diff --git a/testutil/sample/observer.go b/testutil/sample/observer.go
index a89e15c9c0..d80314851f 100644
--- a/testutil/sample/observer.go
+++ b/testutil/sample/observer.go
@@ -113,6 +113,31 @@ func ChainParams(chainID int64) *types.ChainParams {
 	}
 }
 
+func ChainParamsFromRand(r *rand.Rand, chainID int64) *types.ChainParams {
+	fiftyPercent, err := sdk.NewDecFromStr("0.5")
+	if err != nil {
+		return nil
+	}
+
+	return &types.ChainParams{
+		ChainId:           chainID,
+		ConfirmationCount: r.Uint64(),
+
+		GasPriceTicker:              Uint64InRange(1, 300),
+		InboundTicker:               Uint64InRange(1, 300),
+		OutboundTicker:              Uint64InRange(1, 300),
+		WatchUtxoTicker:             Uint64InRange(1, 300),
+		ZetaTokenContractAddress:    EthAddress().String(),
+		ConnectorContractAddress:    EthAddress().String(),
+		Erc20CustodyContractAddress: EthAddress().String(),
+		OutboundScheduleInterval:    Int64InRange(1, 100),
+		OutboundScheduleLookahead:   Int64InRange(1, 500),
+		BallotThreshold:             fiftyPercent,
+		MinObserverDelegation:       sdk.NewDec(r.Int63()),
+		IsSupported:                 true,
+	}
+}
+
 func ChainParamsSupported(chainID int64) *types.ChainParams {
 	cp := ChainParams(chainID)
 	cp.IsSupported = true
diff --git a/x/observer/simulation/operation_update_chain_params.go b/x/observer/simulation/operation_update_chain_params.go
new file mode 100644
index 0000000000..c921a6b4f3
--- /dev/null
+++ b/x/observer/simulation/operation_update_chain_params.go
@@ -0,0 +1,78 @@
+package simulation
+
+import (
+	"math/rand"
+
+	"github.com/cosmos/cosmos-sdk/baseapp"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	moduletestutil "github.com/cosmos/cosmos-sdk/types/module/testutil"
+	simtypes "github.com/cosmos/cosmos-sdk/types/simulation"
+	"github.com/cosmos/cosmos-sdk/x/simulation"
+	"github.com/zeta-chain/node/testutil/sample"
+	"github.com/zeta-chain/node/x/observer/keeper"
+	"github.com/zeta-chain/node/x/observer/types"
+)
+
+// SimulateMsgUpdateChainParams generates a MsgUpdateChainParams and delivers it.
+func SimulateMsgUpdateChainParams(k keeper.Keeper) simtypes.Operation {
+	return func(r *rand.Rand, app *baseapp.BaseApp, ctx sdk.Context, accounts []simtypes.Account, _ string,
+	) (OperationMsg simtypes.OperationMsg, futureOps []simtypes.FutureOperation, err error) {
+		policyAccount, err := GetPolicyAccount(ctx, k.GetAuthorityKeeper(), accounts)
+		if err != nil {
+			return simtypes.NoOpMsg(types.ModuleName, types.TypeMsgUpdateChainParams, err.Error()), nil, nil
+		}
+
+		authAccount := k.GetAuthKeeper().GetAccount(ctx, policyAccount.Address)
+		spendable := k.GetBankKeeper().SpendableCoins(ctx, authAccount.GetAddress())
+
+		supportedChains := k.GetSupportedChains(ctx)
+		if len(supportedChains) == 0 {
+			return simtypes.NoOpMsg(
+				types.ModuleName,
+				types.TypeMsgUpdateChainParams,
+				"no supported chains found",
+			), nil, nil
+		}
+
+		randomChainId := int64(0)
+		// remove zeta chain from the supported chains
+		for {
+			c := supportedChains[r.Intn(len(supportedChains))]
+			if !c.IsZetaChain() {
+				randomChainId = c.ChainId
+				break
+			}
+		}
+
+		// pick a random chain from the supported chains
+
+		cp := sample.ChainParamsFromRand(r, randomChainId)
+
+		msg := types.MsgUpdateChainParams{
+			Creator:     policyAccount.Address.String(),
+			ChainParams: cp,
+		}
+
+		err = msg.ValidateBasic()
+		if err != nil {
+			return simtypes.NoOpMsg(types.ModuleName, msg.Type(), err.Error()), nil, err
+		}
+
+		txCtx := simulation.OperationInput{
+			R:               r,
+			App:             app,
+			TxGen:           moduletestutil.MakeTestEncodingConfig().TxConfig,
+			Cdc:             nil,
+			Msg:             &msg,
+			MsgType:         msg.Type(),
+			Context:         ctx,
+			SimAccount:      policyAccount,
+			AccountKeeper:   k.GetAuthKeeper(),
+			Bankkeeper:      k.GetBankKeeper(),
+			ModuleName:      types.ModuleName,
+			CoinsSpentInMsg: spendable,
+		}
+
+		return simulation.GenAndDeliverTxWithRandFees(txCtx)
+	}
+}
diff --git a/x/observer/simulation/operations.go b/x/observer/simulation/operations.go
index 3ad588736a..4e1d08f3a9 100644
--- a/x/observer/simulation/operations.go
+++ b/x/observer/simulation/operations.go
@@ -129,6 +129,11 @@ func WeightedOperations(
 			weightMsgTypeMsgUpdateKeygen,
 			SimulateMsgUpdateKeygen(k),
 		),
+
+		simulation.NewWeightedOperation(
+			weightMsgTypeMsgUpdateChainParams,
+			SimulateMsgUpdateChainParams(k),
+		),
 	}
 
 }