diff --git a/CHANGELOG.md b/CHANGELOG.md
index 06a5b4824..7c8623bb0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -44,6 +44,7 @@
 - [\#967](https://github.com/cosmos/evm/pull/967) Fix return value of erc20 ibcv2 middleware to properly reflect application success and middleware failure.
 - [\#992](https://github.com/cosmos/evm/pull/992) Respect the provided `gasCap` in `CallEVMWithData` instead of always used the default cap.
 - [\#993](https://github.com/cosmos/evm/pull/993) Enforce `src_callback` contract address to match the packet sender for IBC acknowledgement and timeout callbacks to prevent arbitrary contract execution.
+- [\#1062](https://github.com/cosmos/evm/pull/1062) Use cache context in timeout ibc callback gas accounting.
 
 ## v0.6.0
 
diff --git a/x/ibc/callbacks/keeper/keeper.go b/x/ibc/callbacks/keeper/keeper.go
index 7549bfb10..100d4054d 100644
--- a/x/ibc/callbacks/keeper/keeper.go
+++ b/x/ibc/callbacks/keeper/keeper.go
@@ -425,7 +425,7 @@ func (k ContractKeeper) IBCOnTimeoutPacketCallback(
 		WithGasMeter(evmtypes.NewInfiniteGasMeterWithLimit(cbData.CommitGasLimit))
 	stateDB := statedb.New(cachedCtx, k.evmKeeper, statedb.NewEmptyTxConfig())
 
-	res, err := k.evmKeeper.CallEVM(ctx, stateDB, callbacksabi.ABI, sender, contractAddr, true, false, math.NewIntFromUint64(cachedCtx.GasMeter().GasRemaining()).BigInt(), "onPacketTimeout",
+	res, err := k.evmKeeper.CallEVM(cachedCtx, stateDB, callbacksabi.ABI, sender, contractAddr, true, false, math.NewIntFromUint64(cachedCtx.GasMeter().GasRemaining()).BigInt(), "onPacketTimeout",
 		packet.GetSourceChannel(), packet.GetSourcePort(), packet.GetSequence(), packet.GetData())
 	if err != nil {
 		return errorsmod.Wrapf(types.ErrCallbackFailed, "EVM returned error: %s", err.Error())