diff --git a/FULL_HELP_DOCS.md b/FULL_HELP_DOCS.md
index 479ac6720..1755e65f5 100644
--- a/FULL_HELP_DOCS.md
+++ b/FULL_HELP_DOCS.md
@@ -148,7 +148,7 @@ Deploy builtin Soroban Asset Contract
 * `--cost` — Output the cost execution to stderr
 * `--instructions <INSTRUCTIONS>` — Number of instructions to simulate
 * `--build-only` — Build the transaction and only write the base64 xdr to stdout
-* `--sim-only` — Simulate the transaction and only write the base64 xdr to stdout
+* `--sim-only` — (Deprecated) simulate the transaction and only write the base64 xdr to stdout
 
 
 
@@ -373,7 +373,7 @@ If no keys are specified the contract itself is extended.
 * `--cost` — Output the cost execution to stderr
 * `--instructions <INSTRUCTIONS>` — Number of instructions to simulate
 * `--build-only` — Build the transaction and only write the base64 xdr to stdout
-* `--sim-only` — Simulate the transaction and only write the base64 xdr to stdout
+* `--sim-only` — (Deprecated) simulate the transaction and only write the base64 xdr to stdout
 
 
 
@@ -401,7 +401,7 @@ Deploy a wasm contract
 * `--cost` — Output the cost execution to stderr
 * `--instructions <INSTRUCTIONS>` — Number of instructions to simulate
 * `--build-only` — Build the transaction and only write the base64 xdr to stdout
-* `--sim-only` — Simulate the transaction and only write the base64 xdr to stdout
+* `--sim-only` — (Deprecated) simulate the transaction and only write the base64 xdr to stdout
 * `-i`, `--ignore-checks` — Whether to ignore safety checks when deploying contracts
 
   Default value: `false`
@@ -679,7 +679,7 @@ Install a WASM file to the ledger without creating a contract instance
 * `--cost` — Output the cost execution to stderr
 * `--instructions <INSTRUCTIONS>` — Number of instructions to simulate
 * `--build-only` — Build the transaction and only write the base64 xdr to stdout
-* `--sim-only` — Simulate the transaction and only write the base64 xdr to stdout
+* `--sim-only` — (Deprecated) simulate the transaction and only write the base64 xdr to stdout
 * `--wasm <WASM>` — Path to wasm binary
 * `-i`, `--ignore-checks` — Whether to ignore safety checks when deploying contracts
 
@@ -718,7 +718,7 @@ stellar contract invoke ... -- --help
 * `--cost` — Output the cost execution to stderr
 * `--instructions <INSTRUCTIONS>` — Number of instructions to simulate
 * `--build-only` — Build the transaction and only write the base64 xdr to stdout
-* `--sim-only` — Simulate the transaction and only write the base64 xdr to stdout
+* `--sim-only` — (Deprecated) simulate the transaction and only write the base64 xdr to stdout
 * `--send <SEND>` — Whether or not to send a transaction
 
   Default value: `default`
@@ -832,7 +832,7 @@ If no keys are specificed the contract itself is restored.
 * `--cost` — Output the cost execution to stderr
 * `--instructions <INSTRUCTIONS>` — Number of instructions to simulate
 * `--build-only` — Build the transaction and only write the base64 xdr to stdout
-* `--sim-only` — Simulate the transaction and only write the base64 xdr to stdout
+* `--sim-only` — (Deprecated) simulate the transaction and only write the base64 xdr to stdout
 
 
 
diff --git a/cmd/soroban-cli/src/fee.rs b/cmd/soroban-cli/src/fee.rs
index 698d66007..44de4be3d 100644
--- a/cmd/soroban-cli/src/fee.rs
+++ b/cmd/soroban-cli/src/fee.rs
@@ -1,9 +1,14 @@
 use clap::arg;
+use clap::builder::TypedValueParser;
 
 use soroban_env_host::xdr;
 use soroban_rpc::Assembled;
 
-use crate::commands::HEADING_RPC;
+use crate::{commands::HEADING_RPC, deprecated_arg};
+
+const DEPRECATION_MESSAGE: &str = "--sim-only is deprecated and will be removed \
+in the future versions of CLI. The same functionality is offered by `tx simulate` command. To \
+replicate the behaviour, you can run `stellar <command> --build only | stellar tx simulate`";
 
 #[derive(Debug, clap::Args, Clone)]
 #[group(skip)]
@@ -20,8 +25,13 @@ pub struct Args {
     /// Build the transaction and only write the base64 xdr to stdout
     #[arg(long, help_heading = HEADING_RPC)]
     pub build_only: bool,
-    /// Simulate the transaction and only write the base64 xdr to stdout
-    #[arg(long, help_heading = HEADING_RPC, conflicts_with = "build_only")]
+    /// (Deprecated) simulate the transaction and only write the base64 xdr to stdout
+    #[arg(
+        long,
+        help_heading = HEADING_RPC,
+        conflicts_with = "build_only",
+        value_parser = deprecated_arg!(bool, DEPRECATION_MESSAGE))
+    ]
     pub sim_only: bool,
 }
 
diff --git a/cmd/soroban-cli/src/utils.rs b/cmd/soroban-cli/src/utils.rs
index f5827f75b..45906a9c0 100644
--- a/cmd/soroban-cli/src/utils.rs
+++ b/cmd/soroban-cli/src/utils.rs
@@ -148,6 +148,26 @@ pub fn get_name_from_stellar_asset_contract_storage(storage: &ScMap) -> Option<S
     }
 }
 
+pub mod args {
+    /// Mark argument as deprecated with warning to be printed when it's used. Note: marco is only
+    /// supported for `bool` and `String` and is required to add
+    /// ```
+    /// use clap::builder::TypedValueParser;
+    /// ```
+    /// When using the marco
+    #[macro_export]
+    macro_rules! deprecated_arg {
+        (bool, $message: expr) => {
+            clap::builder::BoolValueParser::new().map(|x| {
+                if (x) {
+                    $crate::print::Print::new(false).warnln($message);
+                }
+                x
+            })
+        };
+    }
+}
+
 pub mod rpc {
     use soroban_env_host::xdr;
     use soroban_rpc::{Client, Error};