diff --git a/x/wasm/genesis_test.go b/x/wasm/genesis_test.go
new file mode 100644
index 00000000000..f165c193e8f
--- /dev/null
+++ b/x/wasm/genesis_test.go
@@ -0,0 +1,93 @@
+package wasm
+
+import (
+	"encoding/json"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+func TestInitGenesis(t *testing.T) {
+	data, cleanup := setupTest(t)
+	defer cleanup()
+
+	deposit := sdk.NewCoins(sdk.NewInt64Coin("denom", 100000))
+	topUp := sdk.NewCoins(sdk.NewInt64Coin("denom", 5000))
+	creator := createFakeFundedAccount(data.ctx, data.acctKeeper, deposit.Add(deposit))
+	fred := createFakeFundedAccount(data.ctx, data.acctKeeper, topUp)
+
+	h := data.module.NewHandler()
+	q := data.module.NewQuerierHandler()
+
+	msg := MsgStoreCode{
+		Sender:       creator,
+		WASMByteCode: testContract,
+	}
+	res := h(data.ctx, msg)
+	require.True(t, res.IsOK())
+	require.Equal(t, res.Data, []byte("1"))
+
+	_, _, bob := keyPubAddr()
+	initMsg := initMsg{
+		Verifier:    fred.String(),
+		Beneficiary: bob.String(),
+	}
+	initMsgBz, err := json.Marshal(initMsg)
+	require.NoError(t, err)
+
+	initCmd := MsgInstantiateContract{
+		Sender:    creator,
+		Code:      1,
+		InitMsg:   initMsgBz,
+		InitFunds: deposit,
+	}
+	res = h(data.ctx, initCmd)
+	require.True(t, res.IsOK())
+	contractAddr := sdk.AccAddress(res.Data)
+
+	execCmd := MsgExecuteContract{
+		Sender:    fred,
+		Contract:  contractAddr,
+		Msg:       []byte("{}"),
+		SentFunds: topUp,
+	}
+	res = h(data.ctx, execCmd)
+	require.True(t, res.IsOK())
+
+	// ensure all contract state is as after init
+	assertCodeList(t, q, data.ctx, 1)
+	assertCodeBytes(t, q, data.ctx, 1, testContract)
+
+	assertContractList(t, q, data.ctx, []string{contractAddr.String()})
+	assertContractInfo(t, q, data.ctx, contractAddr, 1, creator)
+	assertContractState(t, q, data.ctx, contractAddr, state{
+		Verifier:    fred.String(),
+		Beneficiary: bob.String(),
+		Funder:      creator.String(),
+	})
+
+	// export into genstate
+	genState := ExportGenesis(data.ctx, data.keeper)
+
+	// create new app to import genstate into
+	newData, newCleanup := setupTest(t)
+	defer newCleanup()
+	q2 := newData.module.NewQuerierHandler()
+
+	// initialize new app with genstate
+	InitGenesis(newData.ctx, newData.keeper, genState)
+
+	// run same checks again on newdata, to make sure it was reinitialized correctly
+	assertCodeList(t, q2, newData.ctx, 1)
+	assertCodeBytes(t, q2, newData.ctx, 1, testContract)
+
+	assertContractList(t, q2, newData.ctx, []string{contractAddr.String()})
+	assertContractInfo(t, q2, newData.ctx, contractAddr, 1, creator)
+	assertContractState(t, q2, newData.ctx, contractAddr, state{
+		Verifier:    fred.String(),
+		Beneficiary: bob.String(),
+		Funder:      creator.String(),
+	})
+}
diff --git a/x/wasm/module_test.go b/x/wasm/module_test.go
index eb9d83a6c82..15dafb3533c 100644
--- a/x/wasm/module_test.go
+++ b/x/wasm/module_test.go
@@ -23,6 +23,7 @@ type testData struct {
 	module     module.AppModule
 	ctx        sdk.Context
 	acctKeeper auth.AccountKeeper
+	keeper     Keeper
 }
 
 // returns a cleanup function, which must be defered on
@@ -35,6 +36,7 @@ func setupTest(t *testing.T) (testData, func()) {
 		module:     NewAppModule(keeper),
 		ctx:        ctx,
 		acctKeeper: acctKeeper,
+		keeper:     keeper,
 	}
 	cleanup := func() { os.RemoveAll(tempDir) }
 	return data, cleanup