diff --git a/sei-cosmos/storev2/rootmulti/flatkv_snapshot_test.go b/sei-cosmos/storev2/rootmulti/flatkv_snapshot_test.go
index 8b912f64f6..b0a134cd3d 100644
--- a/sei-cosmos/storev2/rootmulti/flatkv_snapshot_test.go
+++ b/sei-cosmos/storev2/rootmulti/flatkv_snapshot_test.go
@@ -9,6 +9,7 @@ import (
 	"testing"
 
 	protoio "github.com/gogo/protobuf/io"
+	snapshottypes "github.com/sei-protocol/sei-chain/sei-cosmos/snapshots/types"
 	"github.com/sei-protocol/sei-chain/sei-cosmos/store/types"
 	"github.com/sei-protocol/sei-chain/sei-db/common/keys"
 	seidbconfig "github.com/sei-protocol/sei-chain/sei-db/config"
@@ -349,6 +350,59 @@ func TestFlatKVOnlySnapshotRestorePopulatesSS(t *testing.T) {
 	queryEqual("/evm/key", evmData.nonKey, makeNonce(uint64(snapHeight)))
 }
 
+// TestFlatKVMalformedSnapshotReturnsErrorNotPanic verifies that a malformed
+// flatkv snapshot node — such as a malicious peer could send during state sync
+// — makes Restore return an error rather than panicking the node. Before the
+// fix, the SS import goroutine called panic() on any error from ssStore.Import,
+// which a peer could trigger via convertFlatKVNodes (e.g. a key with no module
+// prefix, or an undecodable value) and use to crash a syncing node.
+//
+// The crafted leaf uses a Version that does NOT match the restore height, so
+// the SC flatkv importer drops it (see KVImporter.AddNode) and the test
+// isolates the SS conversion path being fixed. The SS importer receives the
+// node regardless of version, and convertFlatKVNodes fails on StripModulePrefix.
+//
+// Note: pre-fix this could not be written as require.Panics — the panic fired
+// in a goroutine and would crash the test binary outright. Reaching the
+// require.Error assertion at all is the regression signal.
+func TestFlatKVMalformedSnapshotReturnsErrorNotPanic(t *testing.T) {
+	cfg := flatKVOnlyConfig()
+	ssCfg := seidbconfig.DefaultStateStoreConfig()
+	ssCfg.Enable = true
+	ssCfg.AsyncWriteBuffer = 0
+
+	dstStore, _ := newTestRootMultiWithSS(t, t.TempDir(), cfg, ssCfg)
+	defer func() { require.NoError(t, dstStore.Close()) }()
+
+	const restoreHeight = 1
+
+	// Hand-craft a snapshot stream: a "flatkv" store header followed by a leaf
+	// whose physical key has no module-prefix separator, so convertFlatKVNodes
+	// -> ktype.StripModulePrefix returns an error.
+	var buf bytes.Buffer
+	writer := protoio.NewDelimitedWriter(&buf)
+	require.NoError(t, writer.WriteMsg(&snapshottypes.SnapshotItem{
+		Item: &snapshottypes.SnapshotItem_Store{
+			Store: &snapshottypes.SnapshotStoreItem{Name: keys.FlatKVStoreKey},
+		},
+	}))
+	require.NoError(t, writer.WriteMsg(&snapshottypes.SnapshotItem{
+		Item: &snapshottypes.SnapshotItem_IAVL{
+			IAVL: &snapshottypes.SnapshotIAVLItem{
+				Key:     []byte("malformed-no-prefix"),
+				Value:   []byte("garbage"),
+				Version: restoreHeight + 1, // mismatch: SC drops it, SS still converts
+				Height:  0,
+			},
+		},
+	}))
+	require.NoError(t, writer.Close())
+
+	reader := protoio.NewDelimitedReader(bytes.NewReader(buf.Bytes()), 1<<30)
+	_, err := dstStore.Restore(restoreHeight, 1, reader)
+	require.Error(t, err, "malformed flatkv snapshot must return an error, not panic")
+}
+
 func simulateFlatKVOnlyBlock(
 	t *testing.T,
 	store *Store,
diff --git a/sei-cosmos/storev2/rootmulti/store.go b/sei-cosmos/storev2/rootmulti/store.go
index 25861a13a0..f6e578e005 100644
--- a/sei-cosmos/storev2/rootmulti/store.go
+++ b/sei-cosmos/storev2/rootmulti/store.go
@@ -16,6 +16,7 @@ import (
 	"github.com/sei-protocol/seilog"
 	"go.opentelemetry.io/otel/attribute"
 	otelmetric "go.opentelemetry.io/otel/metric"
+	"golang.org/x/sync/errgroup"
 	"golang.org/x/time/rate"
 
 	protoio "github.com/gogo/protobuf/io"
@@ -929,14 +930,17 @@ func (rs *Store) restore(height int64, protoReader protoio.Reader) (snapshottype
 	if err != nil {
 		return snapshottypes.SnapshotItem{}, err
 	}
+	// ssStore.Import is a streaming consumer of ssImporter: it runs for the whole
+	// loop below and only returns once we close the channel, so its result is
+	// collected after the loop via ssGroup.Wait() rather than panicked on. 
+	// On error the group cancels ssCtx, which the producer send selects on so it never 
+	// blocks against a consumer that has stopped draining.
+	ssGroup, ssCtx := errgroup.WithContext(context.Background())
 	if rs.ssStore != nil {
 		ssImporter = make(chan seidbtypes.SnapshotNode, 10000)
-		go func() {
-			err := rs.ssStore.Import(height, ssImporter)
-			if err != nil {
-				panic(err)
-			}
-		}()
+		ssGroup.Go(func() error {
+			return rs.ssStore.Import(height, ssImporter)
+		})
 	}
 loop:
 	for {
@@ -981,10 +985,17 @@ loop:
 
 			// Check if we should also import to SS store
 			if rs.ssStore != nil && node.Height == 0 && ssImporter != nil {
-				ssImporter <- seidbtypes.SnapshotNode{
+				// Guard the send: if ssStore.Import errored (e.g. on a malformed
+				// snapshot) it may have stopped draining ssImporter, so select on
+				// ssCtx.Done() to avoid blocking forever once the buffer fills.
+				select {
+				case ssImporter <- seidbtypes.SnapshotNode{
 					StoreKey: storeKey,
 					Key:      node.Key,
 					Value:    node.Value,
+				}:
+				case <-ssCtx.Done():
+					// SS import has returned (likely an error); stop forwarding.
 				}
 			}
 		default:
@@ -1001,6 +1012,9 @@ loop:
 	if ssImporter != nil {
 		close(ssImporter)
 	}
+	if err := ssGroup.Wait(); err != nil && restoreErr == nil {
+		restoreErr = fmt.Errorf("ss import failed during restore: %w", err)
+	}
 	// Initialize SS version metadata. Without SetLatestVersion, GetLatestVersion()
 	// stays 0 until the first post-sync block commits, which is misleading to any
 	// caller that reads it in that window.