diff --git a/core/context/server_context.go b/core/context/server_context.go
index 5f36b8d09a41..a60710dadecb 100644
--- a/core/context/server_context.go
+++ b/core/context/server_context.go
@@ -15,6 +15,7 @@ type ServerContext interface {
 	GetLogger() log.Logger
 	GetViper() *viper.Viper
 	GetConfig() CometConfig
+	SetRoot(rootDir string)
 }
 
 type BaseConfig interface {
diff --git a/simapp/simd/cmd/testnet.go b/simapp/simd/cmd/testnet.go
index 9fd66923a76d..7f7575d43df7 100644
--- a/simapp/simd/cmd/testnet.go
+++ b/simapp/simd/cmd/testnet.go
@@ -408,6 +408,9 @@ func initTestnetFiles(
 		return err
 	}
 
+	// Update viper root since root dir become rootdir/node/simd
+	corectx.GetServerContextFromCmd(cmd).SetRoot(nodeConfig.RootDir)
+
 	cmd.PrintErrf("Successfully initialized %d node directories\n", args.numValidators)
 	return nil
 }
diff --git a/simapp/simd/cmd/testnet_test.go b/simapp/simd/cmd/testnet_test.go
index f9de7173373e..91952d2a07b5 100644
--- a/simapp/simd/cmd/testnet_test.go
+++ b/simapp/simd/cmd/testnet_test.go
@@ -13,6 +13,7 @@ import (
 	"cosmossdk.io/x/auth"
 	banktypes "cosmossdk.io/x/bank/types"
 	"cosmossdk.io/x/staking"
+	corectx "cosmossdk.io/core/context"
 
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/client/flags"
@@ -75,7 +76,7 @@ func Test_TestnetCmd(t *testing.T) {
 	err = cmd.ExecuteContext(ctx)
 	require.NoError(t, err)
 
-	genFile := cfg.GenesisFile()
+	genFile := corectx.GetServerContextFromCmd(cmd).GetConfig().GenesisFile()
 	appState, _, err := genutiltypes.GenesisStateFromGenFile(genFile)
 	require.NoError(t, err)