diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0511080de717..f9eda5b6fba7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -112,6 +112,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (x/auth) [#15867](https://github.com/cosmos/cosmos-sdk/pull/15867) Support better logging for signature verification failure.
 * (types/query) [#16041](https://github.com/cosmos/cosmos-sdk/pull/16041) change pagination max limit to a variable in order to be modifed by application devs
 * (server) [#16061](https://github.com/cosmos/cosmos-sdk/pull/16061) add comet bootstrap command
+* (x/staking) [#16068](https://github.com/cosmos/cosmos-sdk/pull/16068) Update simulation to allow non-EOA accounts to stake
 * (store) [#16067](https://github.com/cosmos/cosmos-sdk/pull/16067) Add local snapshots management commands.
 
 ### State Machine Breaking
diff --git a/x/staking/simulation/operations.go b/x/staking/simulation/operations.go
index adfda8fccfd5..a74a3642bab9 100644
--- a/x/staking/simulation/operations.go
+++ b/x/staking/simulation/operations.go
@@ -392,9 +392,9 @@ func SimulateMsgUndelegate(
 				break
 			}
 		}
-		// if simaccount.PrivKey == nil, delegation address does not exist in accs. Return error
+		// if simaccount.PrivKey == nil, delegation address does not exist in accs. However, since smart contracts and module accounts can stake, we can ignore the error
 		if simAccount.PrivKey == nil {
-			return simtypes.NoOpMsg(types.ModuleName, sdk.MsgTypeURL(msg), "account private key is nil"), nil, fmt.Errorf("delegation addr: %s does not exist in simulation accounts", delAddr)
+			return simtypes.NoOpMsg(types.ModuleName, sdk.MsgTypeURL(msg), "account private key is nil"), nil, nil
 		}
 
 		account := ak.GetAccount(ctx, delAddr)
@@ -581,9 +581,9 @@ func SimulateMsgBeginRedelegate(
 			}
 		}
 
-		// if simaccount.PrivKey == nil, delegation address does not exist in accs. Return error
+		// if simaccount.PrivKey == nil, delegation address does not exist in accs. However, since smart contracts and module accounts can stake, we can ignore the error
 		if simAccount.PrivKey == nil {
-			return simtypes.NoOpMsg(types.ModuleName, msgType, "account private key is nil"), nil, fmt.Errorf("delegation addr: %s does not exist in simulation accounts", delAddr)
+			return simtypes.NoOpMsg(types.ModuleName, msgType, "account private key is nil"), nil, nil
 		}
 
 		account := ak.GetAccount(ctx, delAddr)