diff --git a/CHANGELOG.md b/CHANGELOG.md
index 506fa7d1480..92a0ab77b5c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -56,6 +56,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## Misc Improvements
   * [#4131](https://github.com/osmosis-labs/osmosis/pull/4141) Add GatherValuesFromStorePrefixWithKeyParser function to osmoutils.
+  * [#4388](https://github.com/osmosis-labs/osmosis/pull/4388) Increase the max allowed contract size for non-proposal contracts to 3MB
 
 ### API breaks
 
diff --git a/app/app.go b/app/app.go
index ee9ad2b7d06..8311f3f3986 100644
--- a/app/app.go
+++ b/app/app.go
@@ -164,7 +164,7 @@ func initReusablePackageInjections() {
 //   - allow for larger wasm files
 func overrideWasmVariables() {
 	// Override Wasm size limitation from WASMD.
-	wasmtypes.MaxWasmSize = 2 * 1024 * 1024
+	wasmtypes.MaxWasmSize = 3 * 1024 * 1024
 	wasmtypes.MaxProposalWasmSize = wasmtypes.MaxWasmSize
 }