diff --git a/README.md b/README.md
index c8fc9549f5..fe0f6e3e2d 100644
--- a/README.md
+++ b/README.md
@@ -209,6 +209,7 @@ file of your custom chain.
 
 * `wasmtypes.MaxLabelSize = 64` to set the maximum label size on instantiation (default 128)
 * `wasmtypes.MaxWasmSize=777000` to set the max size of compiled wasm to be accepted (default 819200)
+* `wasmtypes.MaxProposalWasmSize=888000` to set the max size of gov proposal compiled wasm to be accepted (default 3145728)
 
 ## Genesis Configuration
 We strongly suggest **to limit the max block gas in the genesis** and not use the default value (`-1` for infinite).
diff --git a/x/wasm/types/genesis.go b/x/wasm/types/genesis.go
index a82893bd90..4d6775d02e 100644
--- a/x/wasm/types/genesis.go
+++ b/x/wasm/types/genesis.go
@@ -47,7 +47,7 @@ func (c Code) ValidateBasic() error {
 	if err := c.CodeInfo.ValidateBasic(); err != nil {
 		return sdkerrors.Wrap(err, "code info")
 	}
-	if err := validateWasmCode(c.CodeBytes); err != nil {
+	if err := validateWasmCode(c.CodeBytes, MaxProposalWasmSize); err != nil {
 		return sdkerrors.Wrap(err, "code bytes")
 	}
 	return nil
diff --git a/x/wasm/types/genesis_test.go b/x/wasm/types/genesis_test.go
index 5ddcb20885..f45d3f07f0 100644
--- a/x/wasm/types/genesis_test.go
+++ b/x/wasm/types/genesis_test.go
@@ -117,7 +117,7 @@ func TestCodeValidateBasic(t *testing.T) {
 		},
 		"codeBytes greater limit": {
 			srcMutator: func(c *Code) {
-				c.CodeBytes = bytes.Repeat([]byte{0x1}, MaxWasmSize+1)
+				c.CodeBytes = bytes.Repeat([]byte{0x1}, MaxProposalWasmSize+1)
 			},
 			expError: true,
 		},
diff --git a/x/wasm/types/proposal.go b/x/wasm/types/proposal.go
index 0b8f943264..e56300a911 100644
--- a/x/wasm/types/proposal.go
+++ b/x/wasm/types/proposal.go
@@ -119,7 +119,7 @@ func (p StoreCodeProposal) ValidateBasic() error {
 		return sdkerrors.Wrap(err, "run as")
 	}
 
-	if err := validateWasmCode(p.WASMByteCode); err != nil {
+	if err := validateWasmCode(p.WASMByteCode, MaxProposalWasmSize); err != nil {
 		return sdkerrors.Wrapf(sdkerrors.ErrInvalidRequest, "code bytes %s", err.Error())
 	}
 
@@ -303,7 +303,7 @@ func (p StoreAndInstantiateContractProposal) ValidateBasic() error {
 		return sdkerrors.Wrap(err, "run as")
 	}
 
-	if err := validateWasmCode(p.WASMByteCode); err != nil {
+	if err := validateWasmCode(p.WASMByteCode, MaxProposalWasmSize); err != nil {
 		return sdkerrors.Wrapf(sdkerrors.ErrInvalidRequest, "code bytes %s", err.Error())
 	}
 
diff --git a/x/wasm/types/proposal_test.go b/x/wasm/types/proposal_test.go
index 6657d11412..245184752b 100644
--- a/x/wasm/types/proposal_test.go
+++ b/x/wasm/types/proposal_test.go
@@ -138,7 +138,7 @@ func TestValidateStoreCodeProposal(t *testing.T) {
 		},
 		"wasm code invalid": {
 			src: StoreCodeProposalFixture(func(p *StoreCodeProposal) {
-				p.WASMByteCode = bytes.Repeat([]byte{0x0}, MaxWasmSize+1)
+				p.WASMByteCode = bytes.Repeat([]byte{0x0}, MaxProposalWasmSize+1)
 			}),
 			expErr: true,
 		},
@@ -299,7 +299,7 @@ func TestValidateStoreAndInstantiateContractProposal(t *testing.T) {
 		},
 		"wasm code invalid": {
 			src: StoreAndInstantiateContractProposalFixture(func(p *StoreAndInstantiateContractProposal) {
-				p.WASMByteCode = bytes.Repeat([]byte{0x0}, MaxWasmSize+1)
+				p.WASMByteCode = bytes.Repeat([]byte{0x0}, MaxProposalWasmSize+1)
 			}),
 			expErr: true,
 		},
diff --git a/x/wasm/types/tx.go b/x/wasm/types/tx.go
index dd6f6284cd..6742224df7 100644
--- a/x/wasm/types/tx.go
+++ b/x/wasm/types/tx.go
@@ -60,7 +60,7 @@ func (msg MsgStoreCode) ValidateBasic() error {
 		return err
 	}
 
-	if err := validateWasmCode(msg.WASMByteCode); err != nil {
+	if err := validateWasmCode(msg.WASMByteCode, MaxWasmSize); err != nil {
 		return sdkerrors.Wrapf(sdkerrors.ErrInvalidRequest, "code bytes %s", err.Error())
 	}
 
diff --git a/x/wasm/types/validation.go b/x/wasm/types/validation.go
index 908c525524..cf6b1511b2 100644
--- a/x/wasm/types/validation.go
+++ b/x/wasm/types/validation.go
@@ -13,14 +13,17 @@ var (
 
 	// MaxWasmSize is the largest a compiled contract code can be when storing code on chain
 	MaxWasmSize = 800 * 1024 // extension point for chains to customize via compile flag.
+
+	// MaxProposalWasmSize is the largest a gov proposal compiled contract code can be when storing code on chain
+	MaxProposalWasmSize = 3 * 1024 * 1024 // extension point for chains to customize via compile flag.
 )
 
-func validateWasmCode(s []byte) error {
+func validateWasmCode(s []byte, maxSize int) error {
 	if len(s) == 0 {
 		return sdkerrors.Wrap(ErrEmpty, "is required")
 	}
-	if len(s) > MaxWasmSize {
-		return sdkerrors.Wrapf(ErrLimit, "cannot be longer than %d bytes", MaxWasmSize)
+	if len(s) > maxSize {
+		return sdkerrors.Wrapf(ErrLimit, "cannot be longer than %d bytes", maxSize)
 	}
 	return nil
 }