diff --git a/x/wasm/keeper/contract.go b/x/wasm/keeper/contract.go
index f2c29b61e..c5f9b5a2a 100644
--- a/x/wasm/keeper/contract.go
+++ b/x/wasm/keeper/contract.go
@@ -437,6 +437,12 @@ func (k Keeper) queryToContract(ctx sdk.Context, contractAddress sdk.AccAddress,
 		wasmVM = wasmVMs[0]
 	}
 
+	// assert max depth to prevent stack overflow
+	if err := wasmVM.IncreaseQueryDepth(); err != nil {
+		return nil, err
+	}
+	defer wasmVM.DecreaseQueryDepth()
+
 	queryResult, gasUsed, err := wasmVM.Query(
 		codeInfo.CodeHash,
 		env,
diff --git a/x/wasm/keeper/keeper.go b/x/wasm/keeper/keeper.go
index 35d47e092..f71439dfa 100644
--- a/x/wasm/keeper/keeper.go
+++ b/x/wasm/keeper/keeper.go
@@ -70,16 +70,17 @@ func NewKeeper(
 		wasmConfig.WriteVMMemoryCacheSize = config.DefaultWriteVMMemoryCacheSize
 	}
 
-	writeWasmVM, err := wasmvm.NewVM(
+	var writeWasmVM types.WasmerEngine
+	if vm, err := wasmvm.NewVM(
 		filepath.Join(homePath, config.DBDir),
 		supportedFeatures,
 		types.ContractMemoryLimit,
 		wasmConfig.ContractDebugMode,
 		wasmConfig.WriteVMMemoryCacheSize,
-	)
-
-	if err != nil {
+	); err != nil {
 		panic(err)
+	} else {
+		writeWasmVM = types.NewWasmerEngineWithQueryDepth(vm)
 	}
 
 	// prevent zero read vm
@@ -95,16 +96,16 @@ func NewKeeper(
 	numReadVms := wasmConfig.NumReadVMs
 	wasmReadVMPool := make([]types.WasmerEngine, numReadVms)
 	for i := uint32(0); i < numReadVms; i++ {
-		wasmReadVMPool[i], err = wasmvm.NewVM(
+		if vm, err := wasmvm.NewVM(
 			filepath.Join(homePath, config.DBDir),
 			supportedFeatures,
 			types.ContractMemoryLimit,
 			wasmConfig.ContractDebugMode,
 			wasmConfig.ReadVMMemoryCacheSize,
-		)
-
-		if err != nil {
+		); err != nil {
 			panic(err)
+		} else {
+			wasmReadVMPool[i] = types.NewWasmerEngineWithQueryDepth(vm)
 		}
 	}
 
diff --git a/x/wasm/keeper/recursive_test.go b/x/wasm/keeper/recursive_test.go
index bba646065..b6989300e 100644
--- a/x/wasm/keeper/recursive_test.go
+++ b/x/wasm/keeper/recursive_test.go
@@ -342,3 +342,20 @@ func TestLimitRecursiveQueryGas(t *testing.T) {
 		})
 	}
 }
+
+func TestLimitRecursiveQueryDepth(t *testing.T) {
+
+	contractAddr, _, ctx, keeper, _ := initRecurseContract(t)
+	msg := buildQuery(t, Recurse{
+		Depth: types.ContractMaxQueryDepth - 1, // need to include first query
+	})
+
+	_, err := keeper.queryToContract(ctx, contractAddr, msg)
+	require.NoError(t, err)
+
+	msg = buildQuery(t, Recurse{
+		Depth: types.ContractMaxQueryDepth,
+	})
+	_, err = keeper.queryToContract(ctx, contractAddr, msg)
+	require.Error(t, err)
+}
diff --git a/x/wasm/types/errors.go b/x/wasm/types/errors.go
index f518d9124..d2083b75a 100644
--- a/x/wasm/types/errors.go
+++ b/x/wasm/types/errors.go
@@ -23,4 +23,5 @@ var (
 	ErrExceedMaxContractMsgSize  = sdkerrors.Register(ModuleName, 16, "exceeds max contract msg size limit")
 	ErrExceedMaxContractDataSize = sdkerrors.Register(ModuleName, 17, "exceeds max contract data size limit")
 	ErrReplyFailed               = sdkerrors.Register(ModuleName, 18, "reply wasm contract failed")
+	ErrExceedMaxQueryDepth       = sdkerrors.Register(ModuleName, 19, "exceed max query depth")
 )
diff --git a/x/wasm/types/wasmer_engine.go b/x/wasm/types/wasmer_engine.go
index 0309602c3..393462bb8 100644
--- a/x/wasm/types/wasmer_engine.go
+++ b/x/wasm/types/wasmer_engine.go
@@ -5,6 +5,40 @@ import (
 	wasmvmtypes "github.com/CosmWasm/wasmvm/types"
 )
 
+// ContractMaxQueryDepth maximum recursive query depth allowed
+const ContractMaxQueryDepth = 20
+
+var _ WasmerEngine = &WasmerEngineWithQueryDepth{}
+
+// WasmerEngineWithQueryDepth VM wrapper with depth counter to prevent
+// stack overflow
+type WasmerEngineWithQueryDepth struct {
+	*wasmvm.VM
+	QueryDepth uint8
+}
+
+// NewWasmerEngineWithQueryDepth wrap wasmer engine with query depth checker
+func NewWasmerEngineWithQueryDepth(wasmVM *wasmvm.VM) *WasmerEngineWithQueryDepth {
+	wasmerEngine := WasmerEngineWithQueryDepth{VM: wasmVM}
+	return &wasmerEngine
+}
+
+// IncreaseQueryDepth increase execution depth by 1 and check whether
+// the depth exceeds max one or not
+func (wasmer *WasmerEngineWithQueryDepth) IncreaseQueryDepth() error {
+	if wasmer.QueryDepth >= ContractMaxQueryDepth {
+		return ErrExceedMaxQueryDepth
+	}
+
+	wasmer.QueryDepth++
+	return nil
+}
+
+// DecreaseQueryDepth decrease execution depth by 1
+func (wasmer *WasmerEngineWithQueryDepth) DecreaseQueryDepth() {
+	wasmer.QueryDepth--
+}
+
 // WasmerEngine defines the WASM contract runtime engine.
 type WasmerEngine interface {
 
@@ -119,4 +153,11 @@ type WasmerEngine interface {
 
 	// Cleanup should be called when no longer using this to free resources on the rust-side
 	Cleanup()
+
+	// IncreaseQueryDepth will increase query depth by 1 and assert the current depth
+	// reached out the maximum
+	IncreaseQueryDepth() error
+
+	// DecreaseQueryDepth will decrease query depth by 1
+	DecreaseQueryDepth()
 }