diff --git a/CHANGELOG.md b/CHANGELOG.md
index 352362c6545c..5d70a8118662 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -66,6 +66,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (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) [#18383](https://github.com/cosmos/cosmos-sdk/pull/18383) Fixed a data race inside BaseApp.getContext, found by end-to-end (e2e) tests.
 * (client/server) [#18345](https://github.com/cosmos/cosmos-sdk/pull/18345) Consistently set viper prefix in client and server. It defaults for the binary name for both client and server.
diff --git a/client/tx/aux_builder_test.go b/client/tx/aux_builder_test.go
index 4758247f9e86..aa2bf7751d20 100644
--- a/client/tx/aux_builder_test.go
+++ b/client/tx/aux_builder_test.go
@@ -1,11 +1,10 @@
-package tx_test
+package tx
 
 import (
 	"testing"
 
 	"github.com/stretchr/testify/require"
 
-	"github.com/cosmos/cosmos-sdk/client/tx"
 	"github.com/cosmos/cosmos-sdk/codec"
 	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
 	cryptotypes "github.com/cosmos/cosmos-sdk/crypto/types"
@@ -26,7 +25,7 @@ func TestAuxTxBuilder(t *testing.T) {
 	// required for test case: "GetAuxSignerData works for DIRECT_AUX"
 	counterModule.RegisterInterfaces(reg)
 
-	var b tx.AuxTxBuilder
+	var b AuxTxBuilder
 
 	testcases := []struct {
 		name      string
@@ -200,7 +199,7 @@ func TestAuxTxBuilder(t *testing.T) {
 	for _, tc := range testcases {
 		tc := tc
 		t.Run(tc.name, func(t *testing.T) {
-			b = tx.NewAuxTxBuilder()
+			b = NewAuxTxBuilder()
 			err := tc.malleate()
 
 			if tc.expErr {
diff --git a/client/tx/factory.go b/client/tx/factory.go
index 02f6a41e159d..e3ca6041d9e0 100644
--- a/client/tx/factory.go
+++ b/client/tx/factory.go
@@ -15,6 +15,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/client/flags"
 	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
 	"github.com/cosmos/cosmos-sdk/crypto/keyring"
+	"github.com/cosmos/cosmos-sdk/crypto/keys/multisig"
 	"github.com/cosmos/cosmos-sdk/crypto/keys/secp256k1"
 	cryptotypes "github.com/cosmos/cosmos-sdk/crypto/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -33,6 +34,7 @@ type Factory struct {
 	timeoutHeight      uint64
 	gasAdjustment      float64
 	chainID            string
+	fromName           string
 	offline            bool
 	generateOnly       bool
 	memo               string
@@ -92,6 +94,7 @@ func NewFactoryCLI(clientCtx client.Context, flagSet *pflag.FlagSet) (Factory, e
 		accountRetriever:   clientCtx.AccountRetriever,
 		keybase:            clientCtx.Keyring,
 		chainID:            clientCtx.ChainID,
+		fromName:           clientCtx.FromName,
 		offline:            clientCtx.Offline,
 		generateOnly:       clientCtx.GenerateOnly,
 		gas:                gasSetting.Gas,
@@ -406,10 +409,8 @@ func (f Factory) BuildSimTx(msgs ...sdk.Msg) ([]byte, error) {
 	// Create an empty signature literal as the ante handler will populate with a
 	// sentinel pubkey.
 	sig := signing.SignatureV2{
-		PubKey: pk,
-		Data: &signing.SingleSignatureData{
-			SignMode: f.signMode,
-		},
+		PubKey:   pk,
+		Data:     f.getSimSignatureData(pk),
 		Sequence: f.Sequence(),
 	}
 	if err := txb.SetSignatures(sig); err != nil {
@@ -435,16 +436,13 @@ func (f Factory) getSimPK() (cryptotypes.PubKey, error) {
 		pk cryptotypes.PubKey = &secp256k1.PubKey{} // use default public key type
 	)
 
-	// Use the first element from the list of keys in order to generate a valid
-	// pubkey that supports multiple algorithms.
 	if f.simulateAndExecute && f.keybase != nil {
-		records, _ := f.keybase.List()
-		if len(records) == 0 {
-			return nil, errors.New("cannot build signature for simulation, key records slice is empty")
+		record, err := f.keybase.Key(f.fromName)
+		if err != nil {
+			return nil, err
 		}
 
-		// take the first record just for simulation purposes
-		pk, ok = records[0].PubKey.GetCachedValue().(cryptotypes.PubKey)
+		pk, ok = record.PubKey.GetCachedValue().(cryptotypes.PubKey)
 		if !ok {
 			return nil, errors.New("cannot build signature for simulation, failed to convert proto Any to public key")
 		}
@@ -453,6 +451,26 @@ func (f Factory) getSimPK() (cryptotypes.PubKey, error) {
 	return pk, nil
 }
 
+// getSimSignatureData based on the pubKey type gets the correct SignatureData type
+// to use for building a simulation tx.
+func (f Factory) getSimSignatureData(pk cryptotypes.PubKey) signing.SignatureData {
+	multisigPubKey, ok := pk.(*multisig.LegacyAminoPubKey)
+	if !ok {
+		return &signing.SingleSignatureData{SignMode: f.signMode}
+	}
+
+	multiSignatureData := make([]signing.SignatureData, 0, multisigPubKey.Threshold)
+	for i := uint32(0); i < multisigPubKey.Threshold; i++ {
+		multiSignatureData = append(multiSignatureData, &signing.SingleSignatureData{
+			SignMode: f.SignMode(),
+		})
+	}
+
+	return &signing.MultiSignatureData{
+		Signatures: multiSignatureData,
+	}
+}
+
 // Prepare ensures the account defined by ctx.GetFromAddress() exists and
 // if the account number and/or the account sequence number are zero (not set),
 // they will be queried for and set on the provided Factory.
diff --git a/client/tx/factory_test.go b/client/tx/factory_test.go
index 3b055781bd0b..402d178a98dc 100644
--- a/client/tx/factory_test.go
+++ b/client/tx/factory_test.go
@@ -1,4 +1,4 @@
-package tx_test
+package tx
 
 import (
 	"testing"
@@ -6,30 +6,114 @@ import (
 	"github.com/stretchr/testify/require"
 
 	"github.com/cosmos/cosmos-sdk/client"
-	"github.com/cosmos/cosmos-sdk/client/tx"
+	"github.com/cosmos/cosmos-sdk/codec"
+	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
+	cryptocodec "github.com/cosmos/cosmos-sdk/crypto/codec"
+	"github.com/cosmos/cosmos-sdk/crypto/hd"
+	"github.com/cosmos/cosmos-sdk/crypto/keyring"
+	"github.com/cosmos/cosmos-sdk/crypto/keys/multisig"
+	"github.com/cosmos/cosmos-sdk/crypto/keys/secp256k1"
+	"github.com/cosmos/cosmos-sdk/crypto/types"
+	"github.com/cosmos/cosmos-sdk/testutil/testdata"
+	"github.com/cosmos/cosmos-sdk/types/tx/signing"
 )
 
-func TestFactoryPrepate(t *testing.T) {
+func TestFactoryPrepare(t *testing.T) {
 	t.Parallel()
 
-	factory := tx.Factory{}
+	factory := Factory{}
 	clientCtx := client.Context{}
 
 	output, err := factory.Prepare(clientCtx.WithOffline(true))
 	require.NoError(t, err)
 	require.Equal(t, output, factory)
 
-	factory = tx.Factory{}.WithAccountRetriever(client.MockAccountRetriever{ReturnAccNum: 10, ReturnAccSeq: 1}).WithAccountNumber(5)
+	factory = Factory{}.WithAccountRetriever(client.MockAccountRetriever{ReturnAccNum: 10, ReturnAccSeq: 1}).WithAccountNumber(5)
 	output, err = factory.Prepare(clientCtx.WithFrom("foo"))
 	require.NoError(t, err)
 	require.NotEqual(t, output, factory)
 	require.Equal(t, output.AccountNumber(), uint64(5))
 	require.Equal(t, output.Sequence(), uint64(1))
 
-	factory = tx.Factory{}.WithAccountRetriever(client.MockAccountRetriever{ReturnAccNum: 10, ReturnAccSeq: 1})
+	factory = Factory{}.WithAccountRetriever(client.MockAccountRetriever{ReturnAccNum: 10, ReturnAccSeq: 1})
 	output, err = factory.Prepare(clientCtx.WithFrom("foo"))
 	require.NoError(t, err)
 	require.NotEqual(t, output, factory)
 	require.Equal(t, output.AccountNumber(), uint64(10))
 	require.Equal(t, output.Sequence(), uint64(1))
 }
+
+func TestFactory_getSimPKType(t *testing.T) {
+	// setup keyring
+	registry := codectypes.NewInterfaceRegistry()
+	cryptocodec.RegisterInterfaces(registry)
+	k := keyring.NewInMemory(codec.NewProtoCodec(registry))
+
+	tests := []struct {
+		name     string
+		fromName string
+		genKey   func(fromName string, k keyring.Keyring) error
+		wantType types.PubKey
+	}{
+		{
+			name:     "simple key",
+			fromName: "testKey",
+			genKey: func(fromName string, k keyring.Keyring) error {
+				_, err := k.NewAccount(fromName, testdata.TestMnemonic, "", "", hd.Secp256k1)
+				return err
+			},
+			wantType: (*secp256k1.PubKey)(nil),
+		},
+		{
+			name:     "multisig key",
+			fromName: "multiKey",
+			genKey: func(fromName string, k keyring.Keyring) error {
+				pk := multisig.NewLegacyAminoPubKey(1, []types.PubKey{&multisig.LegacyAminoPubKey{}})
+				_, err := k.SaveMultisig(fromName, pk)
+				return err
+			},
+			wantType: (*multisig.LegacyAminoPubKey)(nil),
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			err := tt.genKey(tt.fromName, k)
+			require.NoError(t, err)
+			f := Factory{
+				keybase:            k,
+				fromName:           tt.fromName,
+				simulateAndExecute: true,
+			}
+			got, err := f.getSimPK()
+			require.NoError(t, err)
+			require.IsType(t, tt.wantType, got)
+		})
+	}
+}
+
+func TestFactory_getSimSignatureData(t *testing.T) {
+	tests := []struct {
+		name     string
+		pk       types.PubKey
+		wantType any
+	}{
+		{
+			name:     "simple pubkey",
+			pk:       &secp256k1.PubKey{},
+			wantType: (*signing.SingleSignatureData)(nil),
+		},
+		{
+			name:     "multisig pubkey",
+			pk:       &multisig.LegacyAminoPubKey{},
+			wantType: (*signing.MultiSignatureData)(nil),
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := Factory{}.getSimSignatureData(tt.pk)
+			require.IsType(t, tt.wantType, got)
+		})
+	}
+}
diff --git a/client/tx/legacy_test.go b/client/tx/legacy_test.go
index 15aac031523e..cd7a64776fa4 100644
--- a/client/tx/legacy_test.go
+++ b/client/tx/legacy_test.go
@@ -1,4 +1,4 @@
-package tx_test
+package tx
 
 import (
 	"github.com/cosmos/cosmos-sdk/testutil/testdata"
diff --git a/client/tx/tx_test.go b/client/tx/tx_test.go
index 340fbc804349..384c2177d650 100644
--- a/client/tx/tx_test.go
+++ b/client/tx/tx_test.go
@@ -1,4 +1,4 @@
-package tx_test
+package tx
 
 import (
 	"context"
@@ -9,12 +9,11 @@ import (
 	"github.com/stretchr/testify/require"
 	"google.golang.org/grpc"
 
-	ante "cosmossdk.io/x/auth/ante"
+	"cosmossdk.io/x/auth/ante"
 	"cosmossdk.io/x/auth/signing"
 	authtx "cosmossdk.io/x/auth/tx"
 
 	"github.com/cosmos/cosmos-sdk/client"
-	"github.com/cosmos/cosmos-sdk/client/tx"
 	"github.com/cosmos/cosmos-sdk/codec"
 	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
 	"github.com/cosmos/cosmos-sdk/crypto/hd"
@@ -81,7 +80,7 @@ func TestCalculateGas(t *testing.T) {
 		defaultSignMode, err := signing.APISignModeToInternal(txCfg.SignModeHandler().DefaultMode())
 		require.NoError(t, err)
 
-		txf := tx.Factory{}.
+		txf := Factory{}.
 			WithChainID("test-chain").
 			WithTxConfig(txCfg).WithSignMode(defaultSignMode)
 
@@ -90,7 +89,7 @@ func TestCalculateGas(t *testing.T) {
 				gasUsed: tc.args.mockGasUsed,
 				wantErr: tc.args.mockWantErr,
 			}
-			simRes, gotAdjusted, err := tx.CalculateGas(mockClientCtx, txf.WithGasAdjustment(stc.args.adjustment))
+			simRes, gotAdjusted, err := CalculateGas(mockClientCtx, txf.WithGasAdjustment(stc.args.adjustment))
 			if stc.expPass {
 				require.NoError(t, err)
 				require.Equal(t, simRes.GasInfo.GasUsed, stc.wantEstimate)
@@ -104,8 +103,8 @@ func TestCalculateGas(t *testing.T) {
 	}
 }
 
-func mockTxFactory(txCfg client.TxConfig) tx.Factory {
-	return tx.Factory{}.
+func mockTxFactory(txCfg client.TxConfig) Factory {
+	return Factory{}.
 		WithTxConfig(txCfg).
 		WithAccountNumber(50).
 		WithSequence(23).
@@ -196,7 +195,7 @@ func TestMnemonicInMemo(t *testing.T) {
 
 	for _, tc := range testCases {
 		t.Run(tc.name, func(t *testing.T) {
-			txf := tx.Factory{}.
+			txf := Factory{}.
 				WithTxConfig(txConfig).
 				WithAccountNumber(50).
 				WithSequence(23).
@@ -267,7 +266,7 @@ func TestSign(t *testing.T) {
 
 	testCases := []struct {
 		name         string
-		txf          tx.Factory
+		txf          Factory
 		txb          client.TxBuilder
 		from         string
 		overwrite    bool
@@ -354,7 +353,7 @@ func TestSign(t *testing.T) {
 	var prevSigs []signingtypes.SignatureV2
 	for _, tc := range testCases {
 		t.Run(tc.name, func(t *testing.T) {
-			err = tx.Sign(context.TODO(), tc.txf, tc.from, tc.txb, tc.overwrite)
+			err = Sign(context.TODO(), tc.txf, tc.from, tc.txb, tc.overwrite)
 			if len(tc.expectedPKs) == 0 {
 				requireT.Error(err)
 			} else {
@@ -409,7 +408,7 @@ func TestPreprocessHook(t *testing.T) {
 	txb, err := txfDirect.BuildUnsignedTx(msg1, msg2)
 	requireT.NoError(err)
 
-	err = tx.Sign(context.TODO(), txfDirect, from, txb, false)
+	err = Sign(context.TODO(), txfDirect, from, txb, false)
 	requireT.NoError(err)
 
 	// Run preprocessing