diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3749ef3c21..43dab52c41 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -219,6 +219,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 * [\#10561](https://github.com/cosmos/cosmos-sdk/pull/10561) The `CommitMultiStore` interface contains a new `SetIAVLCacheSize` method
 * [\#10922](https://github.com/cosmos/cosmos-sdk/pull/10922), [/#10956](https://github.com/cosmos/cosmos-sdk/pull/10956) Deprecate key `server.Generate*` functions and move them to `testutil` and support custom mnemonics in in-process testing network. Moved `TestMnemonic` from `testutil` package to `testdata`.
+* [\#11049](https://github.com/cosmos/cosmos-sdk/pull/11049) Add custom tendermint config variables into root command. Allows App developers to set config.toml variables. 
 
 ### Features
 
diff --git a/server/util.go b/server/util.go
index 16c9f3a185..dcdeb3ff58 100644
--- a/server/util.go
+++ b/server/util.go
@@ -105,7 +105,7 @@ func bindFlags(basename string, cmd *cobra.Command, v *viper.Viper) (err error)
 // is used to read and parse the application configuration. Command handlers can
 // fetch the server Context to get the Tendermint configuration or to get access
 // to Viper.
-func InterceptConfigsPreRunHandler(cmd *cobra.Command, customAppConfigTemplate string, customAppConfig interface{}) error {
+func InterceptConfigsPreRunHandler(cmd *cobra.Command, customAppConfigTemplate string, customAppConfig interface{}, tmConfig *tmcfg.Config) error {
 	serverCtx := NewDefaultContext()
 
 	// Get the executable name and configure the viper instance so that environmental
@@ -126,7 +126,7 @@ func InterceptConfigsPreRunHandler(cmd *cobra.Command, customAppConfigTemplate s
 	serverCtx.Viper.AutomaticEnv()
 
 	// intercept configuration files, using both Viper instances separately
-	config, err := interceptConfigs(serverCtx.Viper, customAppConfigTemplate, customAppConfig)
+	config, err := interceptConfigs(serverCtx.Viper, customAppConfigTemplate, customAppConfig, tmConfig)
 	if err != nil {
 		return err
 	}
@@ -184,12 +184,12 @@ func SetCmdServerContext(cmd *cobra.Command, serverCtx *Context) error {
 // configuration file. The Tendermint configuration file is parsed given a root
 // Viper object, whereas the application is parsed with the private package-aware
 // viperCfg object.
-func interceptConfigs(rootViper *viper.Viper, customAppTemplate string, customConfig interface{}) (*tmcfg.Config, error) {
+func interceptConfigs(rootViper *viper.Viper, customAppTemplate string, customConfig interface{}, tmConfig *tmcfg.Config) (*tmcfg.Config, error) {
 	rootDir := rootViper.GetString(flags.FlagHome)
 	configPath := filepath.Join(rootDir, "config")
 	tmCfgFile := filepath.Join(configPath, "config.toml")
 
-	conf := tmcfg.DefaultConfig()
+	conf := tmConfig
 
 	switch _, err := os.Stat(tmCfgFile); {
 	case os.IsNotExist(err):
diff --git a/server/util_test.go b/server/util_test.go
index 77bbbbc951..4a297af460 100644
--- a/server/util_test.go
+++ b/server/util_test.go
@@ -12,6 +12,7 @@ import (
 
 	"github.com/spf13/cobra"
 	"github.com/stretchr/testify/require"
+	tmcfg "github.com/tendermint/tendermint/config"
 
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/client/flags"
@@ -27,7 +28,7 @@ var cancelledInPreRun = errors.New("Cancelled in prerun")
 // Used in each test to run the function under test via Cobra
 // but to always halt the command
 func preRunETestImpl(cmd *cobra.Command, args []string) error {
-	err := server.InterceptConfigsPreRunHandler(cmd, "", nil)
+	err := server.InterceptConfigsPreRunHandler(cmd, "", nil, tmcfg.DefaultConfig())
 	if err != nil {
 		return err
 	}
@@ -432,7 +433,7 @@ func TestEmptyMinGasPrices(t *testing.T) {
 	// Run StartCmd.
 	cmd = server.StartCmd(nil, tempDir)
 	cmd.PreRunE = func(cmd *cobra.Command, _ []string) error {
-		return server.InterceptConfigsPreRunHandler(cmd, "", nil)
+		return server.InterceptConfigsPreRunHandler(cmd, "", nil, tmcfg.DefaultConfig())
 	}
 	err = cmd.ExecuteContext(ctx)
 	require.Errorf(t, err, sdkerrors.ErrAppConfig.Error())
diff --git a/simapp/simd/cmd/root.go b/simapp/simd/cmd/root.go
index eee610d941..d1425eb892 100644
--- a/simapp/simd/cmd/root.go
+++ b/simapp/simd/cmd/root.go
@@ -8,6 +8,7 @@ import (
 
 	"github.com/spf13/cast"
 	"github.com/spf13/cobra"
+	tmcfg "github.com/tendermint/tendermint/config"
 	tmcli "github.com/tendermint/tendermint/libs/cli"
 	"github.com/tendermint/tendermint/libs/log"
 	dbm "github.com/tendermint/tm-db"
@@ -71,8 +72,9 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 			}
 
 			customAppTemplate, customAppConfig := initAppConfig()
+			customTMConfig := initTendermintConfig()
 
-			return server.InterceptConfigsPreRunHandler(cmd, customAppTemplate, customAppConfig)
+			return server.InterceptConfigsPreRunHandler(cmd, customAppTemplate, customAppConfig, customTMConfig)
 		},
 	}
 
@@ -81,6 +83,18 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 	return rootCmd, encodingConfig
 }
 
+// initTendermintConfig helps to override default Tendermint Config values.
+// return tmcfg.DefaultConfig if no custom configuration is required for the application.
+func initTendermintConfig() *tmcfg.Config {
+	cfg := tmcfg.DefaultConfig()
+
+	// these values put a higher strain on node memory
+	// cfg.P2P.MaxNumInboundPeers = 100
+	// cfg.P2P.MaxNumOutboundPeers = 40
+
+	return cfg
+}
+
 // initAppConfig helps to override default appConfig template and configs.
 // return "", nil if no custom configuration is required for the application.
 func initAppConfig() (string, interface{}) {