diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3c6cfbc258..b0fc34065f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## UNRELEASED
 
+### Bug Fixes
+
+* (iavl)[#1673](https://github.com/crypto-org-chain/cronos/pull/1673) Update iavl dependency to include pruning fix.
+
 ### Features
 
 * [#1665](https://github.com/crypto-org-chain/cronos/pull/1665) Support register for payee and counterpartyPayee in relayer precompile.
diff --git a/go.mod b/go.mod
index ae8fbc0741..45512dbc29 100644
--- a/go.mod
+++ b/go.mod
@@ -91,7 +91,8 @@ require (
 	github.com/cosmos/cosmos-proto v1.0.0-beta.5 // indirect
 	github.com/cosmos/go-bip39 v1.0.0 // indirect
 	github.com/cosmos/gogogateway v1.2.0 // indirect
-	github.com/cosmos/iavl v1.2.0 // indirect
+	// release/v1.2.x
+	github.com/cosmos/iavl v1.2.1-0.20240731145221-594b181f427e // indirect
 	github.com/cosmos/ics23/go v0.11.0 // indirect
 	github.com/cosmos/ledger-cosmos-go v0.13.3 // indirect
 	github.com/cosmos/rosetta-sdk-go v0.10.0 // indirect
diff --git a/go.sum b/go.sum
index 591e9a60ef..82a8cc6cfb 100644
--- a/go.sum
+++ b/go.sum
@@ -391,8 +391,8 @@ github.com/cosmos/gogogateway v1.2.0/go.mod h1:iQpLkGWxYcnCdz5iAdLcRBSw3h7NXeOkZ
 github.com/cosmos/gogoproto v1.4.2/go.mod h1:cLxOsn1ljAHSV527CHOtaIP91kK6cCrZETRBrkzItWU=
 github.com/cosmos/gogoproto v1.7.0 h1:79USr0oyXAbxg3rspGh/m4SWNyoz/GLaAh0QlCe2fro=
 github.com/cosmos/gogoproto v1.7.0/go.mod h1:yWChEv5IUEYURQasfyBW5ffkMHR/90hiHgbNgrtp4j0=
-github.com/cosmos/iavl v1.2.0 h1:kVxTmjTh4k0Dh1VNL046v6BXqKziqMDzxo93oh3kOfM=
-github.com/cosmos/iavl v1.2.0/go.mod h1:HidWWLVAtODJqFD6Hbne2Y0q3SdxByJepHUOeoH4LiI=
+github.com/cosmos/iavl v1.2.1-0.20240731145221-594b181f427e h1:5bxw1E0peLMrr8ZO9mYT0d9sxy0WgR1ZEWb92yjKnnk=
+github.com/cosmos/iavl v1.2.1-0.20240731145221-594b181f427e/go.mod h1:GiM43q0pB+uG53mLxLDzimxM9l/5N9UuSY3/D0huuVw=
 github.com/cosmos/ibc-go/modules/apps/callbacks v0.0.0-20240913130017-6b2554360c0e h1:jMqihcJRBdpRrKGOMS1bDyyoo2JoQxv4QmMCwK3HSvI=
 github.com/cosmos/ibc-go/modules/apps/callbacks v0.0.0-20240913130017-6b2554360c0e/go.mod h1:akR14gsU5YD5S1G5I6lOI7z51OjR1vJko06Rs/3/Ym0=
 github.com/cosmos/ibc-go/modules/capability v1.0.1 h1:ibwhrpJ3SftEEZRxCRkH0fQZ9svjthrX2+oXdZvzgGI=
diff --git a/gomod2nix.toml b/gomod2nix.toml
index 426b6dab8b..5b814b0f5c 100644
--- a/gomod2nix.toml
+++ b/gomod2nix.toml
@@ -187,8 +187,8 @@ schema = 3
     version = "v1.7.0"
     hash = "sha256-ZkEUImxBBo8Q/6c7tVR0rybpLbtlplzvgfLl5xvtV00="
   [mod."github.com/cosmos/iavl"]
-    version = "v1.2.0"
-    hash = "sha256-NYSt6LOGyspP6eZXo9e5+2MFwyrWxD/rp2dRTtlWg2E="
+    version = "v1.2.1-0.20240731145221-594b181f427e"
+    hash = "sha256-zTWG6u6TgJKpkv7zkm85Ah5yZ8BpYfEEFZEwYxAEBQQ="
   [mod."github.com/cosmos/ibc-go/modules/apps/callbacks"]
     version = "v0.0.0-20240913130017-6b2554360c0e"
     hash = "sha256-mL+g8WB+fLUlTKMnrdn8rTgw2gqXsHlky3/BTsyfek0="