diff --git a/modules/core/04-channel/types/upgrade.go b/modules/core/04-channel/types/upgrade.go
index 22bdb95e595..ea3e8508389 100644
--- a/modules/core/04-channel/types/upgrade.go
+++ b/modules/core/04-channel/types/upgrade.go
@@ -83,13 +83,21 @@ func (u *UpgradeError) Error() string {
 	return u.err.Error()
 }
 
-// Is returns true if the underlying error is of the given err type.
-func (u *UpgradeError) Is(err error) bool {
-	return errors.Is(u.err, err)
+// Is returns true if the of the provided error is an upgrade error.
+func (*UpgradeError) Is(err error) bool {
+	_, ok := err.(*UpgradeError)
+	return ok
 }
 
-// Unwrap returns the base error that caused the upgrade to fail.
+// Unwrap returns the next error in the error chain.
+// If there is no next error, Unwrap returns nil.
 func (u *UpgradeError) Unwrap() error {
+	return u.err
+}
+
+// Cause implements the sdk error interface which uses this function to unwrap the error in various functions such as `wrappedError.Is()`.
+// Cause returns the underlying error which caused the upgrade to fail.
+func (u *UpgradeError) Cause() error {
 	baseError := u.err
 	for {
 		if err := errors.Unwrap(baseError); err != nil {
@@ -100,12 +108,6 @@ func (u *UpgradeError) Unwrap() error {
 	}
 }
 
-// Cause implements the sdk error interface which uses this function to unwrap the error in various functions such as `wrappedError.Is()`.
-// Cause returns the underlying error which caused the upgrade to fail.
-func (u *UpgradeError) Cause() error {
-	return u.err
-}
-
 // GetErrorReceipt returns an error receipt with the code from the underlying error type stripped.
 func (u *UpgradeError) GetErrorReceipt() ErrorReceipt {
 	// restoreErrorString defines a string constant included in error receipts.
@@ -122,14 +124,5 @@ func (u *UpgradeError) GetErrorReceipt() ErrorReceipt {
 // IsUpgradeError returns true if err is of type UpgradeError or contained
 // in the error chain of err and false otherwise.
 func IsUpgradeError(err error) bool {
-	for {
-		_, ok := err.(*UpgradeError)
-		if ok {
-			return true
-		}
-
-		if err = errors.Unwrap(err); err == nil {
-			return false
-		}
-	}
+	return errors.Is(err, &UpgradeError{})
 }
diff --git a/modules/core/04-channel/types/upgrade_test.go b/modules/core/04-channel/types/upgrade_test.go
index fdb8a90cec5..b1bb8315d46 100644
--- a/modules/core/04-channel/types/upgrade_test.go
+++ b/modules/core/04-channel/types/upgrade_test.go
@@ -159,18 +159,33 @@ func (suite *TypesTestSuite) TestGetErrorReceipt() {
 	suite.Require().Equal(upgradeError2.GetErrorReceipt().Message, upgradeError.GetErrorReceipt().Message)
 }
 
-// TestUpgradeErrorUnwrap tests that the underlying error is not modified when Unwrap is called.
+// TestUpgradeErrorUnwrap tests that the underlying error is returned by Unwrap.
 func (suite *TypesTestSuite) TestUpgradeErrorUnwrap() {
-	baseUnderlyingError := errorsmod.Wrap(types.ErrInvalidChannel, "base error")
-	wrappedErr := errorsmod.Wrap(baseUnderlyingError, "wrapped error")
-	upgradeError := types.NewUpgradeError(1, wrappedErr)
-
-	originalUpgradeError := upgradeError.Error()
-	unWrapped := errors.Unwrap(upgradeError)
-	postUnwrapUpgradeError := upgradeError.Error()
+	testCases := []struct {
+		msg          string
+		upgradeError *types.UpgradeError
+		expError     error
+	}{
+		{
+			msg:          "no underlying error",
+			upgradeError: types.NewUpgradeError(1, nil),
+			expError:     nil,
+		},
+		{
+			msg:          "underlying error",
+			upgradeError: types.NewUpgradeError(1, types.ErrInvalidUpgrade),
+			expError:     types.ErrInvalidUpgrade,
+		},
+	}
 
-	suite.Require().Equal(types.ErrInvalidChannel, unWrapped, "unwrapped error was not equal to base underlying error")
-	suite.Require().Equal(originalUpgradeError, postUnwrapUpgradeError, "original error was modified when unwrapped")
+	for _, tc := range testCases {
+		tc := tc
+		suite.Run(tc.msg, func() {
+			upgradeError := tc.upgradeError
+			err := upgradeError.Unwrap()
+			suite.Require().Equal(tc.expError, err)
+		})
+	}
 }
 
 func (suite *TypesTestSuite) TestIsUpgradeError() {