diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6ccf5dd30d8..fc2ddb784b5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -29,6 +29,7 @@
 - Added configuration options for `pragueTime` to genesis file for Prague fork development [#6473](https://github.com/hyperledger/besu/pull/6473)
 - Moving trielog storage to RocksDB's blobdb to improve write amplications [#6289](https://github.com/hyperledger/besu/pull/6289)
 - Support for `shanghaiTime` fork and Shanghai EVM smart contracts in QBFT/IBFT chains [#6353](https://github.com/hyperledger/besu/pull/6353)
+- Change ExecutionHaltReason for contract creation collision case to return ILLEGAL_STATE_CHANGE [#6518](https://github.com/hyperledger/besu/pull/6518) 
 
 ### Bug fixes
 - Fix the way an advertised host configured with `--p2p-host` is treated when communicating with the originator of a PING packet [#6225](https://github.com/hyperledger/besu/pull/6225)
diff --git a/ethereum/api/src/main/java/org/hyperledger/besu/ethereum/api/jsonrpc/internal/results/tracing/vm/VmTraceGenerator.java b/ethereum/api/src/main/java/org/hyperledger/besu/ethereum/api/jsonrpc/internal/results/tracing/vm/VmTraceGenerator.java
index 9800f7d6bd1..74a524fa733 100644
--- a/ethereum/api/src/main/java/org/hyperledger/besu/ethereum/api/jsonrpc/internal/results/tracing/vm/VmTraceGenerator.java
+++ b/ethereum/api/src/main/java/org/hyperledger/besu/ethereum/api/jsonrpc/internal/results/tracing/vm/VmTraceGenerator.java
@@ -107,7 +107,8 @@ private boolean mustIgnore(final TraceFrame frame) {
     } else if (frame.getExceptionalHaltReason().isPresent()) {
       final Optional<ExceptionalHaltReason> haltReason = frame.getExceptionalHaltReason();
       return haltReason.get() != ExceptionalHaltReason.INVALID_JUMP_DESTINATION
-          && haltReason.get() != ExceptionalHaltReason.INSUFFICIENT_GAS;
+          && haltReason.get() != ExceptionalHaltReason.INSUFFICIENT_GAS
+          && haltReason.get() != ExceptionalHaltReason.ILLEGAL_STATE_CHANGE;
     } else {
       return frame.isVirtualOperation();
     }
diff --git a/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-call/trace_call_14_1_trace.json b/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-call/trace_call_14_1_trace.json
index ca583b57783..935a137298c 100644
--- a/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-call/trace_call_14_1_trace.json
+++ b/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-call/trace_call_14_1_trace.json
@@ -41,7 +41,7 @@
           "init" : "0x600160015560015460025560ff60005360016000f3",
           "value" : "0x0"
         },
-        "error" : "Out of gas",
+        "error" : "Illegal state change",
         "subtraces" : 0,
         "traceAddress" : [ 0 ],
         "type" : "create"
diff --git a/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-callMany/trace_callMany_14_trace.json b/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-callMany/trace_callMany_14_trace.json
index 01331d70917..019f701e490 100644
--- a/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-callMany/trace_callMany_14_trace.json
+++ b/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-callMany/trace_callMany_14_trace.json
@@ -82,7 +82,7 @@
           "init" : "0x600160015560015460025560ff60005360016000f3",
           "value" : "0x0"
         },
-        "error" : "Out of gas",
+        "error" : "Illegal state change",
         "subtraces" : 0,
         "traceAddress" : [ 0 ],
         "type" : "create"
diff --git a/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-raw-transaction/trace_rawTransaction_14_1_trace.json b/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-raw-transaction/trace_rawTransaction_14_1_trace.json
index 5dbd9ac84f0..9fc05d054e3 100644
--- a/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-raw-transaction/trace_rawTransaction_14_1_trace.json
+++ b/ethereum/api/src/test/resources/org/hyperledger/besu/ethereum/api/jsonrpc/trace/specs/trace-raw-transaction/trace_rawTransaction_14_1_trace.json
@@ -34,7 +34,7 @@
           "init" : "0x600160015560015460025560ff60005360016000f3",
           "value" : "0x0"
         },
-        "error" : "Out of gas",
+        "error" : "Illegal state change",
         "subtraces" : 0,
         "traceAddress" : [ 0 ],
         "type" : "create"
diff --git a/evm/src/main/java/org/hyperledger/besu/evm/processor/ContractCreationProcessor.java b/evm/src/main/java/org/hyperledger/besu/evm/processor/ContractCreationProcessor.java
index 20daf3ab259..2540648693f 100644
--- a/evm/src/main/java/org/hyperledger/besu/evm/processor/ContractCreationProcessor.java
+++ b/evm/src/main/java/org/hyperledger/besu/evm/processor/ContractCreationProcessor.java
@@ -117,10 +117,10 @@ public void start(final MessageFrame frame, final OperationTracer operationTrace
         LOG.trace(
             "Contract creation error: account has already been created for address {}",
             contractAddress);
-        frame.setExceptionalHaltReason(Optional.of(ExceptionalHaltReason.INSUFFICIENT_GAS));
+        frame.setExceptionalHaltReason(Optional.of(ExceptionalHaltReason.ILLEGAL_STATE_CHANGE));
         frame.setState(MessageFrame.State.EXCEPTIONAL_HALT);
         operationTracer.traceAccountCreationResult(
-            frame, Optional.of(ExceptionalHaltReason.INSUFFICIENT_GAS));
+            frame, Optional.of(ExceptionalHaltReason.ILLEGAL_STATE_CHANGE));
       } else {
         frame.addCreate(contractAddress);
         contract.incrementBalance(frame.getValue());