diff --git a/x/evm/keeper/msg_server_test.go b/x/evm/keeper/msg_server_test.go
index 4a8c86cefa..e9062d4605 100644
--- a/x/evm/keeper/msg_server_test.go
+++ b/x/evm/keeper/msg_server_test.go
@@ -3,8 +3,10 @@ package keeper_test
 import (
 	"math/big"
 
+	sdk "github.com/cosmos/cosmos-sdk/types"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	"github.com/ethereum/go-ethereum/common"
 
 	ethtypes "github.com/ethereum/go-ethereum/core/types"
 	"github.com/ethereum/go-ethereum/params"
@@ -12,6 +14,10 @@ import (
 	"github.com/evmos/ethermint/x/evm/types"
 )
 
+const PrecompileNonce uint64 = 1
+
+var PrecompileCode = []byte{0x1}
+
 func (suite *KeeperTestSuite) TestEthereumTx() {
 	var (
 		err             error
@@ -115,3 +121,73 @@ func (suite *KeeperTestSuite) TestUpdateParams() {
 		})
 	}
 }
+
+func (suite *KeeperTestSuite) TestInitPrecompiles() {
+	addr1 := "0x1000000000000000000000000000000000000000"
+	addr2 := "0x2000000000000000000000000000000000000000"
+	addr3 := "0x3000000000000000000000000000000000000000"
+
+	testCases := []struct {
+		name               string
+		enabledPrecompiles []string
+		// precompiles which must be uninitialized after corresponding test case
+		uninitialized []string
+	}{
+		{
+			name:               "enable addr1 and addr2",
+			enabledPrecompiles: []string{addr1, addr2},
+			uninitialized:      []string{addr3},
+		},
+		{
+			name:               "enable addr3, and disable the rest",
+			enabledPrecompiles: []string{addr3},
+			uninitialized:      []string{addr1, addr2},
+		},
+		{
+			name:               "no changes",
+			enabledPrecompiles: []string{addr3},
+			uninitialized:      []string{addr1, addr2},
+		},
+		{
+			name:               "enable all precompiles",
+			enabledPrecompiles: []string{addr1, addr2, addr3},
+			uninitialized:      []string{},
+		},
+		{
+			name:               "disable all precompiles",
+			enabledPrecompiles: []string{},
+			uninitialized:      []string{addr1, addr2, addr3},
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+			params := suite.app.EvmKeeper.GetParams(suite.ctx)
+			params.EnabledPrecompiles = tc.enabledPrecompiles
+
+			_, err := suite.app.EvmKeeper.UpdateParams(sdk.WrapSDKContext(suite.ctx), &types.MsgUpdateParams{
+				Authority: authtypes.NewModuleAddress(govtypes.ModuleName).String(),
+				Params:    params,
+			})
+			suite.Require().NoError(err)
+
+			vmdb := suite.StateDB()
+
+			// check that precompiles are initialized
+			for _, hexAddr := range tc.enabledPrecompiles {
+				addr := common.HexToAddress(hexAddr)
+
+				suite.Require().Equal(PrecompileNonce, vmdb.GetNonce(addr))
+				suite.Require().Equal(PrecompileCode, vmdb.GetCode(addr))
+			}
+
+			// check that precompiles are uninitialized
+			for _, hexAddr := range tc.uninitialized {
+				addr := common.HexToAddress(hexAddr)
+
+				suite.Require().Equal(uint64(0), vmdb.GetNonce(addr))
+				suite.Require().Equal([]byte(nil), vmdb.GetCode(addr))
+			}
+		})
+	}
+}