang.org/x/mod v0.13.0 // indirect
+	golang.org/x/net v0.19.0 // indirect
+	golang.org/x/oauth2 v0.13.0 // indirect
+	golang.org/x/sync v0.5.0 // indirect
+	golang.org/x/sys v0.15.0 // indirect
+	golang.org/x/term v0.15.0 // indirect
+	golang.org/x/text v0.14.0 // indirect
+	golang.org/x/tools v0.14.0 // indirect
+	golang.org/x/xerrors v0.0.0-20220907171357-04be3eba64a2 // indirect
+	google.golang.org/api v0.143.0 // indirect
+	google.golang.org/appengine v1.6.7 // indirect
+	google.golang.org/genproto v0.0.0-20231030173426-d783a09b4405 // indirect
+	google.golang.org/genproto/googleapis/api v0.0.0-20231106174013-bbf56f31fb17 // indirect
+	google.golang.org/genproto/googleapis/rpc v0.0.0-20231030173426-d783a09b4405 // indirect
+	google.golang.org/grpc v1.59.0 // indirect
+	gopkg.in/ini.v1 v1.67.0 // indirect
+	gopkg.in/yaml.v2 v2.4.0 // indirect
+	gopkg.in/yaml.v3 v3.0.1 // indirect
+	gotest.tools/v3 v3.5.1 // indirect
+	nhooyr.io/websocket v1.8.6 // indirect
+	pgregory.net/rapid v1.1.0 // indirect
+	sigs.k8s.io/yaml v1.4.0 // indirect
+)
diff --git a/ignite/pkg/gomodule/gomodule.go b/ignite/pkg/gomodule/gomodule.go
index 0333948b44..62eebbabea 100644
--- a/ignite/pkg/gomodule/gomodule.go
+++ b/ignite/pkg/gomodule/gomodule.go
@@ -166,7 +166,17 @@ func JoinPath(path, version string) string {
 
 // FindModule returns the Go module info for an import path.
 // The module is searched within the dependencies of the module defined in root dir.
+// If a local module path is passed, it returns the local module info.
 func FindModule(ctx context.Context, rootDir, path string) (Module, error) {
+	// can be a local module.
+	if filepath.IsAbs(path) || strings.HasPrefix(path, ".") { // indicates that this is a local module.
+		return Module{
+			Path:    path,
+			Version: "",
+			Dir:     path,
+		}, nil
+	}
+
 	var stdout bytes.Buffer
 	err := gocmd.ModDownload(ctx, rootDir, true, exec.StepOption(step.Stdout(&stdout)))
 	if err != nil {
diff --git a/ignite/pkg/gomodule/gomodule_test.go b/ignite/pkg/gomodule/gomodule_test.go
index 8c3cb19228..770d855428 100644
--- a/ignite/pkg/gomodule/gomodule_test.go
+++ b/ignite/pkg/gomodule/gomodule_test.go
@@ -67,6 +67,11 @@ func TestFindModule(t *testing.T) {
 			importPath: "github.com/gorilla/mux",
 			version:    "v1.8.0",
 		},
+		{
+			name:       "module exists with local replace",
+			importPath: "../local-module-fork",
+			version:    "",
+		},
 		{
 			name:       "module missing",
 			importPath: "github.com/foo/bar",
diff --git a/ignite/pkg/gomodule/testdata/local-module-fork/go.mod b/ignite/pkg/gomodule/testdata/local-module-fork/go.mod
new file mode 100644
index 0000000000..7c825304f0
--- /dev/null
+++ b/ignite/pkg/gomodule/testdata/local-module-fork/go.mod
@@ -0,0 +1 @@
+module github.com/ignite/modules
diff --git a/ignite/pkg/gomodule/testdata/module/go.mod b/ignite/pkg/gomodule/testdata/module/go.mod
index 6b0c1f1e4c..4f1d2b529c 100644
--- a/ignite/pkg/gomodule/testdata/module/go.mod
+++ b/ignite/pkg/gomodule/testdata/module/go.mod
@@ -5,4 +5,7 @@ go 1.21.0
 require (
 	github.com/gorilla/mux v1.8.0
 	github.com/stretchr/testify v1.8.2
+	github.com/ignite/modules v1.0.0
 )
+
+replace github.com/ignite/modules => ../local-module-fork
diff --git a/ignite/pkg/protoanalysis/protoanalysis.go b/ignite/pkg/protoanalysis/protoanalysis.go
index b57915c825..4744bf008d 100644
--- a/ignite/pkg/protoanalysis/protoanalysis.go
+++ b/ignite/pkg/protoanalysis/protoanalysis.go
@@ -4,6 +4,7 @@ package protoanalysis
 import (
 	"context"
 	"fmt"
+	"strings"
 
 	"github.com/ignite/cli/v28/ignite/pkg/errors"
 )
@@ -11,7 +12,10 @@ import (
 // ErrImportNotFound returned when proto file import cannot be found.
 var ErrImportNotFound = errors.New("proto import not found")
 
-const protoFilePattern = "*.proto"
+const (
+	protoFilePattern = "*.proto"
+	skipInternalPath = "/internal"
+)
 
 // Parse parses proto packages by finding them with given glob pattern.
 func Parse(ctx context.Context, cache *Cache, path string) (Packages, error) {
@@ -29,6 +33,10 @@ func Parse(ctx context.Context, cache *Cache, path string) (Packages, error) {
 	var packages Packages
 
 	for _, pp := range parsed {
+		if strings.Contains(pp.dir, skipInternalPath) { // skip internal protos (mainly testing protos, etc.)
+			continue
+		}
+
 		packages = append(packages, build(*pp))
 	}
 
diff --git a/ignite/pkg/protoanalysis/protoanalysis_test.go b/ignite/pkg/protoanalysis/protoanalysis_test.go
index e239936699..8b62e50854 100644
--- a/ignite/pkg/protoanalysis/protoanalysis_test.go
+++ b/ignite/pkg/protoanalysis/protoanalysis_test.go
@@ -485,3 +485,10 @@ func TestLiquidity(t *testing.T) {
 
 	require.Equal(t, expected, packages)
 }
+
+func TestSkipInternalPath(t *testing.T) {
+	packages, err := Parse(context.Background(), nil, "testdata/internal")
+	require.NoError(t, err)
+
+	require.Len(t, packages, 0)
+}
diff --git a/ignite/pkg/protoanalysis/testdata/internal/foo.proto b/ignite/pkg/protoanalysis/testdata/internal/foo.proto
new file mode 100644
index 0000000000..410bfdea02
--- /dev/null
+++ b/ignite/pkg/protoanalysis/testdata/internal/foo.proto
@@ -0,0 +1 @@
+syntax = "proto3";
diff --git a/ignite/templates/app/files/buf.work.yaml b/ignite/templates/app/files/buf.work.yaml
index 1b4a0d95c2..1878b341be 100644
--- a/ignite/templates/app/files/buf.work.yaml
+++ b/ignite/templates/app/files/buf.work.yaml
@@ -1,8 +1,3 @@
-# Generated by "buf config migrate-v1beta1". Edit as necessary, and
-# remove this comment when you're finished.
-#
-# This workspace file points to the roots found in your
-# previous "buf.yaml" configuration.
 version: v1
 directories:
   - proto