diff --git a/x/protocolpool/keeper/keeper.go b/x/protocolpool/keeper/keeper.go
index f9dd892674..a74bdc6253 100644
--- a/x/protocolpool/keeper/keeper.go
+++ b/x/protocolpool/keeper/keeper.go
@@ -270,6 +270,17 @@ func (k Keeper) iterateAndUpdateFundsDistribution(ctx context.Context, toDistrib
 		if err != nil {
 			return true, err
 		}
+
+		cf, err := k.ContinuousFund.Get(ctx, key)
+		if err != nil {
+			return true, err
+		}
+
+		// Check if the continuous fund has expired
+		if cf.Expiry != nil && cf.Expiry.Before(k.HeaderService.HeaderInfo(ctx).Time) {
+			return false, nil
+		}
+
 		totalPercentageToBeDistributed = totalPercentageToBeDistributed.Add(value)
 		recipientFundList = append(recipientFundList, recipientFund{
 			RecipientAddr: addr,
diff --git a/x/protocolpool/keeper/keeper_test.go b/x/protocolpool/keeper/keeper_test.go
index 6df649c7b7..fccb8722b3 100644
--- a/x/protocolpool/keeper/keeper_test.go
+++ b/x/protocolpool/keeper/keeper_test.go
@@ -95,11 +95,11 @@ func (s *KeeperTestSuite) mockSendCoinsFromModuleToAccount(accAddr sdk.AccAddres
 }
 
 func (s *KeeperTestSuite) mockWithdrawContinuousFund() {
-	s.authKeeper.EXPECT().GetModuleAccount(s.ctx, types.ModuleName).Return(poolAcc).AnyTimes()
+	s.authKeeper.EXPECT().GetModuleAccount(gomock.Any(), types.ModuleName).Return(poolAcc).AnyTimes()
 	distrBal := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, math.NewInt(100000)))
-	s.bankKeeper.EXPECT().GetAllBalances(s.ctx, gomock.Any()).Return(distrBal).AnyTimes()
-	s.bankKeeper.EXPECT().SendCoinsFromModuleToAccount(s.ctx, gomock.Any(), gomock.Any(), gomock.Any()).AnyTimes()
-	s.stakingKeeper.EXPECT().BondDenom(s.ctx).AnyTimes()
+	s.bankKeeper.EXPECT().GetAllBalances(gomock.Any(), gomock.Any()).Return(distrBal).AnyTimes()
+	s.bankKeeper.EXPECT().SendCoinsFromModuleToAccount(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).AnyTimes()
+	s.stakingKeeper.EXPECT().BondDenom(gomock.Any()).Return("stake", nil).AnyTimes()
 }
 
 func (s *KeeperTestSuite) mockStreamFunds() {
diff --git a/x/protocolpool/keeper/msg_server_test.go b/x/protocolpool/keeper/msg_server_test.go
index 9b17b3cda2..683fd21f59 100644
--- a/x/protocolpool/keeper/msg_server_test.go
+++ b/x/protocolpool/keeper/msg_server_test.go
@@ -968,3 +968,62 @@ func (suite *KeeperTestSuite) TestCancelContinuousFund() {
 		})
 	}
 }
+
+// TestWithdrawExpiredFunds checks that a continuous fund cannot be withdrawn if it has expired.
+// There was a case in which an expired continuous fund would keep getting funds allocated when
+// other funds were withdrawn. These funds would then get withdrawn if CancelContinuousFund was called.
+func (suite *KeeperTestSuite) TestWithdrawExpiredFunds() {
+	suite.SetupTest()
+	recipientStrAddr, err := codectestutil.CodecOptions{}.GetAddressCodec().BytesToString(recipientAddr)
+	suite.Require().NoError(err)
+	recipient2 := sdk.AccAddress([]byte("recipientAddr2___________________"))
+	recipient2StrAddr, err := codectestutil.CodecOptions{}.GetAddressCodec().BytesToString(recipient2)
+	suite.Require().NoError(err)
+
+	expiration := suite.environment.HeaderService.HeaderInfo(suite.ctx).Time.Add(24 * time.Hour)
+	_, err = suite.msgServer.CreateContinuousFund(suite.ctx, &types.MsgCreateContinuousFund{
+		Authority:  suite.poolKeeper.GetAuthority(),
+		Recipient:  recipientStrAddr,
+		Percentage: math.LegacyMustNewDecFromStr("0.5"),
+		Expiry:     &expiration,
+	})
+	suite.Require().NoError(err)
+
+	_, err = suite.msgServer.CreateContinuousFund(suite.ctx, &types.MsgCreateContinuousFund{
+		Authority:  suite.poolKeeper.GetAuthority(),
+		Recipient:  recipient2StrAddr,
+		Percentage: math.LegacyMustNewDecFromStr("0.5"),
+	})
+	suite.Require().NoError(err)
+
+	toDistribute := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, math.NewInt(100000)))
+	suite.mockStreamFunds()
+	err = suite.poolKeeper.SetToDistribute(suite.ctx, toDistribute, suite.poolKeeper.GetAuthority())
+	suite.Require().NoError(err)
+
+	suite.mockWithdrawContinuousFund()
+	_, err = suite.msgServer.WithdrawContinuousFund(suite.ctx, &types.MsgWithdrawContinuousFund{RecipientAddress: recipientStrAddr})
+	suite.Require().NoError(err)
+
+	header := suite.ctx.HeaderInfo()
+	header.Time = expiration.Add(1 * time.Second)
+	suite.ctx = suite.ctx.WithHeaderInfo(header)
+
+	_, err = suite.msgServer.WithdrawContinuousFund(suite.ctx, &types.MsgWithdrawContinuousFund{RecipientAddress: recipientStrAddr})
+	suite.Require().ErrorContains(err, "continuous fund expired for recipient")
+
+	suite.mockStreamFunds()
+	err = suite.poolKeeper.SetToDistribute(suite.ctx, toDistribute, suite.poolKeeper.GetAuthority())
+	suite.Require().NoError(err)
+
+	suite.mockWithdrawContinuousFund()
+	_, err = suite.msgServer.WithdrawContinuousFund(suite.ctx, &types.MsgWithdrawContinuousFund{RecipientAddress: recipient2StrAddr})
+	suite.Require().NoError(err)
+
+	res, err := suite.msgServer.CancelContinuousFund(suite.ctx, &types.MsgCancelContinuousFund{
+		Authority:        suite.poolKeeper.GetAuthority(),
+		RecipientAddress: recipientStrAddr,
+	})
+	suite.Require().NoError(err)
+	suite.Require().Equal(sdk.NewCoin(sdk.DefaultBondDenom, math.NewInt(0)), res.WithdrawnAllocatedFund)
+}