diff --git a/x/ccv/provider/keeper/consumer_lifecycle.go b/x/ccv/provider/keeper/consumer_lifecycle.go
index 5f806b0e6d..08b55b3ced 100644
--- a/x/ccv/provider/keeper/consumer_lifecycle.go
+++ b/x/ccv/provider/keeper/consumer_lifecycle.go
@@ -97,6 +97,21 @@ func (k Keeper) BeginBlockLaunchConsumers(ctx sdk.Context) error {
 			ctx.Logger().Error("could not launch chain",
 				"consumerId", consumerId,
 				"error", err)
+
+			// reset spawn time to zero so that owner can try again later
+			initializationRecord, err := k.GetConsumerInitializationParameters(ctx, consumerId)
+			if err != nil {
+				return errorsmod.Wrapf(ccv.ErrInvalidConsumerState,
+					"getting initialization parameters, consumerId(%s): %s", consumerId, err.Error())
+			}
+			initializationRecord.SpawnTime = time.Time{}
+			err = k.SetConsumerInitializationParameters(ctx, consumerId, initializationRecord)
+			if err != nil {
+				return fmt.Errorf("setting consumer initialization parameters, consumerId(%s): %w", consumerId, err)
+			}
+			// also set the phase to registered
+			k.SetConsumerPhase(ctx, consumerId, types.CONSUMER_PHASE_REGISTERED)
+
 			continue
 		}
 
diff --git a/x/ccv/provider/keeper/consumer_lifecycle_test.go b/x/ccv/provider/keeper/consumer_lifecycle_test.go
index 9f7eec3d69..3561cb8c46 100644
--- a/x/ccv/provider/keeper/consumer_lifecycle_test.go
+++ b/x/ccv/provider/keeper/consumer_lifecycle_test.go
@@ -322,7 +322,7 @@ func TestBeginBlockLaunchConsumers(t *testing.T) {
 	// fifth chain corresponds to an Opt-In chain with no opted-in validators and hence the
 	// chain launch is NOT successful
 	phase = providerKeeper.GetConsumerPhase(ctx, "4")
-	require.Equal(t, providertypes.CONSUMER_PHASE_INITIALIZED, phase)
+	require.Equal(t, providertypes.CONSUMER_PHASE_REGISTERED, phase)
 	_, found = providerKeeper.GetConsumerGenesis(ctx, "4")
 	require.False(t, found)
 }
diff --git a/x/ccv/provider/keeper/msg_server.go b/x/ccv/provider/keeper/msg_server.go
index a1f057b3ee..ff1c082183 100644
--- a/x/ccv/provider/keeper/msg_server.go
+++ b/x/ccv/provider/keeper/msg_server.go
@@ -406,7 +406,7 @@ func (k msgServer) CreateConsumer(goCtx context.Context, msg *types.MsgCreateCon
 	if spawnTime, initialized := k.Keeper.InitializeConsumer(ctx, consumerId); initialized {
 		if err := k.Keeper.PrepareConsumerForLaunch(ctx, consumerId, time.Time{}, spawnTime); err != nil {
 			return &resp, errorsmod.Wrapf(ccvtypes.ErrInvalidConsumerState,
-				"cannot prepare chain with consumer id (%s) for launch", consumerId)
+				"prepare consumer for launch, consumerId(%s), spawnTime(%s): %s", consumerId, spawnTime, err.Error())
 		}
 
 		// add SpawnTime event attribute
@@ -584,7 +584,8 @@ func (k msgServer) UpdateConsumer(goCtx context.Context, msg *types.MsgUpdateCon
 	if spawnTime, initialized := k.Keeper.InitializeConsumer(ctx, consumerId); initialized {
 		if err := k.Keeper.PrepareConsumerForLaunch(ctx, consumerId, previousSpawnTime, spawnTime); err != nil {
 			return &resp, errorsmod.Wrapf(ccvtypes.ErrInvalidConsumerState,
-				"cannot prepare chain with consumer id (%s) for launch", consumerId)
+				"prepare consumer for launch, consumerId(%s), previousSpawnTime(%s), spawnTime(%s): %s",
+				consumerId, previousSpawnTime, spawnTime, err.Error())
 		}
 	}