diff --git a/PENDING.md b/PENDING.md
index 3defb10e7d..050646593f 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -8,6 +8,7 @@ BREAKING CHANGES
   * [cli] [\#2728](https://github.com/cosmos/cosmos-sdk/pull/2728) Seperate `tx` and `query` subcommands by module
   * [cli] [\#2727](https://github.com/cosmos/cosmos-sdk/pull/2727) Fix unbonding command flow
   * [cli] [\#2786](https://github.com/cosmos/cosmos-sdk/pull/2786) Fix redelegation command flow
+  * [cli] [\#2829](https://github.com/cosmos/cosmos-sdk/pull/2829) add-genesis-account command now validates state when adding accounts
   * [cli] [\#2804](https://github.com/cosmos/cosmos-sdk/issues/2804) Check whether key exists before passing it on to `tx create-validator`.
 
 * Gaia
diff --git a/cmd/gaia/init/genesis_accts.go b/cmd/gaia/init/genesis_accts.go
index 3d43712fcc..04c1f6283c 100644
--- a/cmd/gaia/init/genesis_accts.go
+++ b/cmd/gaia/init/genesis_accts.go
@@ -1,6 +1,7 @@
 package init
 
 import (
+	"encoding/json"
 	"fmt"
 
 	"github.com/cosmos/cosmos-sdk/cmd/gaia/app"
@@ -48,11 +49,7 @@ func AddGenesisAccountCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command
 				return err
 			}
 
-			acc := auth.NewBaseAccountWithAddress(addr)
-			acc.Coins = coins
-			appState.Accounts = append(appState.Accounts, app.NewGenesisAccount(&acc))
-
-			appStateJSON, err := cdc.MarshalJSON(appState)
+			appStateJSON, err := addGenesisAccount(cdc, appState, addr, coins)
 			if err != nil {
 				return err
 			}
@@ -64,3 +61,16 @@ func AddGenesisAccountCmd(ctx *server.Context, cdc *codec.Codec) *cobra.Command
 	cmd.Flags().String(cli.HomeFlag, app.DefaultNodeHome, "node's home directory")
 	return cmd
 }
+
+func addGenesisAccount(cdc *codec.Codec, appState app.GenesisState, addr sdk.AccAddress, coins sdk.Coins) (json.RawMessage, error) {
+	for _, stateAcc := range appState.Accounts {
+		if stateAcc.Address.Equals(addr) {
+			return nil, fmt.Errorf("the application state already contains account %v", addr)
+		}
+	}
+
+	acc := auth.NewBaseAccountWithAddress(addr)
+	acc.Coins = coins
+	appState.Accounts = append(appState.Accounts, app.NewGenesisAccount(&acc))
+	return cdc.MarshalJSON(appState)
+}
diff --git a/cmd/gaia/init/genesis_accts_test.go b/cmd/gaia/init/genesis_accts_test.go
new file mode 100644
index 0000000000..8825a8cd34
--- /dev/null
+++ b/cmd/gaia/init/genesis_accts_test.go
@@ -0,0 +1,45 @@
+package init
+
+import (
+	"github.com/stretchr/testify/require"
+	"github.com/tendermint/tendermint/crypto/secp256k1"
+	"testing"
+
+	"github.com/cosmos/cosmos-sdk/cmd/gaia/app"
+	"github.com/cosmos/cosmos-sdk/codec"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+func TestAddGenesisAccount(t *testing.T) {
+	cdc := codec.New()
+	addr1 := sdk.AccAddress(secp256k1.GenPrivKey().PubKey().Address())
+	type args struct {
+		appState app.GenesisState
+		addr     sdk.AccAddress
+		coins    sdk.Coins
+	}
+	tests := []struct {
+		name    string
+		args    args
+		wantErr bool
+	}{
+		{
+			"valid account",
+		args{
+			app.GenesisState{},
+			addr1,
+			sdk.Coins{},
+		},
+		false},
+		{"dup account", args{
+			app.GenesisState{Accounts: []app.GenesisAccount{app.GenesisAccount{Address:addr1}}},
+			addr1,
+			sdk.Coins{}}, true},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			_, err := addGenesisAccount(cdc, tt.args.appState, tt.args.addr, tt.args.coins)
+			require.Equal(t, tt.wantErr, (err != nil))
+		})
+	}
+}