diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7e501763ac..dde589e6cd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -68,6 +68,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (rpc) [#521](https://github.com/crypto-org-chain/ethermint/pull/521) Align hash and miner in subscribe newHeads with eth_getBlockByNumber.
 * (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.
 
 ### Improvements
 
diff --git a/x/evm/keeper/state_transition.go b/x/evm/keeper/state_transition.go
index 02e534f822..21c503f4e0 100644
--- a/x/evm/keeper/state_transition.go
+++ b/x/evm/keeper/state_transition.go
@@ -322,33 +322,40 @@ func (k *Keeper) ApplyMessageWithConfig(
 		return nil, errorsmod.Wrap(types.ErrCallDisabled, "failed to call contract")
 	}
 
-	stateDB := statedb.NewWithParams(ctx, k, cfg.TxConfig, cfg.Params.EvmDenom)
-	var evm *vm.EVM
-	if cfg.Overrides != nil {
-		if err := cfg.Overrides.Apply(stateDB); err != nil {
-			return nil, errorsmod.Wrap(err, "failed to apply state override")
-		}
-	}
-	evm = k.NewEVM(ctx, msg, cfg, stateDB)
-	leftoverGas := msg.GasLimit
-	sender := vm.AccountRef(msg.From)
 	// Allow the tracer captures the tx level events, mainly the gas consumption.
-	vmCfg := evm.Config
-	if vmCfg.Tracer != nil {
+	leftoverGas := msg.GasLimit
+	senderAddr := sdk.AccAddress(msg.From.Bytes())
+	if cfg.Tracer != nil {
 		if cfg.DebugTrace {
 			// msg.GasPrice should have been set to effective gas price
-			stateDB.SubBalance(sender.Address(), new(big.Int).Mul(msg.GasPrice, new(big.Int).SetUint64(msg.GasLimit)))
-			stateDB.SetNonce(sender.Address(), stateDB.GetNonce(sender.Address())+1)
+			amount := new(big.Int).Mul(msg.GasPrice, new(big.Int).SetUint64(msg.GasLimit))
+			if err := k.SubBalance(ctx, senderAddr, sdk.NewCoins(sdk.NewCoin(cfg.Params.EvmDenom, sdkmath.NewIntFromBigInt(amount)))); err != nil {
+				return nil, errorsmod.Wrap(err, "failed to subtract balance")
+			}
+			if err := k.incrNonce(ctx, senderAddr); err != nil {
+				return nil, errorsmod.Wrap(err, "failed to increment nonce")
+			}
 		}
-		vmCfg.Tracer.CaptureTxStart(leftoverGas)
+		cfg.Tracer.CaptureTxStart(leftoverGas)
 		defer func() {
 			if cfg.DebugTrace {
-				stateDB.AddBalance(sender.Address(), new(big.Int).Mul(msg.GasPrice, new(big.Int).SetUint64(leftoverGas)))
+				amount := new(big.Int).Mul(msg.GasPrice, new(big.Int).SetUint64(leftoverGas))
+				k.AddBalance(ctx, senderAddr, sdk.NewCoins(sdk.NewCoin(cfg.Params.EvmDenom, sdkmath.NewIntFromBigInt(amount))))
 			}
-			vmCfg.Tracer.CaptureTxEnd(leftoverGas)
+			cfg.Tracer.CaptureTxEnd(leftoverGas)
 		}()
 	}
 
+	stateDB := statedb.NewWithParams(ctx, k, cfg.TxConfig, cfg.Params.EvmDenom)
+	var evm *vm.EVM
+	if cfg.Overrides != nil {
+		if err := cfg.Overrides.Apply(stateDB); err != nil {
+			return nil, errorsmod.Wrap(err, "failed to apply state override")
+		}
+	}
+	evm = k.NewEVM(ctx, msg, cfg, stateDB)
+	sender := vm.AccountRef(msg.From)
+
 	rules := cfg.Rules
 	contractCreation := msg.To == nil
 	intrinsicGas, err := k.GetEthIntrinsicGas(msg, rules, contractCreation)
diff --git a/x/evm/keeper/statedb.go b/x/evm/keeper/statedb.go
index e718de0148..e4e6f0d9ae 100644
--- a/x/evm/keeper/statedb.go
+++ b/x/evm/keeper/statedb.go
@@ -138,6 +138,20 @@ func (k *Keeper) SetAccount(ctx sdk.Context, addr common.Address, account stated
 	return nil
 }
 
+func (k *Keeper) incrNonce(ctx sdk.Context, addr sdk.AccAddress) error {
+	acct := k.accountKeeper.GetAccount(ctx, addr)
+	if acct == nil {
+		acct = k.accountKeeper.NewAccountWithAddress(ctx, addr)
+	}
+
+	if err := acct.SetSequence(acct.GetSequence() + 1); err != nil {
+		return err
+	}
+
+	k.accountKeeper.SetAccount(ctx, acct)
+	return nil
+}
+
 // SetState update contract storage, delete if value is empty.
 func (k *Keeper) SetState(ctx sdk.Context, addr common.Address, key common.Hash, value []byte) {
 	store := prefix.NewStore(ctx.KVStore(k.storeKey), types.AddressStoragePrefix(addr))