diff --git a/changelog.md b/changelog.md
index 025b27fb6f..5a8bd95e8d 100644
--- a/changelog.md
+++ b/changelog.md
@@ -26,6 +26,7 @@
 ### Fixes
 
 - [#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/go.mod b/go.mod
index 7d85cb5733..8ef603f130 100644
--- a/go.mod
+++ b/go.mod
@@ -44,6 +44,7 @@ require (
 	github.com/goccy/go-yaml v1.11.2
 	github.com/golangci/golangci-lint v1.55.2
 	github.com/google/go-github/v48 v48.2.0
+	github.com/google/go-querystring v1.1.0
 	github.com/gookit/color v1.5.4
 	github.com/gorilla/mux v1.8.1
 	github.com/gorilla/rpc v1.2.1
@@ -256,7 +257,6 @@ require (
 	github.com/google/go-cmp v0.6.0 // indirect
 	github.com/google/go-containerregistry v0.14.0 // indirect
 	github.com/google/go-dap v0.9.1 // indirect
-	github.com/google/go-querystring v1.1.0 // indirect
 	github.com/google/pprof v0.0.0-20240117000934-35fc243c5815 // indirect
 	github.com/google/uuid v1.6.0 // indirect
 	github.com/gordonklaus/ineffassign v0.0.0-20230610083614-0e73809eb601 // indirect
diff --git a/ignite/templates/app/files/proto/buf.gen.pulsar.yaml b/ignite/templates/app/files/proto/buf.gen.pulsar.yaml.plush
similarity index 84%
rename from ignite/templates/app/files/proto/buf.gen.pulsar.yaml
rename to ignite/templates/app/files/proto/buf.gen.pulsar.yaml.plush
index e8fffdb284..b128e9403f 100644
--- a/ignite/templates/app/files/proto/buf.gen.pulsar.yaml
+++ b/ignite/templates/app/files/proto/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/integration/app/proto_test.go b/integration/app/proto_test.go
new file mode 100644
index 0000000000..5c0eb04b44
--- /dev/null
+++ b/integration/app/proto_test.go
@@ -0,0 +1,32 @@
+//go:build !relayer
+
+package app_test
+
+import (
+	"os"
+	"path/filepath"
+	"strings"
+	"testing"
+
+	envtest "github.com/ignite/cli/v28/integration"
+	"github.com/stretchr/testify/require"
+)
+
+// TestGenerateAppCheckBufPulsarPath tests scaffolding a new chain and checks if the buf.gen.pulsar.yaml file is correct
+func TestGenerateAppCheckBufPulsarPath(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()
+}