diff --git a/CHANGELOG.md b/CHANGELOG.md
index f7f26cc4bb..a899fcf031 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 **Implemented Enhancements:**
 - Reject invalid events/attributes returned from contracts [\#560](https://github.com/CosmWasm/wasmd/pull/560)
+- IBC Query methods from Wasm contracts only return OPEN channels [\#568](https://github.com/CosmWasm/wasmd/pull/568)
 
 [Full Changelog](https://github.com/CosmWasm/wasmd/compare/v0.17.0...HEAD)
 
diff --git a/x/wasm/keeper/query_plugins.go b/x/wasm/keeper/query_plugins.go
index fff7953dc3..cba21cdfc7 100644
--- a/x/wasm/keeper/query_plugins.go
+++ b/x/wasm/keeper/query_plugins.go
@@ -198,7 +198,8 @@ func IBCQuerier(wasm contractMetaDataSource, channelKeeper types.ChannelKeeper)
 			portID := request.ListChannels.PortID
 			channels := make(wasmvmtypes.IBCChannels, 0)
 			channelKeeper.IterateChannels(ctx, func(ch channeltypes.IdentifiedChannel) bool {
-				if portID == "" || portID == ch.PortId {
+				// it must match the port and be in open state
+				if (portID == "" || portID == ch.PortId) && ch.State == channeltypes.OPEN {
 					newChan := wasmvmtypes.IBCChannel{
 						Endpoint: wasmvmtypes.IBCEndpoint{
 							PortID:    ch.PortId,
@@ -230,7 +231,8 @@ func IBCQuerier(wasm contractMetaDataSource, channelKeeper types.ChannelKeeper)
 			}
 			got, found := channelKeeper.GetChannel(ctx, portID, channelID)
 			var channel *wasmvmtypes.IBCChannel
-			if found {
+			// it must be in open state
+			if found && got.State == channeltypes.OPEN {
 				channel = &wasmvmtypes.IBCChannel{
 					Endpoint: wasmvmtypes.IBCEndpoint{
 						PortID:    portID,
diff --git a/x/wasm/keeper/query_plugins_test.go b/x/wasm/keeper/query_plugins_test.go
index 9baa9aa428..e9727b588d 100644
--- a/x/wasm/keeper/query_plugins_test.go
+++ b/x/wasm/keeper/query_plugins_test.go
@@ -14,6 +14,7 @@ import (
 
 func TestIBCQuerier(t *testing.T) {
 	myExampleChannels := []channeltypes.IdentifiedChannel{
+		// this is returned
 		{
 			State:    channeltypes.OPEN,
 			Ordering: channeltypes.ORDERED,
@@ -26,9 +27,22 @@ func TestIBCQuerier(t *testing.T) {
 			PortId:         "myPortID",
 			ChannelId:      "myChannelID",
 		},
+		// this is filtered out
 		{
 			State:    channeltypes.INIT,
 			Ordering: channeltypes.UNORDERED,
+			Counterparty: channeltypes.Counterparty{
+				PortId: "foobar",
+			},
+			ConnectionHops: []string{"one"},
+			Version:        "initversion",
+			PortId:         "initPortID",
+			ChannelId:      "initChannelID",
+		},
+		// this is returned
+		{
+			State:    channeltypes.OPEN,
+			Ordering: channeltypes.UNORDERED,
 			Counterparty: channeltypes.Counterparty{
 				PortId:    "otherCounterPartyPortID",
 				ChannelId: "otherCounterPartyChannelID",
@@ -38,6 +52,19 @@ func TestIBCQuerier(t *testing.T) {
 			PortId:         "otherPortID",
 			ChannelId:      "otherChannelID",
 		},
+		// this is filtered out
+		{
+			State:    channeltypes.CLOSED,
+			Ordering: channeltypes.ORDERED,
+			Counterparty: channeltypes.Counterparty{
+				PortId:    "super",
+				ChannelId: "duper",
+			},
+			ConnectionHops: []string{"no-more"},
+			Version:        "closedVersion",
+			PortId:         "closedPortID",
+			ChannelId:      "closedChannelID",
+		},
 	}
 	specs := map[string]struct {
 		srcQuery      *wasmvmtypes.IBCQuery
@@ -144,7 +171,7 @@ func TestIBCQuerier(t *testing.T) {
 			channelKeeper: &wasmtesting.MockChannelKeeper{
 				GetChannelFn: func(ctx sdk.Context, srcPort, srcChan string) (channel channeltypes.Channel, found bool) {
 					return channeltypes.Channel{
-						State:    channeltypes.INIT,
+						State:    channeltypes.OPEN,
 						Ordering: channeltypes.UNORDERED,
 						Counterparty: channeltypes.Counterparty{
 							PortId:    "counterPartyPortID",
@@ -183,7 +210,7 @@ func TestIBCQuerier(t *testing.T) {
 			channelKeeper: &wasmtesting.MockChannelKeeper{
 				GetChannelFn: func(ctx sdk.Context, srcPort, srcChan string) (channel channeltypes.Channel, found bool) {
 					return channeltypes.Channel{
-						State:    channeltypes.INIT,
+						State:    channeltypes.OPEN,
 						Ordering: channeltypes.UNORDERED,
 						Counterparty: channeltypes.Counterparty{
 							PortId:    "counterPartyPortID",
@@ -210,6 +237,51 @@ func TestIBCQuerier(t *testing.T) {
   }
 }`,
 		},
+		"query channel in init state": {
+			srcQuery: &wasmvmtypes.IBCQuery{
+				Channel: &wasmvmtypes.ChannelQuery{
+					PortID:    "myQueryPortID",
+					ChannelID: "myQueryChannelID",
+				},
+			},
+			channelKeeper: &wasmtesting.MockChannelKeeper{
+				GetChannelFn: func(ctx sdk.Context, srcPort, srcChan string) (channel channeltypes.Channel, found bool) {
+					return channeltypes.Channel{
+						State:    channeltypes.INIT,
+						Ordering: channeltypes.UNORDERED,
+						Counterparty: channeltypes.Counterparty{
+							PortId: "foobar",
+						},
+						ConnectionHops: []string{"one"},
+						Version:        "initversion",
+					}, true
+				},
+			},
+			expJsonResult: "{}",
+		},
+		"query channel in closed state": {
+			srcQuery: &wasmvmtypes.IBCQuery{
+				Channel: &wasmvmtypes.ChannelQuery{
+					PortID:    "myQueryPortID",
+					ChannelID: "myQueryChannelID",
+				},
+			},
+			channelKeeper: &wasmtesting.MockChannelKeeper{
+				GetChannelFn: func(ctx sdk.Context, srcPort, srcChan string) (channel channeltypes.Channel, found bool) {
+					return channeltypes.Channel{
+						State:    channeltypes.CLOSED,
+						Ordering: channeltypes.ORDERED,
+						Counterparty: channeltypes.Counterparty{
+							PortId:    "super",
+							ChannelId: "duper",
+						},
+						ConnectionHops: []string{"no-more"},
+						Version:        "closedVersion",
+					}, true
+				},
+			},
+			expJsonResult: "{}",
+		},
 		"query channel - empty result": {
 			srcQuery: &wasmvmtypes.IBCQuery{
 				Channel: &wasmvmtypes.ChannelQuery{