diff --git a/changelog.md b/changelog.md
index c4cc87c390..bc07100998 100644
--- a/changelog.md
+++ b/changelog.md
@@ -52,6 +52,7 @@
 - [#4091](https://github.com/ignite/cli/pull/4091) Fix race conditions in the plugin logic
 - [#4128](https://github.com/ignite/cli/pull/4128) Check for duplicate proto fields in config
 - [#4184](https://github.com/ignite/cli/pull/4184) Set custom `InitChainer` because of manually registered modules
+- [#4198](https://github.com/ignite/cli/pull/4198) Set correct prefix overwriting in `buf.gen.pulsar.yaml`
 
 ## [`v28.4.0`](https://github.com/ignite/cli/releases/tag/v28.4.0)
 
diff --git a/ignite/templates/app/files/{{protoDir}}/buf.gen.pulsar.yaml b/ignite/templates/app/files/{{protoDir}}/buf.gen.pulsar.yaml.plush
similarity index 84%
rename from ignite/templates/app/files/{{protoDir}}/buf.gen.pulsar.yaml
rename to ignite/templates/app/files/{{protoDir}}/buf.gen.pulsar.yaml.plush
index e8fffdb284..b128e9403f 100644
--- a/ignite/templates/app/files/{{protoDir}}/buf.gen.pulsar.yaml
+++ b/ignite/templates/app/files/{{protoDir}}/buf.gen.pulsar.yaml.plush
@@ -7,12 +7,13 @@ version: v1
 managed:
   enabled: true
   go_package_prefix:
-    default: cosmossdk.io/api
+    default: <%= ModulePath %>/api
     except:
       - buf.build/googleapis/googleapis
       - buf.build/cosmos/gogo-proto
       - buf.build/cosmos/cosmos-proto
     override:
+      buf.build/cosmos/cosmos-sdk: cosmossdk.io/api
 plugins:
   - name: go-pulsar
     out: ./api
diff --git a/ignite/templates/app/proto_test.go b/ignite/templates/app/proto_test.go
index 18d72ad0ba..0c4a8fe6e4 100644
--- a/ignite/templates/app/proto_test.go
+++ b/ignite/templates/app/proto_test.go
@@ -3,6 +3,7 @@ package app
 import (
 	"os"
 	"path/filepath"
+	"strings"
 	"testing"
 
 	"github.com/stretchr/testify/require"
@@ -13,7 +14,7 @@ func TestBufFiles(t *testing.T) {
 	protoDir, err := os.ReadDir("files/{{protoDir}}")
 	require.NoError(t, err)
 	for _, e := range protoDir {
-		want = append(want, filepath.Join("{{protoDir}}", e.Name()))
+		want = append(want, filepath.Join("{{protoDir}}", strings.TrimSuffix(e.Name(), ".plush")))
 	}
 
 	got, err := BufFiles()
diff --git a/integration/app/cmd_proto_path_test.go b/integration/app/cmd_proto_path_test.go
index ae2f207df1..6904d478d1 100644
--- a/integration/app/cmd_proto_path_test.go
+++ b/integration/app/cmd_proto_path_test.go
@@ -5,6 +5,7 @@ package app_test
 import (
 	"os"
 	"path/filepath"
+	"strings"
 	"testing"
 
 	"github.com/stretchr/testify/require"
@@ -58,6 +59,25 @@ var (
 	}
 )
 
+// TestGenerapAppCheckBufPulsarPath tests scaffolding a new chain and checks if the buf.gen.pulsar.yaml file is correct
+func TestGenerapAppCheckBufPulsarPath(t *testing.T) {
+	var (
+		env = envtest.New(t)
+		app = env.Scaffold("github.com/test/blog")
+	)
+
+	bufGenPulsarPath := filepath.Join(app.SourcePath(), "proto", "buf.gen.pulsar.yaml")
+	_, statErr := os.Stat(bufGenPulsarPath)
+	require.False(t, os.IsNotExist(statErr), "buf.gen.pulsar.yaml should be scaffolded")
+
+	result, err := os.ReadFile(bufGenPulsarPath)
+	require.NoError(t, err)
+
+	require.True(t, strings.Contains(string(result), "default: github.com/test/blog/api"), "buf.gen.pulsar.yaml should contain the correct api override")
+
+	app.EnsureSteady()
+}
+
 func TestChangeProtoPath(t *testing.T) {
 	var (
 		env     = envtest.New(t)