diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0ca67bb764..372dbc4ac4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -69,6 +69,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (rpc) [#516](https://github.com/crypto-org-chain/ethermint/pull/516) Avoid method eth_chainId crashed due to nil pointer on IsEIP155 check.
 * (cli) [#524](https://github.com/crypto-org-chain/ethermint/pull/524) Allow tx evm raw run for generate only when offline with evm-denom flag.
 * (rpc) [#527](https://github.com/crypto-org-chain/ethermint/pull/527) Fix balance consistency between trace-block and state machine.
+* (cli) [#537](https://github.com/crypto-org-chain/ethermint/pull/537) Fix unsuppored sign mode SIGN_MODE_TEXTUAL for bank transfer.
 
 ### Improvements
 
diff --git a/app/app.go b/app/app.go
index f3033bbba6..112f7f1b11 100644
--- a/app/app.go
+++ b/app/app.go
@@ -23,6 +23,7 @@ import (
 	"net/http"
 	"os"
 	"path/filepath"
+	"slices"
 	"sort"
 
 	autocliv1 "cosmossdk.io/api/cosmos/autocli/v1"
@@ -31,6 +32,7 @@ import (
 	"cosmossdk.io/core/appmodule"
 	runtimeservices "github.com/cosmos/cosmos-sdk/runtime/services"
 	"github.com/cosmos/cosmos-sdk/server"
+	sigtypes "github.com/cosmos/cosmos-sdk/types/tx/signing"
 	"github.com/cosmos/gogoproto/proto"
 
 	"github.com/gorilla/mux"
@@ -75,6 +77,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/auth/posthandler"
 	authsims "github.com/cosmos/cosmos-sdk/x/auth/simulation"
 	authtx "github.com/cosmos/cosmos-sdk/x/auth/tx"
+	txmodule "github.com/cosmos/cosmos-sdk/x/auth/tx/config"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	"github.com/cosmos/cosmos-sdk/x/auth/vesting"
 	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
@@ -380,6 +383,21 @@ func NewEthermintApp(
 		authAddr,
 		logger,
 	)
+	// optional: enable sign mode textual by overwriting the default tx config (after setting the bank keeper)
+	enabledSignModes := slices.Clone(authtx.DefaultSignModes)
+	enabledSignModes = append(enabledSignModes, sigtypes.SignMode_SIGN_MODE_TEXTUAL)
+	txConfigOpts := authtx.ConfigOptions{
+		EnabledSignModes:           enabledSignModes,
+		TextualCoinMetadataQueryFn: txmodule.NewBankKeeperCoinMetadataQueryFn(app.BankKeeper),
+	}
+	txConfig, err := authtx.NewTxConfigWithOptions(
+		appCodec,
+		txConfigOpts,
+	)
+	if err != nil {
+		panic(err)
+	}
+	app.txConfig = txConfig
 	app.StakingKeeper = stakingkeeper.NewKeeper(
 		appCodec,
 		runtime.NewKVStoreService(keys[stakingtypes.StoreKey]),
diff --git a/cmd/ethermintd/root.go b/cmd/ethermintd/root.go
index 9b87971820..02501654da 100644
--- a/cmd/ethermintd/root.go
+++ b/cmd/ethermintd/root.go
@@ -19,6 +19,7 @@ import (
 	"errors"
 	"io"
 	"os"
+	"slices"
 
 	"github.com/spf13/cobra"
 
@@ -43,6 +44,7 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 
 	"github.com/cosmos/cosmos-sdk/client/debug"
+	simtestutil "github.com/cosmos/cosmos-sdk/testutil/sims"
 	"github.com/cosmos/cosmos-sdk/types/tx/signing"
 	authcmd "github.com/cosmos/cosmos-sdk/x/auth/client/cli"
 	"github.com/cosmos/cosmos-sdk/x/auth/types"
@@ -65,14 +67,13 @@ const (
 	ChainID   = "ethermint_9000-1"
 )
 
-type emptyAppOptions struct{}
-
-func (ao emptyAppOptions) Get(_ string) interface{} { return nil }
-
 // NewRootCmd creates a new root command for simd. It is called once in the
 // main function.
 func NewRootCmd() (*cobra.Command, ethermint.EncodingConfig) {
-	tempApp := app.NewEthermintApp(cmtlog.NewNopLogger(), dbm.NewMemDB(), nil, true, emptyAppOptions{})
+	tempApp := app.NewEthermintApp(
+		cmtlog.NewNopLogger(), dbm.NewMemDB(), nil, true,
+		simtestutil.NewAppOptionsWithFlagHome(app.DefaultNodeHome),
+	)
 	encodingConfig := tempApp.EncodingConfig()
 	initClientCtx := client.Context{}.
 		WithCodec(encodingConfig.Codec).
@@ -86,6 +87,11 @@ func NewRootCmd() (*cobra.Command, ethermint.EncodingConfig) {
 		WithKeyringOptions(hd.EthSecp256k1Option()).
 		WithViper(EnvPrefix)
 
+	initClientCtx, err := clientcfg.ReadDefaultValuesFromDefaultClientConfig(initClientCtx)
+	if err != nil {
+		panic(err)
+	}
+
 	eip712.SetEncodingConfig(encodingConfig)
 
 	rootCmd := &cobra.Command{
@@ -96,6 +102,7 @@ func NewRootCmd() (*cobra.Command, ethermint.EncodingConfig) {
 			cmd.SetOut(cmd.OutOrStdout())
 			cmd.SetErr(cmd.ErrOrStderr())
 
+			initClientCtx = initClientCtx.WithCmdContext(cmd.Context())
 			initClientCtx, err := client.ReadPersistentCommandFlags(initClientCtx, cmd.Flags())
 			if err != nil {
 				return err
@@ -110,8 +117,10 @@ func NewRootCmd() (*cobra.Command, ethermint.EncodingConfig) {
 			// sets the RPC client needed for SIGN_MODE_TEXTUAL. This sign mode
 			// is only available if the client is online.
 			if !initClientCtx.Offline {
+				enabledSignModes := slices.Clone(tx.DefaultSignModes)
+				enabledSignModes = append(enabledSignModes, signing.SignMode_SIGN_MODE_TEXTUAL)
 				txConfigOpts := tx.ConfigOptions{
-					EnabledSignModes:           append(tx.DefaultSignModes, signing.SignMode_SIGN_MODE_TEXTUAL),
+					EnabledSignModes:           enabledSignModes,
 					TextualCoinMetadataQueryFn: txmodule.NewGRPCCoinMetadataQueryFn(initClientCtx),
 				}
 				txConfig, err := tx.NewTxConfigWithOptions(
diff --git a/tests/integration_tests/test_batch.py b/tests/integration_tests/test_batch.py
index 80181d45c0..b43934a5b4 100644
--- a/tests/integration_tests/test_batch.py
+++ b/tests/integration_tests/test_batch.py
@@ -119,3 +119,15 @@ def test_multisig(ethermint, tmp_path):
         cli.account(multi_addr)["account"]["value"]["base_account"]["address"]
         == acc["address"]
     )
+
+
+def test_textual(ethermint):
+    cli = ethermint.cosmos_cli()
+    rsp = cli.transfer(
+        cli.address("validator"),
+        cli.address("signer2"),
+        "1aphoton",
+        sign_mode="textual",
+    )
+    print("mm-rsp", rsp)
+    assert rsp["code"] == 0, rsp["raw_log"]