diff --git a/modules/apps/27-interchain-accounts/host/keeper/account.go b/modules/apps/27-interchain-accounts/host/keeper/account.go
new file mode 100644
index 00000000000..d9e213f4ace
--- /dev/null
+++ b/modules/apps/27-interchain-accounts/host/keeper/account.go
@@ -0,0 +1,26 @@
+package keeper
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+
+	"github.com/cosmos/ibc-go/v2/modules/apps/27-interchain-accounts/types"
+)
+
+// RegisterInterchainAccount attempts to create a new account using the provided address and stores it in state keyed by the provided port identifier
+// If an account for the provided address already exists this function returns early (no-op)
+func (k Keeper) RegisterInterchainAccount(ctx sdk.Context, accAddr sdk.AccAddress, controllerPortID string) {
+	if acc := k.accountKeeper.GetAccount(ctx, accAddr); acc != nil {
+		return
+	}
+
+	interchainAccount := types.NewInterchainAccount(
+		authtypes.NewBaseAccountWithAddress(accAddr),
+		controllerPortID,
+	)
+
+	k.accountKeeper.NewAccount(ctx, interchainAccount)
+	k.accountKeeper.SetAccount(ctx, interchainAccount)
+
+	k.SetInterchainAccountAddress(ctx, controllerPortID, interchainAccount.Address)
+}
diff --git a/modules/apps/27-interchain-accounts/host/keeper/account_test.go b/modules/apps/27-interchain-accounts/host/keeper/account_test.go
new file mode 100644
index 00000000000..65ce1646905
--- /dev/null
+++ b/modules/apps/27-interchain-accounts/host/keeper/account_test.go
@@ -0,0 +1,33 @@
+package keeper_test
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+
+	"github.com/cosmos/ibc-go/v2/modules/apps/27-interchain-accounts/types"
+	ibctesting "github.com/cosmos/ibc-go/v2/testing"
+)
+
+func (suite *KeeperTestSuite) TestRegisterInterchainAccount() {
+	suite.SetupTest()
+
+	path := NewICAPath(suite.chainA, suite.chainB)
+	suite.coordinator.SetupConnections(path)
+
+	// InitInterchainAccount
+	err := SetupICAPath(path, TestOwnerAddress)
+	suite.Require().NoError(err)
+
+	portID, err := types.GeneratePortID(TestOwnerAddress, ibctesting.FirstConnectionID, ibctesting.FirstConnectionID)
+	suite.Require().NoError(err)
+
+	// Get the address of the interchain account stored in state during handshake step
+	storedAddr, found := suite.chainB.GetSimApp().ICAHostKeeper.GetInterchainAccountAddress(suite.chainB.GetContext(), portID)
+	suite.Require().True(found)
+
+	icaAddr, err := sdk.AccAddressFromBech32(storedAddr)
+	suite.Require().NoError(err)
+
+	// Check if account is created
+	interchainAccount := suite.chainB.GetSimApp().AccountKeeper.GetAccount(suite.chainB.GetContext(), icaAddr)
+	suite.Require().Equal(interchainAccount.GetAddress().String(), storedAddr)
+}
diff --git a/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go b/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go
index 65b9a159945..fde51a961ff 100644
--- a/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go
+++ b/modules/apps/27-interchain-accounts/host/keeper/handshake_test.go
@@ -168,7 +168,6 @@ func (suite *KeeperTestSuite) TestOnChanOpenTry() {
 			} else {
 				suite.Require().Error(err)
 			}
-
 		})
 	}
 }
diff --git a/modules/apps/27-interchain-accounts/host/keeper/keeper.go b/modules/apps/27-interchain-accounts/host/keeper/keeper.go
index bd21aa90397..44735ae81ea 100644
--- a/modules/apps/27-interchain-accounts/host/keeper/keeper.go
+++ b/modules/apps/27-interchain-accounts/host/keeper/keeper.go
@@ -8,7 +8,6 @@ import (
 	"github.com/cosmos/cosmos-sdk/codec"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
-	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	capabilitykeeper "github.com/cosmos/cosmos-sdk/x/capability/keeper"
 	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
 	"github.com/tendermint/tendermint/libs/log"
@@ -59,23 +58,6 @@ func (k Keeper) Logger(ctx sdk.Context) log.Logger {
 	return ctx.Logger().With("module", fmt.Sprintf("x/%s-%s", host.ModuleName, types.ModuleName))
 }
 
-// RegisterInterchainAccount attempts to create a new account using the provided address and stores it in state keyed by the provided port identifier
-// If an account for the provided address already exists this function returns early (no-op)
-func (k Keeper) RegisterInterchainAccount(ctx sdk.Context, accAddr sdk.AccAddress, controllerPortID string) {
-	if acc := k.accountKeeper.GetAccount(ctx, accAddr); acc != nil {
-		return
-	}
-
-	interchainAccount := types.NewInterchainAccount(
-		authtypes.NewBaseAccountWithAddress(accAddr),
-		controllerPortID,
-	)
-
-	k.accountKeeper.NewAccount(ctx, interchainAccount)
-	k.accountKeeper.SetAccount(ctx, interchainAccount)
-	k.SetInterchainAccountAddress(ctx, controllerPortID, interchainAccount.Address)
-}
-
 // BindPort stores the provided portID and binds to it, returning the associated capability
 func (k Keeper) BindPort(ctx sdk.Context, portID string) *capabilitytypes.Capability {
 	store := ctx.KVStore(k.storeKey)
diff --git a/modules/apps/27-interchain-accounts/host/keeper/relay_test.go b/modules/apps/27-interchain-accounts/host/keeper/relay_test.go
index 7bb47ed88a6..9109f7559e5 100644
--- a/modules/apps/27-interchain-accounts/host/keeper/relay_test.go
+++ b/modules/apps/27-interchain-accounts/host/keeper/relay_test.go
@@ -344,6 +344,20 @@ func (suite *KeeperTestSuite) TestOnRecvPacket() {
 			err := SetupICAPath(path, TestOwnerAddress)
 			suite.Require().NoError(err)
 
+			portID, err := types.GeneratePortID(TestOwnerAddress, ibctesting.FirstConnectionID, ibctesting.FirstConnectionID)
+			suite.Require().NoError(err)
+
+			// Get the address of the interchain account stored in state during handshake step
+			storedAddr, found := suite.chainB.GetSimApp().ICAHostKeeper.GetInterchainAccountAddress(suite.chainB.GetContext(), portID)
+			suite.Require().True(found)
+
+			icaAddr, err := sdk.AccAddressFromBech32(storedAddr)
+			suite.Require().NoError(err)
+
+			// Check if account is created
+			interchainAccount := suite.chainB.GetSimApp().AccountKeeper.GetAccount(suite.chainB.GetContext(), icaAddr)
+			suite.Require().Equal(interchainAccount.GetAddress().String(), storedAddr)
+
 			suite.fundICAWallet(suite.chainB.GetContext(), path.EndpointA.ChannelConfig.PortID, sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(10000))))
 
 			tc.malleate() // malleate mutates test data