diff --git a/x/core/02_post_dispatch/keeper/hook_igp.go b/x/core/02_post_dispatch/keeper/hook_igp.go
index 32d27918..06f9201e 100644
--- a/x/core/02_post_dispatch/keeper/hook_igp.go
+++ b/x/core/02_post_dispatch/keeper/hook_igp.go
@@ -52,7 +52,7 @@ func (i InterchainGasPaymasterHookHandler) PayForGas(ctx context.Context, hookId
 		return sdk.NewCoins(), err
 	}
 
-	if requiredPayment.IsAllGT(maxFee) {
+	if !maxFee.IsAllGTE(requiredPayment) {
 		return sdk.NewCoins(), fmt.Errorf("required payment exceeds max hyperlane fee: %v", requiredPayment)
 	}
 
diff --git a/x/core/02_post_dispatch/keeper/hook_igp_test.go b/x/core/02_post_dispatch/keeper/hook_igp_test.go
new file mode 100644
index 00000000..0c4027b0
--- /dev/null
+++ b/x/core/02_post_dispatch/keeper/hook_igp_test.go
@@ -0,0 +1,101 @@
+package keeper_test
+
+import (
+	"cosmossdk.io/math"
+
+	i "github.com/bcp-innovations/hyperlane-cosmos/tests/integration"
+	"github.com/bcp-innovations/hyperlane-cosmos/util"
+	"github.com/bcp-innovations/hyperlane-cosmos/x/core/02_post_dispatch/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/gogoproto/proto"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+)
+
+var _ = Describe("hook_igp_test.go", Ordered, func() {
+	var s *i.KeeperTestSuite
+	var creator i.TestValidatorAddress
+
+	var mailboxId util.HexAddress
+	var hookId util.HexAddress
+
+	const igpDenom = "uatom"
+	const actualDenom = "uosmo"
+
+	BeforeEach(func() {
+		s = i.NewCleanChain()
+		creator = i.GenerateTestValidatorAddress("Creator")
+
+		err := s.MintBaseCoins(creator.Address, 1_000_000)
+		Expect(err).To(BeNil())
+
+		mailboxId, err = createDummyMailbox(s, creator.Address)
+		Expect(err).To(BeNil())
+
+		hookId, err = createDummyIgp(s, creator.Address, igpDenom)
+		Expect(err).To(BeNil())
+
+		_, err = s.RunTx(&types.MsgSetDestinationGasConfig{
+			Owner: creator.Address,
+			IgpId: hookId,
+			DestinationGasConfig: &types.DestinationGasConfig{
+				RemoteDomain: 2,
+				GasOracle: &types.GasOracle{
+					TokenExchangeRate: math.NewInt(1e10),
+					GasPrice:          math.NewInt(1e9),
+				},
+				GasOverhead: math.NewInt(100000),
+			},
+		})
+		Expect(err).To(BeNil())
+	})
+
+	It("IGP PayForGas should fail when any required payment exceeds maxFee", func() {
+		recipient, err := util.DecodeHexAddress("0x00000000000000000000000000000000000000000000000000000000deadbeef")
+		Expect(err).To(BeNil())
+
+		sender, err := util.DecodeHexAddress("0x0000000000000000000000007fa9385be102ac3eac297483dd6233d62b3e1496")
+		Expect(err).To(BeNil())
+
+		message := util.HyperlaneMessage{
+			Version:     1,
+			Nonce:       0,
+			Origin:      1,
+			Sender:      sender,
+			Destination: 2,
+			Recipient:   recipient,
+			Body:        []byte("test"),
+		}
+
+		metadata := util.StandardHookMetadata{
+			Address:            creator.AccAddress,
+			GasLimit:           math.NewInt(100000),
+			CustomHookMetadata: nil,
+		}
+
+		// igpDenom != actualDenom
+		maxFee := sdk.NewCoins(sdk.NewCoin(actualDenom, math.NewInt(50)))
+
+		_, err = s.App().HyperlaneKeeper.PostDispatch(s.Ctx(), mailboxId, hookId, metadata, message, maxFee)
+		Expect(err).To(HaveOccurred())
+		Expect(err.Error()).To(ContainSubstring("required payment exceeds max hyperlane fee"))
+	})
+})
+
+func createDummyIgp(s *i.KeeperTestSuite, creator string, denom string) (util.HexAddress, error) {
+	res, err := s.RunTx(&types.MsgCreateIgp{
+		Owner: creator,
+		Denom: denom,
+	})
+	if err != nil {
+		return [32]byte{}, err
+	}
+
+	var response types.MsgCreateIgpResponse
+	err = proto.Unmarshal(res.MsgResponses[0].Value, &response)
+	if err != nil {
+		return [32]byte{}, err
+	}
+
+	return response.Id, nil
+}