diff --git a/x/evm/keeper/keeper.go b/x/evm/keeper/keeper.go
index 90ec6038b4..1f00ef5814 100644
--- a/x/evm/keeper/keeper.go
+++ b/x/evm/keeper/keeper.go
@@ -326,7 +326,11 @@ func (k *Keeper) GetBalance(ctx sdk.Context, addr common.Address) *big.Int {
 	if evmDenom == "" {
 		return big.NewInt(-1)
 	}
-	coin := k.bankKeeper.GetBalance(ctx, cosmosAddr, evmDenom)
+
+	// Only spendable coin is considered as balance from EVM perspective.
+	// Locked coins are not shown in the balance to prevent misleading
+	// insufficient balance errors for users.
+	coin := k.bankKeeper.SpendableCoin(ctx, cosmosAddr, evmDenom)
 	return coin.Amount.BigInt()
 }
 
diff --git a/x/evm/keeper/statedb.go b/x/evm/keeper/statedb.go
index c2cd893c5e..c78c059779 100644
--- a/x/evm/keeper/statedb.go
+++ b/x/evm/keeper/statedb.go
@@ -90,7 +90,11 @@ func (k *Keeper) SetBalance(ctx sdk.Context, addr common.Address, amount *big.In
 	cosmosAddr := sdk.AccAddress(addr.Bytes())
 
 	params := k.GetParams(ctx)
-	coin := k.bankKeeper.GetBalance(ctx, cosmosAddr, params.EvmDenom)
+
+	// Since spendable balances are fetched to get balances, when setting balances
+	// it should also compare with spendable coins as well to get the correct
+	// delta.
+	coin := k.bankKeeper.SpendableCoin(ctx, cosmosAddr, params.EvmDenom)
 	balance := coin.Amount.BigInt()
 	delta := new(big.Int).Sub(amount, balance)
 	switch delta.Sign() {
diff --git a/x/evm/types/interfaces.go b/x/evm/types/interfaces.go
index caddeb78c9..98b25643d4 100644
--- a/x/evm/types/interfaces.go
+++ b/x/evm/types/interfaces.go
@@ -46,7 +46,7 @@ type AccountKeeper interface {
 // BankKeeper defines the expected interface needed to retrieve account balances.
 type BankKeeper interface {
 	authtypes.BankKeeper
-	GetBalance(ctx sdk.Context, addr sdk.AccAddress, denom string) sdk.Coin
+	SpendableCoin(ctx sdk.Context, addr sdk.AccAddress, denom string) sdk.Coin
 	SendCoinsFromModuleToAccount(ctx sdk.Context, senderModule string, recipientAddr sdk.AccAddress, amt sdk.Coins) error
 	MintCoins(ctx sdk.Context, moduleName string, amt sdk.Coins) error
 	BurnCoins(ctx sdk.Context, moduleName string, amt sdk.Coins) error