diff --git a/modules/apps/transfer/keeper/export_test.go b/modules/apps/transfer/keeper/export_test.go
index c2a30839dc6..8c6f3961c79 100644
--- a/modules/apps/transfer/keeper/export_test.go
+++ b/modules/apps/transfer/keeper/export_test.go
@@ -31,3 +31,8 @@ func (k Keeper) GetAllDenomTraces(ctx sdk.Context) []types.DenomTrace {
 func (k Keeper) TokenFromCoin(ctx sdk.Context, coin sdk.Coin) (types.Token, error) {
 	return k.tokenFromCoin(ctx, coin)
 }
+
+// CreatePacketDataBytesFromVersion is a wrapper around createPacketDataBytesFromVersion for testing purposes
+func CreatePacketDataBytesFromVersion(appVersion, sender, receiver, memo string, tokens types.Tokens) []byte {
+	return createPacketDataBytesFromVersion(appVersion, sender, receiver, memo, tokens)
+}
diff --git a/modules/apps/transfer/keeper/relay.go b/modules/apps/transfer/keeper/relay.go
index e1a0a7e7185..287ad5b5445 100644
--- a/modules/apps/transfer/keeper/relay.go
+++ b/modules/apps/transfer/keeper/relay.go
@@ -138,19 +138,7 @@ func (k Keeper) sendTransfer(
 		tokens = append(tokens, token)
 	}
 
-	var packetDataBytes []byte
-	switch appVersion {
-	case types.V1:
-		// Length of coins has been checked earlier to be 1 if version is V1.
-		token := tokens[0]
-		packetData := types.NewFungibleTokenPacketData(token.Denom.Path(), token.Amount, sender.String(), receiver, memo)
-		packetDataBytes = packetData.GetBytes()
-	case types.V2:
-		packetData := types.NewFungibleTokenPacketDataV2(tokens, sender.String(), receiver, memo)
-		packetDataBytes = packetData.GetBytes()
-	default:
-		panic(fmt.Errorf("app version must be one of %s", types.SupportedVersions))
-	}
+	packetDataBytes := createPacketDataBytesFromVersion(appVersion, sender.String(), receiver, memo, tokens)
 
 	sequence, err := k.ics4Wrapper.SendPacket(ctx, channelCap, sourcePort, sourceChannel, timeoutHeight, timeoutTimestamp, packetDataBytes)
 	if err != nil {
@@ -450,3 +438,26 @@ func (k Keeper) tokenFromCoin(ctx sdk.Context, coin sdk.Coin) (types.Token, erro
 		Amount: coin.Amount.String(),
 	}, nil
 }
+
+// createPacketDataBytesFromVersion creates the packet data bytes to be sent based on the application version.
+func createPacketDataBytesFromVersion(appVersion, sender, receiver, memo string, tokens types.Tokens) []byte {
+	var packetDataBytes []byte
+	switch appVersion {
+	case types.V1:
+		// Sanity check, tokens must always be of length 1 if using app version V1.
+		if len(tokens) != 1 {
+			panic(fmt.Errorf("length of tokens must be equal to 1 if using %s version", types.V1))
+		}
+
+		token := tokens[0]
+		packetData := types.NewFungibleTokenPacketData(token.Denom.Path(), token.Amount, sender, receiver, memo)
+		packetDataBytes = packetData.GetBytes()
+	case types.V2:
+		packetData := types.NewFungibleTokenPacketDataV2(tokens, sender, receiver, memo)
+		packetDataBytes = packetData.GetBytes()
+	default:
+		panic(fmt.Errorf("app version must be one of %s", types.SupportedVersions))
+	}
+
+	return packetDataBytes
+}
diff --git a/modules/apps/transfer/keeper/relay_test.go b/modules/apps/transfer/keeper/relay_test.go
index 5873107bd13..630bfac7a24 100644
--- a/modules/apps/transfer/keeper/relay_test.go
+++ b/modules/apps/transfer/keeper/relay_test.go
@@ -12,11 +12,13 @@ import (
 	banktestutil "github.com/cosmos/cosmos-sdk/x/bank/testutil"
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
 
+	transferkeeper "github.com/cosmos/ibc-go/v8/modules/apps/transfer/keeper"
 	"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"
 	ibcerrors "github.com/cosmos/ibc-go/v8/modules/core/errors"
 	ibctesting "github.com/cosmos/ibc-go/v8/testing"
+	ibcmock "github.com/cosmos/ibc-go/v8/testing/mock"
 )
 
 // TestSendTransfer tests sending from chainA to chainB using both coin
@@ -1243,3 +1245,75 @@ func (suite *KeeperTestSuite) TestPacketForwardsCompatibility() {
 		})
 	}
 }
+
+func (suite *KeeperTestSuite) TestCreatePacketDataBytesFromVersion() {
+	var (
+		bz     []byte
+		tokens types.Tokens
+	)
+
+	testCases := []struct {
+		name        string
+		appVersion  string
+		malleate    func()
+		expResult   func(bz []byte)
+		expPanicErr error
+	}{
+		{
+			"success",
+			types.V1,
+			func() {},
+			func(bz []byte) {
+				expPacketData := types.NewFungibleTokenPacketData("", "", "", "", "")
+				suite.Require().Equal(bz, expPacketData.GetBytes())
+			},
+			nil,
+		},
+		{
+			"success: version 2",
+			types.V2,
+			func() {},
+			func(bz []byte) {
+				expPacketData := types.NewFungibleTokenPacketDataV2(types.Tokens{types.Token{}}, "", "", "")
+				suite.Require().Equal(bz, expPacketData.GetBytes())
+			},
+			nil,
+		},
+		{
+			"failure: must have single coin if using version 1.",
+			types.V1,
+			func() {
+				tokens = types.Tokens{}
+			},
+			nil,
+			fmt.Errorf("length of tokens must be equal to 1 if using %s version", types.V1),
+		},
+		{
+			"failure: invalid version",
+			ibcmock.Version,
+			func() {},
+			nil,
+			fmt.Errorf("app version must be one of %s", types.SupportedVersions),
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+			tokens = types.Tokens{types.Token{}}
+
+			tc.malleate()
+
+			createFunc := func() {
+				bz = transferkeeper.CreatePacketDataBytesFromVersion(tc.appVersion, "", "", "", tokens)
+			}
+
+			expPanic := tc.expPanicErr != nil
+			if expPanic {
+				suite.Require().PanicsWithError(tc.expPanicErr.Error(), createFunc)
+			} else {
+				createFunc()
+				tc.expResult(bz)
+			}
+		})
+	}
+}