diff --git a/demo/app/wasm.go b/demo/app/wasm.go
index 688ed5c3..d435d332 100644
--- a/demo/app/wasm.go
+++ b/demo/app/wasm.go
@@ -10,6 +10,7 @@ func AllCapabilities() []string {
 		"stargate",
 		"cosmwasm_1_1",
 		"cosmwasm_1_2",
+		"cosmwasm_1_3",
 		"virtual_staking",
 	}
 }
diff --git a/x/meshsecurity/keeper/test_common.go b/x/meshsecurity/keeper/test_common.go
index 49c97873..9ab85e43 100644
--- a/x/meshsecurity/keeper/test_common.go
+++ b/x/meshsecurity/keeper/test_common.go
@@ -264,7 +264,7 @@ func CreateDefaultTestInput(t testing.TB, opts ...Option) (sdk.Context, TestKeep
 		querier,
 		t.TempDir(),
 		wasmtypes.DefaultWasmConfig(),
-		"iterator,staking,stargate,cosmwasm_1_1,cosmwasm_1_2,virtual_staking",
+		"iterator,staking,stargate,cosmwasm_1_1,cosmwasm_1_2,cosmwasm_1_3,virtual_staking",
 		authtypes.NewModuleAddress(govtypes.ModuleName).String(),
 	)
 	require.NoError(t, wasmKeeper.SetParams(ctx, wasmtypes.DefaultParams()))