diff --git a/modules/core/04-channel/v2/keeper/packet.go b/modules/core/04-channel/v2/keeper/packet.go
index 136b5b01940..85594a745cc 100644
--- a/modules/core/04-channel/v2/keeper/packet.go
+++ b/modules/core/04-channel/v2/keeper/packet.go
@@ -32,8 +32,7 @@ func (k *Keeper) sendPacket(
 
 	sequence, found := k.GetNextSequenceSend(ctx, sourceClient)
 	if !found {
-		// initialize sequnce to 1 if it does not exist
-		sequence = 1
+		return 0, "", errorsmod.Wrapf(types.ErrSequenceSendNotFound, "source client: %s", sourceClient)
 	}
 
 	// construct packet from given fields and channel state
diff --git a/modules/core/keeper/msg_server.go b/modules/core/keeper/msg_server.go
index 3030014944e..5bb96f2dff4 100644
--- a/modules/core/keeper/msg_server.go
+++ b/modules/core/keeper/msg_server.go
@@ -61,6 +61,9 @@ func (k *Keeper) RegisterCounterparty(ctx context.Context, msg *clienttypes.MsgR
 	}
 	k.ClientKeeper.SetClientCounterparty(ctx, msg.ClientId, counterpartyInfo)
 
+	// initialize next sequence send to enable packet flow
+	k.ChannelKeeperV2.SetNextSequenceSend(ctx, msg.ClientId, 1)
+
 	k.ClientKeeper.DeleteClientCreator(ctx, msg.ClientId)
 	return &clienttypes.MsgRegisterCounterpartyResponse{}, nil
 }
diff --git a/modules/core/keeper/msg_server_test.go b/modules/core/keeper/msg_server_test.go
index f913b9eb9d2..480c06a5d73 100644
--- a/modules/core/keeper/msg_server_test.go
+++ b/modules/core/keeper/msg_server_test.go
@@ -79,6 +79,9 @@ func (suite *KeeperTestSuite) TestRegisterCounterparty() {
 				counterpartyInfo, ok := suite.chainA.App.GetIBCKeeper().ClientKeeper.GetClientCounterparty(suite.chainA.GetContext(), path.EndpointA.ClientID)
 				suite.Require().True(ok)
 				suite.Require().Equal(counterpartyInfo, clienttypes.NewCounterpartyInfo(merklePrefix, path.EndpointB.ClientID))
+				nextSeqSend, ok := suite.chainA.App.GetIBCKeeper().ChannelKeeperV2.GetNextSequenceSend(suite.chainA.GetContext(), path.EndpointA.ClientID)
+				suite.Require().True(ok)
+				suite.Require().Equal(nextSeqSend, uint64(1))
 				creator := suite.chainA.App.GetIBCKeeper().ClientKeeper.GetClientCreator(suite.chainA.GetContext(), path.EndpointA.ClientID)
 				suite.Require().Empty(creator)
 			}