diff --git a/CHANGELOG.md b/CHANGELOG.md
index be5320f17273..94f33773a4da 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,10 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ## [Unreleased]
 
+### Bug Fixes
+
+* (x/staking) [#19226](https://github.com/cosmos/cosmos-sdk/pull/19226) Ensure `GetLastValidators` in `x/staking` does not return an error when `MaxValidators` exceeds total number of bonded validators.
+
 ## [v0.47.8](https://github.com/cosmos/cosmos-sdk/releases/tag/v0.47.8) - 2024-01-22
 
 ### Improvements
diff --git a/x/staking/keeper/validator.go b/x/staking/keeper/validator.go
index d1315ed7793f..0179b3649ef5 100644
--- a/x/staking/keeper/validator.go
+++ b/x/staking/keeper/validator.go
@@ -314,16 +314,21 @@ func (k Keeper) GetLastValidators(ctx sdk.Context) (validators []types.Validator
 
 	// add the actual validator power sorted store
 	maxValidators := k.MaxValidators(ctx)
-	validators = make([]types.Validator, maxValidators)
 
 	iterator := sdk.KVStorePrefixIterator(store, types.LastValidatorPowerKey)
 	defer iterator.Close()
 
 	i := 0
+	validators = make([]types.Validator, maxValidators)
 	for ; iterator.Valid(); iterator.Next() {
-		// sanity check
+		// Note, we do NOT error here as the MaxValidators param may change via on-chain
+		// governance. In cases where the param is increased, this case should never
+		// be hit. In cases where the param is decreased, we will simply not return
+		// the remainder of the validator set, as the ApplyAndReturnValidatorSetUpdates
+		// call should ensure the validators past the cliff will be moved to the
+		// unbonding set.
 		if i >= int(maxValidators) {
-			panic("more validators than maxValidators found")
+			break
 		}
 
 		address := types.AddressFromLastValidatorPowerKey(iterator.Key())
diff --git a/x/staking/keeper/validator_test.go b/x/staking/keeper/validator_test.go
index d4bc16778010..1c494ec0788f 100644
--- a/x/staking/keeper/validator_test.go
+++ b/x/staking/keeper/validator_test.go
@@ -81,6 +81,46 @@ func (s *KeeperTestSuite) TestValidator() {
 	require.Equal(int64(0), resPower)
 }
 
+func (s *KeeperTestSuite) TestGetLastValidators() {
+	ctx, keeper := s.ctx, s.stakingKeeper
+	require := s.Require()
+
+	params := keeper.GetParams(ctx)
+	params.MaxValidators = 50
+	require.NoError(keeper.SetParams(ctx, params))
+
+	// construct 50 validators all with equal power of 100
+	var validators [50]stakingtypes.Validator
+	for i := 0; i < 50; i++ {
+		validators[i] = testutil.NewValidator(s.T(), sdk.ValAddress(PKs[i].Address().Bytes()), PKs[i])
+		validators[i].Status = stakingtypes.Unbonded
+		validators[i].Tokens = math.ZeroInt()
+		tokens := keeper.TokensFromConsensusPower(ctx, 100)
+
+		validators[i], _ = validators[i].AddTokensFromDel(tokens)
+		require.Equal(keeper.TokensFromConsensusPower(ctx, 100), validators[i].Tokens)
+
+		s.bankKeeper.EXPECT().SendCoinsFromModuleToModule(gomock.Any(), stakingtypes.NotBondedPoolName, stakingtypes.BondedPoolName, gomock.Any())
+
+		validators[i] = stakingkeeper.TestingUpdateValidator(keeper, ctx, validators[i], true)
+		require.NoError(keeper.SetValidatorByConsAddr(ctx, validators[i]))
+
+		resVal, ok := keeper.GetValidator(ctx, sdk.ValAddress(PKs[i].Address().Bytes()))
+		require.True(ok)
+		require.True(validators[i].MinEqual(&resVal))
+	}
+
+	res := keeper.GetLastValidators(ctx)
+	require.Len(res, 50)
+
+	// reduce max validators to 30 and ensure we only get 30 back
+	params.MaxValidators = 30
+	require.NoError(keeper.SetParams(ctx, params))
+
+	res = keeper.GetLastValidators(ctx)
+	require.Len(res, 30)
+}
+
 // This function tests UpdateValidator, GetValidator, GetLastValidators, RemoveValidator
 func (s *KeeperTestSuite) TestValidatorBasics() {
 	ctx, keeper := s.ctx, s.stakingKeeper