diff --git a/CHANGELOG.md b/CHANGELOG.md
index b7fc6693b33a..d06d0cf534ba 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -117,6 +117,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (x/auth/tx) [#12474](https://github.com/cosmos/cosmos-sdk/pull/12474) Remove condition in GetTxsEvent that disallowed multiple equal signs, which would break event queries with base64 strings (i.e. query by signature).
 * (store/rootmulti) [#12487](https://github.com/cosmos/cosmos-sdk/pull/12487) Fix non-deterministic map iteration.
 * (x/group) [#12888](https://github.com/cosmos/cosmos-sdk/pull/12888) Fix event propagation to the current context of `x/group` message execution `[]sdk.Result`.
+* (sdk/dec_coins) [#12903](https://github.com/cosmos/cosmos-sdk/pull/12903) Fix nil `DecCoin` creation when converting `Coins` to `DecCoins`
 * (x/upgrade) [#12906](https://github.com/cosmos/cosmos-sdk/pull/12906) Fix upgrade failure by moving downgrade verification logic after store migration.
 
 ### Deprecated
diff --git a/types/dec_coin.go b/types/dec_coin.go
index 99c77a970668..42ff885d58a6 100644
--- a/types/dec_coin.go
+++ b/types/dec_coin.go
@@ -182,10 +182,14 @@ func sanitizeDecCoins(decCoins []DecCoin) DecCoins {
 // NewDecCoinsFromCoins constructs a new coin set with decimal values
 // from regular Coins.
 func NewDecCoinsFromCoins(coins ...Coin) DecCoins {
-	decCoins := make(DecCoins, len(coins))
+	if len(coins) == 0 {
+		return DecCoins{}
+	}
+
+	decCoins := make([]DecCoin, 0, len(coins))
 	newCoins := NewCoins(coins...)
-	for i, coin := range newCoins {
-		decCoins[i] = NewDecCoinFromCoin(coin)
+	for _, coin := range newCoins {
+		decCoins = append(decCoins, NewDecCoinFromCoin(coin))
 	}
 
 	return decCoins
diff --git a/types/dec_coin_test.go b/types/dec_coin_test.go
index 59f8b4f280fa..6340c45c4f13 100644
--- a/types/dec_coin_test.go
+++ b/types/dec_coin_test.go
@@ -569,6 +569,29 @@ func (s *decCoinTestSuite) TestNewDecCoinsWithIsValid() {
 	}
 }
 
+func (s *decCoinTestSuite) TestNewDecCoinsWithZeroCoins() {
+	zeroCoins := append(sdk.NewCoins(sdk.NewCoin("mytoken", sdk.NewInt(0))), sdk.Coin{Denom: "wbtc", Amount: sdk.NewInt(10)})
+
+	tests := []struct {
+		coins        sdk.Coins
+		expectLength int
+	}{
+		{
+			sdk.NewCoins(sdk.NewCoin("mytoken", sdk.NewInt(10)), sdk.NewCoin("wbtc", sdk.NewInt(10))),
+			2,
+		},
+		{
+			zeroCoins,
+			1,
+		},
+	}
+
+	for _, tc := range tests {
+		tc := tc
+		s.Require().Equal(sdk.NewDecCoinsFromCoins(tc.coins...).Len(), tc.expectLength)
+	}
+}
+
 func (s *decCoinTestSuite) TestDecCoins_AddDecCoinWithIsValid() {
 	lengthTestDecCoins := sdk.NewDecCoins().Add(sdk.NewDecCoin("mytoken", sdk.NewInt(10))).Add(sdk.DecCoin{Denom: "BTC", Amount: math.LegacyNewDec(10)})
 	s.Require().Equal(2, len(lengthTestDecCoins), "should be 2")