diff --git a/modules/apps/callbacks/ibc_middleware_test.go b/modules/apps/callbacks/ibc_middleware_test.go
index 74051f3942a..98a31b79918 100644
--- a/modules/apps/callbacks/ibc_middleware_test.go
+++ b/modules/apps/callbacks/ibc_middleware_test.go
@@ -1007,7 +1007,7 @@ func (s *CallbacksTestSuite) TestUnmarshalPacketDataV1() {
 		Tokens: []transfertypes.Token{
 			{
 				Denom: transfertypes.Denom{
-					Base:  ibctesting.TestCoin.Denom,
+					Base:  ibctesting.TestCoin.GetDenom(),
 					Trace: nil,
 				},
 				Amount: ibctesting.TestCoin.Amount.String(),
@@ -1043,7 +1043,7 @@ func (s *CallbacksTestSuite) TestUnmarshalPacketDataV2() {
 		Tokens: []transfertypes.Token{
 			{
 				Denom: transfertypes.Denom{
-					Base:  ibctesting.TestCoin.Denom,
+					Base:  ibctesting.TestCoin.GetDenom(),
 					Trace: nil,
 				},
 				Amount: ibctesting.TestCoin.Amount.String(),
diff --git a/modules/apps/callbacks/types/callbacks_test.go b/modules/apps/callbacks/types/callbacks_test.go
index be4098f9bc9..be01f892189 100644
--- a/modules/apps/callbacks/types/callbacks_test.go
+++ b/modules/apps/callbacks/types/callbacks_test.go
@@ -13,6 +13,7 @@ import (
 	transfertypes "github.com/cosmos/ibc-go/v8/modules/apps/transfer/types"
 	clienttypes "github.com/cosmos/ibc-go/v8/modules/core/02-client/types"
 	channeltypes "github.com/cosmos/ibc-go/v8/modules/core/04-channel/types"
+	ibcexported "github.com/cosmos/ibc-go/v8/modules/core/exported"
 	ibctesting "github.com/cosmos/ibc-go/v8/testing"
 	ibcmock "github.com/cosmos/ibc-go/v8/testing/mock"
 )
@@ -250,6 +251,287 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackData() {
 			types.CallbackData{},
 			types.ErrCallbackAddressNotFound,
 		},
+
+		{
+			"success: source callback",
+			func() {
+				remainingGas = 2_000_000
+				packetData = transfertypes.FungibleTokenPacketData{
+					Denom:    ibctesting.TestCoin.Denom,
+					Amount:   ibctesting.TestCoin.Amount.String(),
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			nil,
+		},
+		{
+			"success: destination callback",
+			func() {
+				callbackKey = types.DestinationCallbackKey
+
+				remainingGas = 2_000_000
+				packetData = transfertypes.FungibleTokenPacketData{
+					Denom:    ibctesting.TestCoin.Denom,
+					Amount:   ibctesting.TestCoin.Amount.String(),
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"dest_callback": {"address": "%s"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     "",
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			nil,
+		},
+		{
+			"success v2: destination callback with 0 user defined gas limit",
+			func() {
+				callbackKey = types.DestinationCallbackKey
+
+				remainingGas = 2_000_000
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"dest_callback": {"address": "%s", "gas_limit":"0"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     "",
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			nil,
+		},
+		{
+			"success v2: source callback with gas limit < remaining gas < max gas",
+			func() {
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s", "gas_limit": "50000"}}`, sender),
+				}
+
+				remainingGas = 100_000
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 50_000,
+				CommitGasLimit:    50_000,
+			},
+			nil,
+		},
+		{
+			"success v2: source callback with remaining gas < gas limit < max gas",
+			func() {
+				remainingGas = 100_000
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s", "gas_limit": "200000"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 100_000,
+				CommitGasLimit:    200_000,
+			},
+			nil,
+		},
+		{
+			"success v2: source callback with remaining gas < max gas < gas limit",
+			func() {
+				remainingGas = 100_000
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s", "gas_limit": "2000000"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 100_000,
+				CommitGasLimit:    1_000_000,
+			},
+			nil,
+		},
+		{
+			"success v2: destination callback with remaining gas < max gas < gas limit",
+			func() {
+				callbackKey = types.DestinationCallbackKey
+
+				remainingGas = 100_000
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"dest_callback": {"address": "%s", "gas_limit": "2000000"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     "",
+				ExecutionGasLimit: 100_000,
+				CommitGasLimit:    1_000_000,
+			},
+			nil,
+		},
+		{
+			"success v2: source callback with max gas < remaining gas < gas limit",
+			func() {
+				remainingGas = 2_000_000
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s", "gas_limit": "3000000"}}`, sender),
+				}
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			nil,
+		},
+		{
+			"failure: packet data does not implement PacketDataProvider",
+			func() {
+				packetData = ibcmock.MockPacketData
+			},
+			types.CallbackData{},
+			types.ErrNotPacketDataProvider,
+		},
+		{
+			"failure v2: empty memo",
+			func() {
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     "",
+				}
+			},
+			types.CallbackData{},
+			types.ErrCallbackKeyNotFound,
+		},
+		{
+			"failure v2: empty address",
+			func() {
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     `{"src_callback": {"address": ""}}`,
+				}
+			},
+			types.CallbackData{},
+			types.ErrCallbackAddressNotFound,
+		},
+		{
+			"failure v2: space address",
+			func() {
+				packetData = transfertypes.FungibleTokenPacketDataV2{
+					Tokens: transfertypes.Tokens{
+						{
+							Denom: transfertypes.Denom{
+								Base:  ibctesting.TestCoin.Denom,
+								Trace: nil,
+							},
+							Amount: ibctesting.TestCoin.Amount.String(),
+						},
+					},
+					Sender:   sender,
+					Receiver: receiver,
+					Memo:     `{"src_callback": {"address": " "}}`,
+				}
+			},
+			types.CallbackData{},
+			types.ErrCallbackAddressNotFound,
+		},
 	}
 
 	for _, tc := range testCases {
@@ -277,109 +559,206 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackData() {
 	}
 }
 
-func (s *CallbacksTypesTestSuite) TestGetSourceCallbackDataTransfer() {
-	s.SetupTest()
+// bytesProvider defines an interface that both packet data types implement in order to fetch the bytes.
+type bytesProvider interface {
+	GetBytes() []byte
+}
 
+func (s *CallbacksTypesTestSuite) TestGetSourceCallbackDataTransfer() {
 	sender := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 	receiver := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 
-	packetData := transfertypes.FungibleTokenPacketData{
-		Denom:    ibctesting.TestCoin.Denom,
-		Amount:   ibctesting.TestCoin.Amount.String(),
-		Sender:   sender,
-		Receiver: receiver,
-		Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s"}}`, sender),
+	testCases := []struct {
+		name            string
+		packetData      bytesProvider
+		expCallbackData types.CallbackData
+		malleate        func()
+	}{
+		{
+			"success: v1",
+			transfertypes.FungibleTokenPacketData{
+				Denom:    ibctesting.TestCoin.Denom,
+				Amount:   ibctesting.TestCoin.Amount.String(),
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s"}}`, sender),
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			func() {
+				s.path.EndpointA.ChannelConfig.Version = transfertypes.V1
+				s.path.EndpointA.ChannelConfig.PortID = transfertypes.ModuleName
+				s.path.EndpointB.ChannelConfig.Version = transfertypes.V1
+				s.path.EndpointB.ChannelConfig.PortID = transfertypes.ModuleName
+			},
+		},
+		{
+			"success: v2",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom: transfertypes.Denom{
+							Base:  ibctesting.TestCoin.Denom,
+							Trace: nil,
+						},
+						Amount: ibctesting.TestCoin.Amount.String(),
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s"}}`, sender),
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     sender,
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			func() {
+				s.path.EndpointA.ChannelConfig.Version = transfertypes.V2
+				s.path.EndpointA.ChannelConfig.PortID = transfertypes.ModuleName
+				s.path.EndpointB.ChannelConfig.Version = transfertypes.V2
+				s.path.EndpointB.ChannelConfig.PortID = transfertypes.ModuleName
+			},
+		},
 	}
-	packetDataBytes := packetData.GetBytes()
 
-	expCallbackData := types.CallbackData{
-		CallbackAddress:   sender,
-		SenderAddress:     sender,
-		ExecutionGasLimit: 1_000_000,
-		CommitGasLimit:    1_000_000,
-	}
+	for _, tc := range testCases {
+		tc := tc
+		s.Run(tc.name, func() {
+			s.SetupTest()
 
-	s.path.EndpointA.ChannelConfig.Version = transfertypes.V1
-	s.path.EndpointA.ChannelConfig.PortID = transfertypes.ModuleName
-	s.path.EndpointB.ChannelConfig.Version = transfertypes.V1
-	s.path.EndpointB.ChannelConfig.PortID = transfertypes.ModuleName
+			tc.malleate()
 
-	transferStack, ok := s.chainA.App.GetIBCKeeper().PortKeeper.Route(transfertypes.ModuleName)
-	s.Require().True(ok)
+			packetDataBytes := tc.packetData.GetBytes()
 
-	packetUnmarshaler, ok := transferStack.(types.CallbacksCompatibleModule)
-	s.Require().True(ok)
+			transferStack, ok := s.chainA.App.GetIBCKeeper().PortKeeper.Route(transfertypes.ModuleName)
+			s.Require().True(ok)
 
-	s.path.Setup()
+			packetUnmarshaler, ok := transferStack.(types.CallbacksCompatibleModule)
+			s.Require().True(ok)
 
-	// Set up gas meter for context.
-	gasMeter := storetypes.NewGasMeter(2_000_000)
-	ctx := s.chainA.GetContext().WithGasMeter(gasMeter)
+			s.path.Setup()
 
-	packet := channeltypes.NewPacket(packetDataBytes, 0, transfertypes.PortID, s.path.EndpointA.ChannelID, transfertypes.PortID, s.path.EndpointB.ChannelID, clienttypes.ZeroHeight(), 0)
-	callbackData, err := types.GetSourceCallbackData(ctx, packetUnmarshaler, packet, 1_000_000)
-	s.Require().NoError(err)
-	s.Require().Equal(expCallbackData, callbackData)
+			gasMeter := storetypes.NewGasMeter(2_000_000)
+			ctx := s.chainA.GetContext().WithGasMeter(gasMeter)
+			packet := channeltypes.NewPacket(packetDataBytes, 0, transfertypes.PortID, s.path.EndpointA.ChannelID, transfertypes.PortID, s.path.EndpointB.ChannelID, clienttypes.ZeroHeight(), 0)
+			callbackData, err := types.GetSourceCallbackData(ctx, packetUnmarshaler, packet, 1_000_000)
+			s.Require().NoError(err)
+			s.Require().Equal(tc.expCallbackData, callbackData)
+		})
+	}
 }
 
 func (s *CallbacksTypesTestSuite) TestGetDestCallbackDataTransfer() {
-	s.SetupTest()
-
 	sender := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 	receiver := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 
-	packetData := transfertypes.FungibleTokenPacketData{
-		Denom:    ibctesting.TestCoin.Denom,
-		Amount:   ibctesting.TestCoin.Amount.String(),
-		Sender:   sender,
-		Receiver: receiver,
-		Memo:     fmt.Sprintf(`{"dest_callback": {"address": "%s"}}`, sender),
+	testCases := []struct {
+		name            string
+		packetData      bytesProvider
+		expCallbackdata types.CallbackData
+		malleate        func()
+	}{
+		{
+			"success: v1",
+			transfertypes.FungibleTokenPacketData{
+				Denom:    ibctesting.TestCoin.Denom,
+				Amount:   ibctesting.TestCoin.Amount.String(),
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     fmt.Sprintf(`{"dest_callback": {"address": "%s"}}`, sender),
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     "",
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			func() {
+				s.path.EndpointA.ChannelConfig.Version = transfertypes.V1
+				s.path.EndpointA.ChannelConfig.PortID = transfertypes.ModuleName
+				s.path.EndpointB.ChannelConfig.Version = transfertypes.V1
+				s.path.EndpointB.ChannelConfig.PortID = transfertypes.ModuleName
+			},
+		},
+		{
+			"success: v2",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom: transfertypes.Denom{
+							Base:  ibctesting.TestCoin.Denom,
+							Trace: nil,
+						},
+						Amount: ibctesting.TestCoin.Amount.String(),
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     fmt.Sprintf(`{"dest_callback": {"address": "%s"}}`, sender),
+			},
+			types.CallbackData{
+				CallbackAddress:   sender,
+				SenderAddress:     "",
+				ExecutionGasLimit: 1_000_000,
+				CommitGasLimit:    1_000_000,
+			},
+			func() {
+				s.path.EndpointA.ChannelConfig.Version = transfertypes.V2
+				s.path.EndpointA.ChannelConfig.PortID = transfertypes.ModuleName
+				s.path.EndpointB.ChannelConfig.Version = transfertypes.V2
+				s.path.EndpointB.ChannelConfig.PortID = transfertypes.ModuleName
+			},
+		},
 	}
-	packetDataBytes := packetData.GetBytes()
 
-	expCallbackData := types.CallbackData{
-		CallbackAddress:   sender,
-		SenderAddress:     "",
-		ExecutionGasLimit: 1_000_000,
-		CommitGasLimit:    1_000_000,
-	}
+	for _, tc := range testCases {
+		tc := tc
+		s.Run(tc.name, func() {
+			s.SetupTest()
 
-	s.path.EndpointA.ChannelConfig.Version = transfertypes.V1
-	s.path.EndpointA.ChannelConfig.PortID = transfertypes.ModuleName
-	s.path.EndpointB.ChannelConfig.Version = transfertypes.V1
-	s.path.EndpointB.ChannelConfig.PortID = transfertypes.ModuleName
+			tc.malleate()
+
+			packetDataBytes := tc.packetData.GetBytes()
 
-	transferStack, ok := s.chainA.App.GetIBCKeeper().PortKeeper.Route(transfertypes.ModuleName)
-	s.Require().True(ok)
+			transferStack, ok := s.chainA.App.GetIBCKeeper().PortKeeper.Route(transfertypes.ModuleName)
+			s.Require().True(ok)
 
-	packetUnmarshaler, ok := transferStack.(types.CallbacksCompatibleModule)
-	s.Require().True(ok)
+			packetUnmarshaler, ok := transferStack.(types.CallbacksCompatibleModule)
+			s.Require().True(ok)
 
-	s.path.Setup()
+			s.path.Setup()
 
-	gasMeter := storetypes.NewGasMeter(2_000_000)
-	ctx := s.chainA.GetContext().WithGasMeter(gasMeter)
-	packet := channeltypes.NewPacket(packetDataBytes, 0, transfertypes.PortID, s.path.EndpointA.ChannelID, transfertypes.PortID, s.path.EndpointB.ChannelID, clienttypes.ZeroHeight(), 0)
-	callbackData, err := types.GetDestCallbackData(ctx, packetUnmarshaler, packet, 1_000_000)
-	s.Require().NoError(err)
-	s.Require().Equal(expCallbackData, callbackData)
+			gasMeter := storetypes.NewGasMeter(2_000_000)
+			ctx := s.chainA.GetContext().WithGasMeter(gasMeter)
+			packet := channeltypes.NewPacket(packetDataBytes, 0, transfertypes.PortID, s.path.EndpointA.ChannelID, transfertypes.PortID, s.path.EndpointB.ChannelID, clienttypes.ZeroHeight(), 0)
+			callbackData, err := types.GetDestCallbackData(ctx, packetUnmarshaler, packet, 1_000_000)
+			s.Require().NoError(err)
+			s.Require().Equal(tc.expCallbackdata, callbackData)
+		})
+	}
 }
 
 func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
-	denom := ibctesting.TestCoin.Denom
+	denom := transfertypes.Denom{Base: ibctesting.TestCoin.Denom}
 	amount := ibctesting.TestCoin.Amount.String()
 	sender := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 	receiver := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 
 	testCases := []struct {
 		name       string
-		packetData transfertypes.FungibleTokenPacketData
+		packetData ibcexported.PacketDataProvider
 		expAddress string
 	}{
 		{
 			"success: memo has callbacks in json struct and properly formatted src_callback_address which does not match packet sender",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -390,7 +769,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"success: valid src_callback address specified in memo that matches sender",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -401,7 +780,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"failure: memo is empty",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -412,7 +791,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"failure: memo is not json string",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -423,7 +802,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"failure: memo has empty src_callback object",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -434,7 +813,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"failure: memo does not have callbacks in json struct",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -445,7 +824,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"failure:  memo has src_callback in json struct but does not have address key",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -456,7 +835,7 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 		{
 			"failure: memo has src_callback in json struct but does not have string value for address key",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -464,6 +843,126 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 			},
 			"",
 		},
+		{
+			"success v2: memo has callbacks in json struct and properly formatted src_callback_address which does not match packet sender",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s"}}`, receiver),
+			},
+			receiver,
+		},
+		{
+			"success v2: valid src_callback address specified in memo that matches sender",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     fmt.Sprintf(`{"src_callback": {"address": "%s"}}`, sender),
+			},
+			sender,
+		},
+		{
+			"failure v2: memo is empty",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     "",
+			},
+			"",
+		},
+		{
+			"failure v2: memo is not json string",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     "memo",
+			},
+			"",
+		},
+		{
+			"failure v2: memo has empty src_callback object",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {}}`,
+			},
+			"",
+		},
+		{
+			"failure v2: memo does not have callbacks in json struct",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"Key": 10}`,
+			},
+			"",
+		},
+		{
+			"failure v2:  memo has src_callback in json struct but does not have address key",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"Key": 10}}`,
+			},
+			"",
+		},
+		{
+			"failure v2: memo has src_callback in json struct but does not have string value for address key",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"address": 10}}`,
+			},
+			"",
+		},
 	}
 
 	for _, tc := range testCases {
@@ -477,20 +976,23 @@ func (s *CallbacksTypesTestSuite) TestGetCallbackAddress() {
 }
 
 func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
-	denom := ibctesting.TestCoin.Denom
+	denom := transfertypes.Denom{
+		Base:  ibctesting.TestCoin.Denom,
+		Trace: nil,
+	}
 	amount := ibctesting.TestCoin.Amount.String()
 	sender := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 	receiver := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address()).String()
 
 	testCases := []struct {
 		name       string
-		packetData transfertypes.FungibleTokenPacketData
+		packetData ibcexported.PacketDataProvider
 		expUserGas uint64
 	}{
 		{
 			"success: memo is empty",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -501,7 +1003,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"success: memo has user defined gas limit",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -512,7 +1014,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"success: user defined gas limit is zero",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -523,7 +1025,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"failure: memo has empty src_callback object",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -534,7 +1036,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"failure: memo has user defined gas limit as json number",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -545,7 +1047,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"failure: memo has user defined gas limit as negative",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -556,7 +1058,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"failure: memo has user defined gas limit as string",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -567,7 +1069,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"failure: memo has user defined gas limit as empty string",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -578,7 +1080,7 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 		{
 			"failure: malformed memo",
 			transfertypes.FungibleTokenPacketData{
-				Denom:    denom,
+				Denom:    denom.Base,
 				Amount:   amount,
 				Sender:   sender,
 				Receiver: receiver,
@@ -586,6 +1088,141 @@ func (s *CallbacksTypesTestSuite) TestUserDefinedGasLimit() {
 			},
 			0,
 		},
+		{
+			"success v2: memo is empty",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     "",
+			},
+			0,
+		},
+		{
+			"success v2: memo has user defined gas limit",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"gas_limit": "100"}}`,
+			},
+			100,
+		},
+		{
+			"success v2: user defined gas limit is zero",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"gas_limit": "0"}}`,
+			},
+			0,
+		},
+		{
+			"failure v2: memo has empty src_callback object",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {}}`,
+			},
+			0,
+		},
+		{
+			"failure v2: memo has user defined gas limit as json number",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"gas_limit": 100}}`,
+			},
+			0,
+		},
+		{
+			"failure v2: memo has user defined gas limit as negative",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"gas_limit": "-100"}}`,
+			},
+			0,
+		},
+		{
+			"failure v2: memo has user defined gas limit as string",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"gas_limit": "invalid"}}`,
+			},
+			0,
+		},
+		{
+			"failure v2: memo has user defined gas limit as empty string",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `{"src_callback": {"gas_limit": ""}}`,
+			},
+			0,
+		},
+		{
+			"failure v2: malformed memo",
+			transfertypes.FungibleTokenPacketDataV2{
+				Tokens: transfertypes.Tokens{
+					{
+						Denom:  denom,
+						Amount: amount,
+					},
+				},
+				Sender:   sender,
+				Receiver: receiver,
+				Memo:     `invalid`,
+			},
+			0,
+		},
 	}
 
 	for _, tc := range testCases {