diff --git a/x/genutil/client/cli/init.go b/x/genutil/client/cli/init.go
index f3a186b77fe8..91d0255dc802 100644
--- a/x/genutil/client/cli/init.go
+++ b/x/genutil/client/cli/init.go
@@ -163,6 +163,10 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 			genDoc.Validators = nil
 			genDoc.AppState = appState
 
+			if serverCtx.DefaultConsensusParams != nil {
+				genDoc.ConsensusParams = serverCtx.DefaultConsensusParams
+			}
+
 			if err = genutil.ExportGenesisFile(genDoc, genFile); err != nil {
 				return errors.Wrap(err, "Failed to export genesis file")
 			}
diff --git a/x/genutil/client/cli/init_test.go b/x/genutil/client/cli/init_test.go
index 705af61cace3..058c088565a2 100644
--- a/x/genutil/client/cli/init_test.go
+++ b/x/genutil/client/cli/init_test.go
@@ -14,6 +14,7 @@ import (
 	abci_server "github.com/tendermint/tendermint/abci/server"
 	"github.com/tendermint/tendermint/libs/cli"
 	"github.com/tendermint/tendermint/libs/log"
+	coretypes "github.com/tendermint/tendermint/types"
 
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/codec"
@@ -283,6 +284,43 @@ func TestInitConfig(t *testing.T) {
 	require.Contains(t, out, "\"chain_id\": \"foo\"")
 }
 
+func TestInitWithConsensusParams(t *testing.T) {
+	home := t.TempDir()
+	logger := log.NewNopLogger()
+	cfg, err := genutiltest.CreateDefaultTendermintConfig(home)
+	require.NoError(t, err)
+
+	serverCtx := server.NewContext(viper.New(), cfg, logger)
+
+	// set new default consensus params
+	cps := coretypes.DefaultConsensusParams()
+	cps.Block.MaxBytes = 100000000
+	cps.Block.MaxGas = 420420420
+	serverCtx.DefaultConsensusParams = cps
+
+	interfaceRegistry := types.NewInterfaceRegistry()
+	marshaler := codec.NewProtoCodec(interfaceRegistry)
+	clientCtx := client.Context{}.
+		WithCodec(marshaler).
+		WithLegacyAmino(makeCodec()).
+		WithHomeDir(home)
+
+	ctx := context.Background()
+	ctx = context.WithValue(ctx, client.ClientContextKey, &clientCtx)
+	ctx = context.WithValue(ctx, server.ServerContextKey, serverCtx)
+
+	cmd := genutilcli.InitCmd(testMbm, home)
+	cmd.SetArgs([]string{"testnode"})
+
+	err = cmd.ExecuteContext(ctx)
+	require.NoError(t, err)
+
+	genDoc, err := coretypes.GenesisDocFromFile(cfg.GenesisFile())
+	require.NoError(t, err)
+
+	require.Equal(t, genDoc.ConsensusParams, cps)
+}
+
 // custom tx codec
 func makeCodec() *codec.LegacyAmino {
 	cdc := codec.NewLegacyAmino()