diff --git a/CHANGELOG.md b/CHANGELOG.md
index 47127509a7e..a96073a8bb4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -46,6 +46,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 * [#7181](https://github.com/osmosis-labs/osmosis/pull/7181) Improve errors for out of gas
 * [#7376](https://github.com/osmosis-labs/osmosis/pull/7376) Add uptime validation logic for `NoLock` (CL) gauges and switch CL gauge to pool ID links to be duration-based
+* [#7357](https://github.com/osmosis-labs/osmosis/pull/7357) Fix: Ensure rate limits are not applied to packets that aren't ics20s
 
 ### Bug Fixes
 
diff --git a/x/ibc-rate-limit/ibc_middleware_test.go b/x/ibc-rate-limit/ibc_middleware_test.go
index c8e0eaa9c15..bc9933bb8e0 100644
--- a/x/ibc-rate-limit/ibc_middleware_test.go
+++ b/x/ibc-rate-limit/ibc_middleware_test.go
@@ -2,6 +2,7 @@ package ibc_rate_limit_test
 
 import (
 	"fmt"
+	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
 	"strconv"
 	"strings"
 	"testing"
@@ -542,3 +543,23 @@ func (suite *MiddlewareTestSuite) TestUnsetRateLimitingContract() {
 	// N.B.: this panics if validation fails.
 	paramSpace.SetParamSet(suite.chainA.GetContext(), &params)
 }
+
+// Test rate limits are reverted if a "send" fails
+func (suite *MiddlewareTestSuite) TestNonICS20() {
+	suite.initializeEscrow()
+	// Setup contract
+	suite.chainA.StoreContractCode(&suite.Suite, "./bytecode/rate_limiter.wasm")
+	quotas := suite.BuildChannelQuota("weekly", "channel-0", sdk.DefaultBondDenom, 604800, 1, 1)
+	addr := suite.chainA.InstantiateRLContract(&suite.Suite, quotas)
+	suite.chainA.RegisterRateLimitingContract(addr)
+
+	osmosisApp := suite.chainA.GetOsmosisApp()
+
+	data := []byte("{}")
+	_, err := osmosisApp.RateLimitingICS4Wrapper.SendPacket(suite.chainA.GetContext(), capabilitytypes.NewCapability(1), "wasm.osmo1873ls0d60tg7hk00976teq9ywhzv45u3hk2urw8t3eau9eusa4eqtun9xn", "channel-0", clienttypes.NewHeight(0, 0), 1, data)
+
+	suite.Require().Error(err)
+	// This will error out, but not because of rate limiting
+	suite.Require().NotContains(err.Error(), "rate limit")
+	suite.Require().Contains(err.Error(), "channel not found")
+}
diff --git a/x/ibc-rate-limit/ics4_wrapper.go b/x/ibc-rate-limit/ics4_wrapper.go
index 3e29b3d71fc..c52f390c2e4 100644
--- a/x/ibc-rate-limit/ics4_wrapper.go
+++ b/x/ibc-rate-limit/ics4_wrapper.go
@@ -1,19 +1,21 @@
 package ibc_rate_limit
 
 import (
+	"encoding/json"
+
 	errorsmod "cosmossdk.io/errors"
+
 	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	sdk "github.com/cosmos/cosmos-sdk/types"
-	channeltypes "github.com/cosmos/ibc-go/v7/modules/core/04-channel/types"
-
 	authkeeper "github.com/cosmos/cosmos-sdk/x/auth/keeper"
 	bankkeeper "github.com/cosmos/cosmos-sdk/x/bank/keeper"
 	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
 	paramtypes "github.com/cosmos/cosmos-sdk/x/params/types"
+	transfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
 	clienttypes "github.com/cosmos/ibc-go/v7/modules/core/02-client/types"
+	channeltypes "github.com/cosmos/ibc-go/v7/modules/core/04-channel/types"
 	porttypes "github.com/cosmos/ibc-go/v7/modules/core/05-port/types"
 	"github.com/cosmos/ibc-go/v7/modules/core/exported"
-
 	"github.com/osmosis-labs/osmosis/v22/x/ibc-rate-limit/types"
 )
 
@@ -57,6 +59,13 @@ func NewICS4Middleware(
 // If the contract param is not configured, or the contract doesn't have a configuration for the (channel+denom) being
 // used, transfers are not prevented and handled by the wrapped IBC app
 func (i *ICS4Wrapper) SendPacket(ctx sdk.Context, chanCap *capabilitytypes.Capability, sourcePort, sourceChannel string, timeoutHeight clienttypes.Height, timeoutTimestamp uint64, data []byte) (uint64, error) {
+	var packetdata transfertypes.FungibleTokenPacketData
+	if err := json.Unmarshal(data, &packetdata); err != nil {
+		return i.channel.SendPacket(ctx, chanCap, sourcePort, sourceChannel, timeoutHeight, timeoutTimestamp, data)
+	}
+	if packetdata.Denom == "" || packetdata.Amount == "" {
+		return i.channel.SendPacket(ctx, chanCap, sourcePort, sourceChannel, timeoutHeight, timeoutTimestamp, data)
+	}
 	contract := i.GetContractAddress(ctx)
 	if contract == "" {
 		// The contract has not been configured. Continue as usual