diff --git a/app/app.go b/app/app.go
index aecafcd9..60a4aa1e 100644
--- a/app/app.go
+++ b/app/app.go
@@ -162,6 +162,7 @@ import (
 	v420 "github.com/White-Whale-Defi-Platform/migaloo-chain/v4/app/upgrades/v4_2_0"
 	v422 "github.com/White-Whale-Defi-Platform/migaloo-chain/v4/app/upgrades/v4_2_2"
 	v424 "github.com/White-Whale-Defi-Platform/migaloo-chain/v4/app/upgrades/v4_2_4"
+	v425 "github.com/White-Whale-Defi-Platform/migaloo-chain/v4/app/upgrades/v4_2_5"
 	"github.com/rakyll/statik/fs"
 
 	// unnamed import of statik for swagger UI support
@@ -1210,6 +1211,14 @@ func (app *MigalooApp) setupUpgradeHandlers() {
 			app.configurator,
 		),
 	)
+	app.UpgradeKeeper.SetUpgradeHandler(
+		v425.UpgradeName,
+		v425.CreateUpgradeHandler(
+			app.mm,
+			app.StakingKeeper,
+			app.configurator,
+		),
+	)
 
 	// When a planned update height is reached, the old binary will panic
 	// writing on disk the height and name of the update that triggered it
@@ -1223,7 +1232,7 @@ func (app *MigalooApp) setupUpgradeHandlers() {
 		return
 	}
 
-	if upgradeInfo.Name == v424.UpgradeName {
+	if upgradeInfo.Name == v425.UpgradeName {
 		storeUpgrades := &storetypes.StoreUpgrades{
 			Added:   []string{},
 			Deleted: []string{},
diff --git a/app/upgrades/v4_2_5/constants.go b/app/upgrades/v4_2_5/constants.go
new file mode 100644
index 00000000..2b8b726a
--- /dev/null
+++ b/app/upgrades/v4_2_5/constants.go
@@ -0,0 +1,7 @@
+package v4
+
+// UpgradeName defines the on-chain upgrade name for the Migaloo v4.2.5 upgrade.
+// this upgrade includes the fix for pfm
+const (
+	UpgradeName = "v4.2.5"
+)
diff --git a/app/upgrades/v4_2_5/upgrades.go b/app/upgrades/v4_2_5/upgrades.go
new file mode 100644
index 00000000..90f968c0
--- /dev/null
+++ b/app/upgrades/v4_2_5/upgrades.go
@@ -0,0 +1,19 @@
+package v4
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	stakingKeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+)
+
+// CreateUpgradeHandler that migrates the chain from v4.2.4 to v4.2.5
+func CreateUpgradeHandler(
+	mm *module.Manager,
+	_ *stakingKeeper.Keeper,
+	configurator module.Configurator,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		return mm.RunMigrations(ctx, configurator, fromVM)
+	}
+}
diff --git a/go.mod b/go.mod
index 09f28c0f..91f920a9 100644
--- a/go.mod
+++ b/go.mod
@@ -49,7 +49,7 @@ require (
 
 require (
 	cosmossdk.io/errors v1.0.1
-	github.com/CosmWasm/wasmvm v1.5.4
+	github.com/CosmWasm/wasmvm v1.5.5
 	github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v7 v7.1.3
 	github.com/cosmos/ibc-apps/modules/async-icq/v7 v7.1.1
 	github.com/golang/protobuf v1.5.4
diff --git a/go.sum b/go.sum
index c652d9b6..c8de22df 100644
--- a/go.sum
+++ b/go.sum
@@ -211,8 +211,8 @@ github.com/ChainSafe/go-schnorrkel v1.0.0 h1:3aDA67lAykLaG1y3AOjs88dMxC88PgUuHRr
 github.com/ChainSafe/go-schnorrkel v1.0.0/go.mod h1:dpzHYVxLZcp8pjlV+O+UR8K0Hp/z7vcchBSbMBEhCw4=
 github.com/CosmWasm/wasmd v0.46.0 h1:78kmiobbVE8JWBcM+ssxiFV2cS+4l9lmZQqPAQ0mA04=
 github.com/CosmWasm/wasmd v0.46.0/go.mod h1:BZFz+CFGdLNGomshb3IeccFyD4R+XbnS/mXpytOUyTA=
-github.com/CosmWasm/wasmvm v1.5.4 h1:Opqy65ubJ8bMsT08dn85VjRdsLJVPIAgIXif92qOMGc=
-github.com/CosmWasm/wasmvm v1.5.4/go.mod h1:Q0bSEtlktzh7W2hhEaifrFp1Erx11ckQZmjq8FLCyys=
+github.com/CosmWasm/wasmvm v1.5.5 h1:XlZI3xO5iUhiBqMiyzsrWEfUtk5gcBMNYIdHnsTB+NI=
+github.com/CosmWasm/wasmvm v1.5.5/go.mod h1:Q0bSEtlktzh7W2hhEaifrFp1Erx11ckQZmjq8FLCyys=
 github.com/DataDog/datadog-go v3.2.0+incompatible/go.mod h1:LButxg5PwREeZtORoXG3tL4fMGNddJ+vMq1mwgfaqoQ=
 github.com/DataDog/zstd v1.5.2 h1:vUG4lAyuPCXO0TLbXvPv7EB7cNK1QV/luu55UHLrrn8=
 github.com/DataDog/zstd v1.5.2/go.mod h1:g4AWEaM3yOg3HYfnJ3YIawPnVdXJh9QME85blwSAmyw=
diff --git a/scripts/upgrade_test.sh b/scripts/upgrade_test.sh
index 5c3a7974..b6adcd13 100755
--- a/scripts/upgrade_test.sh
+++ b/scripts/upgrade_test.sh
@@ -3,13 +3,13 @@
 # the upgrade is a fork, "true" otherwise
 FORK=${FORK:-"false"}
 
-OLD_VERSION=v4.2.2
+OLD_VERSION=v4.2.4
 UPGRADE_WAIT=${UPGRADE_WAIT:-20}
 HOME=mytestnet
 ROOT=$(pwd)
 DENOM=uwhale
 CHAIN_ID=localmigaloo
-SOFTWARE_UPGRADE_NAME="v4.2.4"
+SOFTWARE_UPGRADE_NAME="v4.2.5"
 ADDITIONAL_PRE_SCRIPTS=${ADDITIONAL_PRE_SCRIPTS:-""}
 ADDITIONAL_AFTER_SCRIPTS=${ADDITIONAL_AFTER_SCRIPTS:-""}