diff --git a/testing/simapp/app.go b/testing/simapp/app.go
index b9829f606be..5b1fffccf3f 100644
--- a/testing/simapp/app.go
+++ b/testing/simapp/app.go
@@ -108,6 +108,7 @@ import (
 	ibckeeper "github.com/cosmos/ibc-go/v5/modules/core/keeper"
 	ibcmock "github.com/cosmos/ibc-go/v5/testing/mock"
 	simappparams "github.com/cosmos/ibc-go/v5/testing/simapp/params"
+	simappupgrades "github.com/cosmos/ibc-go/v5/testing/simapp/upgrades"
 	ibctestingtypes "github.com/cosmos/ibc-go/v5/testing/types"
 )
 
@@ -623,6 +624,8 @@ func NewSimApp(
 
 	app.SetEndBlocker(app.EndBlocker)
 
+	app.setupUpgradeHandlers()
+
 	if loadLatest {
 		if err := app.LoadLatestVersion(); err != nil {
 			tmos.Exit(err.Error())
@@ -847,3 +850,11 @@ func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino
 
 	return paramsKeeper
 }
+
+// setupUpgradeHandlers sets all necessary upgrade handlers for testing purposes
+func (app *SimApp) setupUpgradeHandlers() {
+	app.UpgradeKeeper.SetUpgradeHandler(
+		simappupgrades.DefaultUpgradeName,
+		simappupgrades.CreateDefaultUpgradeHandler(app.mm, app.configurator),
+	)
+}
diff --git a/testing/simapp/upgrades/upgrades.go b/testing/simapp/upgrades/upgrades.go
new file mode 100644
index 00000000000..adc81349bdd
--- /dev/null
+++ b/testing/simapp/upgrades/upgrades.go
@@ -0,0 +1,23 @@
+package upgrades
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+)
+
+const (
+	// DefaultUpgradeName is the default upgrade name used for upgrade tests which do not require special handling.
+	DefaultUpgradeName = "normal upgrade"
+)
+
+// CreateDefaultUpgradeHandler creates an upgrade handler which can be used for regular upgrade tests
+// that do not require special logic
+func CreateDefaultUpgradeHandler(
+	mm *module.Manager,
+	configurator module.Configurator,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, vm module.VersionMap) (module.VersionMap, error) {
+		return mm.RunMigrations(ctx, configurator, vm)
+	}
+}