diff --git a/.changelog/unreleased/features/1237-unpack-wasm-client-state.md b/.changelog/unreleased/features/1237-unpack-wasm-client-state.md
new file mode 100644
index 000000000..68c1d29f2
--- /dev/null
+++ b/.changelog/unreleased/features/1237-unpack-wasm-client-state.md
@@ -0,0 +1,2 @@
+- Unpack Wasm client state at `ConnectionOpenTry` and `ConnectionOpenAck` for
+  host client state. ([#1237](https://github.com/cosmos/ibc-rs/issues/1237)).
diff --git a/ci/cw-check/Cargo.lock b/ci/cw-check/Cargo.lock
index a97424c34..a4fa71c13 100644
--- a/ci/cw-check/Cargo.lock
+++ b/ci/cw-check/Cargo.lock
@@ -627,6 +627,18 @@ dependencies = [
  "ibc-app-transfer",
 ]
 
+[[package]]
+name = "ibc-client-wasm-types"
+version = "0.53.0"
+dependencies = [
+ "base64 0.21.7",
+ "displaydoc",
+ "ibc-core-client",
+ "ibc-core-host-types",
+ "ibc-primitives",
+ "ibc-proto",
+]
+
 [[package]]
 name = "ibc-core"
 version = "0.53.0"
@@ -742,11 +754,13 @@ dependencies = [
 name = "ibc-core-connection"
 version = "0.53.0"
 dependencies = [
+ "ibc-client-wasm-types",
  "ibc-core-client",
  "ibc-core-connection-types",
  "ibc-core-handler-types",
  "ibc-core-host",
  "ibc-primitives",
+ "prost",
 ]
 
 [[package]]
@@ -1125,9 +1139,9 @@ dependencies = [
 
 [[package]]
 name = "proc-macro2"
-version = "1.0.84"
+version = "1.0.85"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ec96c6a92621310b51366f1e28d05ef11489516e93be030060e5fc12024a49d6"
+checksum = "22244ce15aa966053a896d1accb3a6e68469b97c7f33f284b99f0d576879fc23"
 dependencies = [
  "unicode-ident",
 ]
diff --git a/ci/no-std-check/Cargo.lock b/ci/no-std-check/Cargo.lock
index f16deb620..74d87e54e 100644
--- a/ci/no-std-check/Cargo.lock
+++ b/ci/no-std-check/Cargo.lock
@@ -14,9 +14,9 @@ dependencies = [
 
 [[package]]
 name = "addr2line"
-version = "0.21.0"
+version = "0.22.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8a30b2e23b9e17a9f90641c7ab1549cd9b44f296d3ccbf309d2863cfe398a0cb"
+checksum = "6e4503c46a5c0c7844e948c9a4d6acd9f50cccb4de1c48eb9e291ea17470c678"
 dependencies = [
  "gimli",
 ]
@@ -96,9 +96,9 @@ dependencies = [
 
 [[package]]
 name = "anyhow"
-version = "1.0.83"
+version = "1.0.86"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "25bdb32cbbdce2b519a9cd7df3a678443100e265d5e25ca763b7572a5104f5f3"
+checksum = "b3d1d046238990b9cf5bcde22a3fb3584ee5cf65fb2765f454ed428c7a0063da"
 
 [[package]]
 name = "ark-bls12-377"
@@ -231,9 +231,9 @@ dependencies = [
 
 [[package]]
 name = "array-bytes"
-version = "6.2.2"
+version = "6.2.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6f840fb7195bcfc5e17ea40c26e5ce6d5b9ce5d584466e17703209657e459ae0"
+checksum = "5d5dde061bd34119e902bbb2d9b90c5692635cf59fb91d582c2b68043f1b8293"
 
 [[package]]
 name = "arrayref"
@@ -255,9 +255,9 @@ checksum = "0c4b4d0bd25bd0b74681c0ad21497610ce1b7c91b1022cd21c80c6fbdd9476b0"
 
 [[package]]
 name = "backtrace"
-version = "0.3.71"
+version = "0.3.72"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "26b05800d2e817c8b3b4b54abd461726265fa9789ae34330622f2db9ee696f9d"
+checksum = "17c6a35df3749d2e8bb1b7b21a976d82b15548788d2735b9d82f329268f71a11"
 dependencies = [
  "addr2line",
  "cc",
@@ -391,47 +391,26 @@ dependencies = [
 
 [[package]]
 name = "borsh"
-version = "0.10.3"
+version = "1.5.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4114279215a005bc675e386011e594e1d9b800918cea18fcadadcce864a2046b"
+checksum = "a6362ed55def622cddc70a4746a68554d7b687713770de539e59a739b249f8ed"
 dependencies = [
  "borsh-derive",
- "hashbrown 0.13.2",
+ "cfg_aliases",
 ]
 
 [[package]]
 name = "borsh-derive"
-version = "0.10.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "0754613691538d51f329cce9af41d7b7ca150bc973056f1156611489475f54f7"
-dependencies = [
- "borsh-derive-internal",
- "borsh-schema-derive-internal",
- "proc-macro-crate 0.1.5",
- "proc-macro2",
- "syn 1.0.109",
-]
-
-[[package]]
-name = "borsh-derive-internal"
-version = "0.10.3"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "afb438156919598d2c7bad7e1c0adf3d26ed3840dbc010db1a882a65583ca2fb"
-dependencies = [
- "proc-macro2",
- "quote",
- "syn 1.0.109",
-]
-
-[[package]]
-name = "borsh-schema-derive-internal"
-version = "0.10.3"
+version = "1.5.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "634205cc43f74a1b9046ef87c4540ebda95696ec0f315024860cad7c5b0f5ccd"
+checksum = "c3ef8005764f53cd4dca619f5bf64cafd4664dada50ece25e4d81de54c80cc0b"
 dependencies = [
+ "once_cell",
+ "proc-macro-crate",
  "proc-macro2",
  "quote",
- "syn 1.0.109",
+ "syn 2.0.66",
+ "syn_derive",
 ]
 
 [[package]]
@@ -484,9 +463,9 @@ dependencies = [
 
 [[package]]
 name = "cc"
-version = "1.0.97"
+version = "1.0.98"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "099a5357d84c4c61eb35fc8eafa9a79a902c2f76911e5747ced4e032edd8d9b4"
+checksum = "41c270e7540d725e65ac7f1b212ac8ce349719624d7bcff99f8e2e488e8cf03f"
 
 [[package]]
 name = "cfg-if"
@@ -494,6 +473,12 @@ version = "1.0.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "baf1de4339761588bc0619e3cbc0120ee582ebb74b53b4efbf79117bd2da40fd"
 
+[[package]]
+name = "cfg_aliases"
+version = "0.2.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "613afe47fcd5fac7ccf1db93babcb082c5994d996f20b8b159f2ad1658eb5724"
+
 [[package]]
 name = "chrono"
 version = "0.4.38"
@@ -622,7 +607,7 @@ checksum = "f46882e17999c6cc590af592290432be3bce0428cb0d5f8b6715e4dc7b383eb3"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -676,7 +661,7 @@ checksum = "d65d7ce8132b7c0e54497a4d9a55a1c2a0912a0d786cf894472ba818fba45762"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -719,7 +704,7 @@ checksum = "487585f4d0c6655fe74905e2504d8ad6908e4db67f744eb140876906c2f3175d"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -743,9 +728,9 @@ dependencies = [
  "proc-macro2",
  "quote",
  "regex",
- "syn 2.0.63",
+ "syn 2.0.66",
  "termcolor",
- "toml 0.8.12",
+ "toml",
  "walkdir",
 ]
 
@@ -844,9 +829,9 @@ dependencies = [
 
 [[package]]
 name = "either"
-version = "1.11.0"
+version = "1.12.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a47c1c47d2f5964e29c61246e81db715514cd532db6b5116a25ea3c03d6780a2"
+checksum = "3dca9240753cf90908d7e4aac30f630662b02aebaa1b58a3cadabdb23385b58b"
 
 [[package]]
 name = "elliptic-curve"
@@ -891,7 +876,7 @@ dependencies = [
  "prettier-please",
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1003,7 +988,7 @@ checksum = "87750cf4b7a4c0625b1529e4c543c2182106e4dedc60a2a6455e00d212c489ac"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1070,9 +1055,9 @@ dependencies = [
 
 [[package]]
 name = "gimli"
-version = "0.28.1"
+version = "0.29.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4271d37baee1b8c7e4b708028c57d816cf9d2434acb33a549475f78c181f6253"
+checksum = "40ecd4077b5ae9fd2e9e169b102c6c330d0605168eb0e8bf79952b256dbefffd"
 
 [[package]]
 name = "group"
@@ -1138,9 +1123,9 @@ checksum = "7f24254aa9a54b5c858eaee2f5bccdb46aaf0e486a595ed5fd8f86ba55232a70"
 
 [[package]]
 name = "hex-conservative"
-version = "0.1.1"
+version = "0.1.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "30ed443af458ccb6d81c1e7e661545f94d3176752fb1df2f543b902a1e0f51e2"
+checksum = "212ab92002354b4819390025006c897e8140934349e8635c9b077f47b4dcbd20"
 
 [[package]]
 name = "hmac"
@@ -1533,7 +1518,7 @@ version = "0.7.0"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -1551,9 +1536,9 @@ dependencies = [
 
 [[package]]
 name = "ibc-proto"
-version = "0.44.0"
+version = "0.45.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "66080040d5a4800d52966d55b055400f86b79c34b854b935bef03c87aacda62a"
+checksum = "7002e679ad26dc29bd27dfa490bb689d121d03c1512bed9f646f75028165644d"
 dependencies = [
  "base64 0.22.1",
  "borsh",
@@ -1710,9 +1695,9 @@ checksum = "e2abad23fbc42b3700f2f279844dc832adb2b2eb069b2df918f455c4e18cc646"
 
 [[package]]
 name = "libc"
-version = "0.2.154"
+version = "0.2.155"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ae743338b92ff9146ce83992f766a31066a91a8c84a45e0e9f21e7cf6de6d346"
+checksum = "97b3888a4aecf77e811145cadf6eef5901f4782c53886191b2f693f24761847c"
 
 [[package]]
 name = "libsecp256k1"
@@ -1816,9 +1801,9 @@ dependencies = [
 
 [[package]]
 name = "miniz_oxide"
-version = "0.7.2"
+version = "0.7.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9d811f3e15f28568be3407c8e7fdb6514c1cda3cb30683f15b6a1a1dc4ea14a7"
+checksum = "87dfd01fe195c66b572b37921ad8803d010623c0aca821bea2302239d155cdae"
 dependencies = [
  "adler",
 ]
@@ -1833,7 +1818,7 @@ dependencies = [
  "sp-io",
  "sp-runtime",
  "sp-std",
- "syn 2.0.63",
+ "syn 2.0.66",
  "tendermint",
  "tendermint-light-client-verifier",
  "tendermint-proto",
@@ -1901,9 +1886,9 @@ dependencies = [
 
 [[package]]
 name = "object"
-version = "0.32.2"
+version = "0.35.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a6a622008b6e321afc04970976f62ee297fdbaa6f95318ca343e3eebb9648441"
+checksum = "b8ec7ab813848ba4522158d5517a6093db1ded27575b070f4177b8d12b41db5e"
 dependencies = [
  "memchr",
 ]
@@ -1954,7 +1939,7 @@ version = "3.6.12"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d830939c76d294956402033aee57a6da7b438f2294eb94864c37b0569053a42c"
 dependencies = [
- "proc-macro-crate 3.1.0",
+ "proc-macro-crate",
  "proc-macro2",
  "quote",
  "syn 1.0.109",
@@ -1962,9 +1947,9 @@ dependencies = [
 
 [[package]]
 name = "parking_lot"
-version = "0.12.2"
+version = "0.12.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "7e4af0ca4f6caed20e900d564c242b8e5d4903fdacf31d3daf527b66fe6f42fb"
+checksum = "f1bf18183cf54e8d6059647fc3063646a1801cf30896933ec2311622cc4b9a27"
 dependencies = [
  "lock_api",
  "parking_lot_core",
@@ -2062,7 +2047,7 @@ dependencies = [
  "polkavm-common",
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2072,7 +2057,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "8ba81f7b5faac81e528eb6158a6f3c9e0bb1008e0ffa19653bc8dea925ecb429"
 dependencies = [
  "polkavm-derive-impl",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2094,7 +2079,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "22020dfcf177fcc7bf5deaf7440af371400c67c0de14c399938d8ed4fb4645d3"
 dependencies = [
  "proc-macro2",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2112,36 +2097,50 @@ dependencies = [
 
 [[package]]
 name = "proc-macro-crate"
-version = "0.1.5"
+version = "3.1.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1d6ea3c4595b96363c13943497db34af4460fb474a95c43f4446ad341b8c9785"
+checksum = "6d37c51ca738a55da99dc0c4a34860fd675453b8b36209178c2249bb13651284"
 dependencies = [
- "toml 0.5.11",
+ "toml_edit 0.21.1",
 ]
 
 [[package]]
-name = "proc-macro-crate"
-version = "3.1.0"
+name = "proc-macro-error"
+version = "1.0.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6d37c51ca738a55da99dc0c4a34860fd675453b8b36209178c2249bb13651284"
+checksum = "da25490ff9892aab3fcf7c36f08cfb902dd3e71ca0f9f9517bea02a73a5ce38c"
 dependencies = [
- "toml_edit 0.21.1",
+ "proc-macro-error-attr",
+ "proc-macro2",
+ "quote",
+ "version_check",
+]
+
+[[package]]
+name = "proc-macro-error-attr"
+version = "1.0.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a1be40180e52ecc98ad80b184934baf3d0d29f979574e439af5a55274b35f869"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "version_check",
 ]
 
 [[package]]
 name = "proc-macro2"
-version = "1.0.82"
+version = "1.0.85"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8ad3d49ab951a01fbaafe34f2ec74122942fe18a3f9814c3268f1bb72042131b"
+checksum = "22244ce15aa966053a896d1accb3a6e68469b97c7f33f284b99f0d576879fc23"
 dependencies = [
  "unicode-ident",
 ]
 
 [[package]]
 name = "prost"
-version = "0.12.4"
+version = "0.12.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d0f5d036824e4761737860779c906171497f6d55681139d8312388f8fe398922"
+checksum = "deb1435c188b76130da55f17a466d252ff7b1418b2ad3e037d127b94e3411f29"
 dependencies = [
  "bytes",
  "prost-derive",
@@ -2149,22 +2148,22 @@ dependencies = [
 
 [[package]]
 name = "prost-derive"
-version = "0.12.5"
+version = "0.12.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9554e3ab233f0a932403704f1a1d08c30d5ccd931adfdfa1e8b5a19b52c1d55a"
+checksum = "81bddcdb20abf9501610992b6759a4c888aef7d1a7247ef75e2404275ac24af1"
 dependencies = [
  "anyhow",
  "itertools 0.12.1",
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
 name = "prost-types"
-version = "0.12.4"
+version = "0.12.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "3235c33eb02c1f1e212abdbe34c78b264b038fb58ca612664343271e36e55ffe"
+checksum = "9091c90b0a32608e984ff2fa4091273cbdd755d54935c51d520887f4a1dbd5b0"
 dependencies = [
  "prost",
 ]
@@ -2246,7 +2245,7 @@ checksum = "bcc303e793d3734489387d205e9b186fac9c6cfacedd98cbb2e8a5943595f3e6"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2335,9 +2334,9 @@ dependencies = [
 
 [[package]]
 name = "rustversion"
-version = "1.0.16"
+version = "1.0.17"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "092474d1a01ea8278f69e6a358998405fae5b8b963ddaeb2b0b04a128bf1dfb0"
+checksum = "955d28af4278de8121b7ebeb796b6a45735dc01436d898801014aced2773a3d6"
 
 [[package]]
 name = "ryu"
@@ -2374,7 +2373,7 @@ version = "2.11.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "2d35494501194174bda522a32605929eefc9ecf7e0a326c26db1fdd85881eb62"
 dependencies = [
- "proc-macro-crate 3.1.0",
+ "proc-macro-crate",
  "proc-macro2",
  "quote",
  "syn 1.0.109",
@@ -2382,9 +2381,9 @@ dependencies = [
 
 [[package]]
 name = "schnellru"
-version = "0.2.2"
+version = "0.2.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6b0cf7da6fc4477944d5529807234f66802fcb618fc62b9c05bedca7f9be6c43"
+checksum = "c9a8ef13a93c54d20580de1e5c413e624e53121d42fc7e2c11d10ef7f8b02367"
 dependencies = [
  "ahash 0.8.11",
  "cfg-if",
@@ -2466,9 +2465,9 @@ checksum = "61697e0a1c7e512e84a621326239844a24d8207b4669b41bc18b32ea5cbf988b"
 
 [[package]]
 name = "serde"
-version = "1.0.201"
+version = "1.0.203"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "780f1cebed1629e4753a1a38a3c72d30b97ec044f0aef68cb26650a3c5cf363c"
+checksum = "7253ab4de971e72fb7be983802300c30b5a7f0c2e56fab8abfc6a214307c0094"
 dependencies = [
  "serde_derive",
 ]
@@ -2493,13 +2492,13 @@ dependencies = [
 
 [[package]]
 name = "serde_derive"
-version = "1.0.201"
+version = "1.0.203"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c5e405930b9796f1c00bee880d03fc7e0bb4b9a11afc776885ffe84320da2865"
+checksum = "500cbc0ebeb6f46627f50f3f5811ccf6bf00643be300b4c3eabc0ef55dc5b5ba"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2521,14 +2520,14 @@ checksum = "6c64451ba24fc7a6a2d60fc75dd9c83c90903b19028d4eff35e88fc1e86564e9"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
 name = "serde_spanned"
-version = "0.6.5"
+version = "0.6.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "eb3622f419d1296904700073ea6cc23ad690adbd66f13ea683df73298736f0c1"
+checksum = "79e674e01f999af37c49f70a6ede167a8a60b2503e56c5599532a65baa5969a0"
 dependencies = [
  "serde",
 ]
@@ -2716,7 +2715,7 @@ checksum = "48d09fa0a5f7299fb81ee25ae3853d26200f7a348148aed6de76be905c007dbe"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -2833,10 +2832,10 @@ checksum = "0195f32c628fee3ce1dfbbf2e7e52a30ea85f3589da9fe62a8b816d70fc06294"
 dependencies = [
  "Inflector",
  "expander",
- "proc-macro-crate 3.1.0",
+ "proc-macro-crate",
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -3019,15 +3018,27 @@ dependencies = [
 
 [[package]]
 name = "syn"
-version = "2.0.63"
+version = "2.0.66"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "bf5be731623ca1a1fb7d8be6f261a3be6d3e2337b8a1f97be944d020c8fcb704"
+checksum = "c42f3f41a2de00b01c0aaad383c5a45241efc8b2d1eda5661812fda5f3cdcff5"
 dependencies = [
  "proc-macro2",
  "quote",
  "unicode-ident",
 ]
 
+[[package]]
+name = "syn_derive"
+version = "0.1.8"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1329189c02ff984e9736652b1631330da25eaa6bc639089ed4915d25446cbe7b"
+dependencies = [
+ "proc-macro-error",
+ "proc-macro2",
+ "quote",
+ "syn 2.0.66",
+]
+
 [[package]]
 name = "tap"
 version = "1.0.1"
@@ -3103,22 +3114,22 @@ dependencies = [
 
 [[package]]
 name = "thiserror"
-version = "1.0.60"
+version = "1.0.61"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "579e9083ca58dd9dcf91a9923bb9054071b9ebbd800b342194c9feb0ee89fc18"
+checksum = "c546c80d6be4bc6a00c0f01730c08df82eaa7a7a61f11d656526506112cc1709"
 dependencies = [
  "thiserror-impl",
 ]
 
 [[package]]
 name = "thiserror-impl"
-version = "1.0.60"
+version = "1.0.61"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e2470041c06ec3ac1ab38d0356a6119054dedaea53e12fbefc0de730a1c08524"
+checksum = "46c3384250002a6d5af4d114f2845d37b57521033f30d5c3f46c4d70e1197533"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -3177,30 +3188,21 @@ checksum = "1f3ccbac311fea05f86f61904b462b55fb3df8837a366dfc601a0161d0532f20"
 
 [[package]]
 name = "toml"
-version = "0.5.11"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "f4f7f0dd8d50a853a531c426359045b1998f04219d88799810762cd4ad314234"
-dependencies = [
- "serde",
-]
-
-[[package]]
-name = "toml"
-version = "0.8.12"
+version = "0.8.14"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e9dd1545e8208b4a5af1aa9bbd0b4cf7e9ea08fabc5d0a5c67fcaafa17433aa3"
+checksum = "6f49eb2ab21d2f26bd6db7bf383edc527a7ebaee412d17af4d40fdccd442f335"
 dependencies = [
  "serde",
  "serde_spanned",
  "toml_datetime",
- "toml_edit 0.22.12",
+ "toml_edit 0.22.14",
 ]
 
 [[package]]
 name = "toml_datetime"
-version = "0.6.5"
+version = "0.6.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "3550f4e9685620ac18a50ed434eb3aec30db8ba93b0287467bca5826ea25baf1"
+checksum = "4badfd56924ae69bcc9039335b2e017639ce3f9b001c393c1b2d1ef846ce2cbf"
 dependencies = [
  "serde",
 ]
@@ -3218,15 +3220,15 @@ dependencies = [
 
 [[package]]
 name = "toml_edit"
-version = "0.22.12"
+version = "0.22.14"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d3328d4f68a705b2a4498da1d580585d39a6510f98318a2cec3018a7ec61ddef"
+checksum = "f21c7aaf97f1bd9ca9d4f9e73b0a6c74bd5afef56f2bc931943a6e1c37e04e38"
 dependencies = [
  "indexmap",
  "serde",
  "serde_spanned",
  "toml_datetime",
- "winnow 0.6.8",
+ "winnow 0.6.11",
 ]
 
 [[package]]
@@ -3248,7 +3250,7 @@ checksum = "34704c8d6ebcbc939824180af020566b01a7c01f80641264eba0999f6c2b6be7"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
@@ -3391,9 +3393,9 @@ checksum = "49874b5167b65d7193b8aba1567f5c7d93d001cafc34600cee003eda787e483f"
 
 [[package]]
 name = "w3f-bls"
-version = "0.1.3"
+version = "0.1.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "7335e4c132c28cc43caef6adb339789e599e39adbe78da0c4d547fad48cbc331"
+checksum = "9c5da5fa2c6afa2c9158eaa7cd9aee249765eb32b5fb0c63ad8b9e79336a47ec"
 dependencies = [
  "ark-bls12-377",
  "ark-bls12-381",
@@ -3450,7 +3452,7 @@ dependencies = [
  "once_cell",
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
  "wasm-bindgen-shared",
 ]
 
@@ -3472,7 +3474,7 @@ checksum = "e94f17b526d0a461a191c78ea52bbce64071ed5c04c9ffe424dcb38f74171bb7"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
  "wasm-bindgen-backend",
  "wasm-bindgen-shared",
 ]
@@ -3607,9 +3609,9 @@ dependencies = [
 
 [[package]]
 name = "winnow"
-version = "0.6.8"
+version = "0.6.11"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c3c52e9c97a68071b23e836c9380edae937f17b9c4667bd021973efc689f618d"
+checksum = "56c52728401e1dc672a56e81e593e912aa54c78f40246869f78359a2bf24d29d"
 dependencies = [
  "memchr",
 ]
@@ -3640,14 +3642,14 @@ checksum = "15e934569e47891f7d9411f1a451d947a60e000ab3bd24fbb970f000387d1b3b"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
 
 [[package]]
 name = "zeroize"
-version = "1.7.0"
+version = "1.8.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "525b4ec142c6b68a2d10f01f7bbf6755599ca3f81ea53b8431b7dd348f5fdb2d"
+checksum = "ced3678a2879b30306d323f4542626697a464a97c0a07c9aebf7ebca65cd4dde"
 dependencies = [
  "zeroize_derive",
 ]
@@ -3660,5 +3662,5 @@ checksum = "ce36e65b0d2999d2aafac989fb249189a141aee1f53c612c1f37d72631959f69"
 dependencies = [
  "proc-macro2",
  "quote",
- "syn 2.0.63",
+ "syn 2.0.66",
 ]
diff --git a/ibc-core/ics03-connection/Cargo.toml b/ibc-core/ics03-connection/Cargo.toml
index 7cea316c2..199fba177 100644
--- a/ibc-core/ics03-connection/Cargo.toml
+++ b/ibc-core/ics03-connection/Cargo.toml
@@ -23,6 +23,9 @@ ibc-core-connection-types = { workspace = true }
 ibc-core-host             = { workspace = true }
 ibc-core-handler-types    = { workspace = true }
 ibc-primitives            = { workspace = true }
+ibc-client-wasm-types     = { workspace = true, optional = true }
+
+prost = { workspace = true, optional = true }
 
 [features]
 default = [ "std" ]
@@ -32,6 +35,7 @@ std = [
   "ibc-core-host/std",
   "ibc-core-handler-types/std",
   "ibc-primitives/std",
+  "wasm-wrapped-client-state",
 ]
 serde = [
   "ibc-core-client/serde",
@@ -63,3 +67,7 @@ parity-scale-codec = [
   "ibc-core-handler-types/parity-scale-codec",
   "ibc-primitives/parity-scale-codec",
 ]
+wasm-wrapped-client-state = [
+  "dep:ibc-client-wasm-types",
+  "dep:prost",
+]
diff --git a/ibc-core/ics03-connection/src/handler/conn_open_ack.rs b/ibc-core/ics03-connection/src/handler/conn_open_ack.rs
index a0630ef33..590fc260d 100644
--- a/ibc-core/ics03-connection/src/handler/conn_open_ack.rs
+++ b/ibc-core/ics03-connection/src/handler/conn_open_ack.rs
@@ -15,6 +15,8 @@ use ibc_primitives::prelude::*;
 use ibc_primitives::proto::{Any, Protobuf};
 use ibc_primitives::ToVec;
 
+use crate::handler::unpack_host_client_state;
+
 pub fn validate<Ctx>(ctx_a: &Ctx, msg: MsgConnectionOpenAck) -> Result<(), ContextError>
 where
     Ctx: ValidationContext,
@@ -48,8 +50,10 @@ where
 
     let client_val_ctx_a = ctx_a.get_client_validation_context();
 
-    let client_state_of_a_on_b =
-        Ctx::HostClientState::try_from(msg.client_state_of_a_on_b.clone()).map_err(Into::into)?;
+    let client_state_of_a_on_b = unpack_host_client_state::<Ctx::HostClientState>(
+        msg.client_state_of_a_on_b.clone(),
+        vars.client_id_on_b(),
+    )?;
 
     ctx_a.validate_self_client(client_state_of_a_on_b)?;
 
diff --git a/ibc-core/ics03-connection/src/handler/conn_open_try.rs b/ibc-core/ics03-connection/src/handler/conn_open_try.rs
index e85828e7e..a866c56c6 100644
--- a/ibc-core/ics03-connection/src/handler/conn_open_try.rs
+++ b/ibc-core/ics03-connection/src/handler/conn_open_try.rs
@@ -16,6 +16,8 @@ use ibc_primitives::prelude::*;
 use ibc_primitives::proto::{Any, Protobuf};
 use ibc_primitives::ToVec;
 
+use crate::handler::unpack_host_client_state;
+
 pub fn validate<Ctx>(ctx_b: &Ctx, msg: MsgConnectionOpenTry) -> Result<(), ContextError>
 where
     Ctx: ValidationContext,
@@ -38,8 +40,10 @@ where
 
     let client_val_ctx_b = ctx_b.get_client_validation_context();
 
-    let client_state_of_b_on_a =
-        Ctx::HostClientState::try_from(msg.client_state_of_b_on_a.clone()).map_err(Into::into)?;
+    let client_state_of_b_on_a = unpack_host_client_state::<Ctx::HostClientState>(
+        msg.client_state_of_b_on_a.clone(),
+        &vars.client_id_on_a,
+    )?;
 
     ctx_b.validate_self_client(client_state_of_b_on_a)?;
 
diff --git a/ibc-core/ics03-connection/src/handler/mod.rs b/ibc-core/ics03-connection/src/handler/mod.rs
index c504edc00..a0c0378ca 100644
--- a/ibc-core/ics03-connection/src/handler/mod.rs
+++ b/ibc-core/ics03-connection/src/handler/mod.rs
@@ -1,4 +1,55 @@
+use ibc_core_client::types::error::ClientError;
+use ibc_core_handler_types::error::ContextError;
+use ibc_core_host::types::identifiers::ClientId;
+use ibc_primitives::proto::Any;
+
 pub mod conn_open_ack;
 pub mod conn_open_confirm;
 pub mod conn_open_init;
 pub mod conn_open_try;
+
+/// Unpacks the client state from the provided [`Any`] type.
+///
+/// Currently, the IBC-go enabled chains stores Wasm LightClient states in a
+/// WasmClientState wrapper. This function unpacks the client state from
+/// the WasmClientState wrapper if the client identifier is of Wasm client type.
+pub(crate) fn unpack_host_client_state<CS>(
+    value: Any,
+    host_client_id_at_counterparty: &ClientId,
+) -> Result<CS, ContextError>
+where
+    CS: TryFrom<Any>,
+    <CS as TryFrom<Any>>::Error: Into<ClientError>,
+{
+    #[cfg(feature = "wasm-wrapped-client-state")]
+    if host_client_id_at_counterparty.is_wasm_client_id() {
+        use ibc_client_wasm_types::client_state::ClientState as WasmClientState;
+        use ibc_core_connection_types::error::ConnectionError;
+        use ibc_primitives::prelude::ToString;
+        use prost::Message;
+
+        let wasm_client_state = WasmClientState::try_from(value).map_err(|e| {
+            ContextError::ConnectionError(ConnectionError::InvalidClientState {
+                reason: e.to_string(),
+            })
+        })?;
+
+        let any_client_state = <Any as Message>::decode(wasm_client_state.data.as_slice())
+            .map_err(|e| {
+                ContextError::ConnectionError(ConnectionError::InvalidClientState {
+                    reason: e.to_string(),
+                })
+            })?;
+
+        Ok(CS::try_from(any_client_state).map_err(Into::<ClientError>::into)?)
+    } else {
+        Ok(CS::try_from(value).map_err(Into::<ClientError>::into)?)
+    }
+
+    #[cfg(not(feature = "wasm-wrapped-client-state"))]
+    {
+        // this avoids lint warning for unused variable.
+        let _ = host_client_id_at_counterparty;
+        Ok(CS::try_from(value).map_err(Into::<ClientError>::into)?)
+    }
+}
diff --git a/ibc-core/ics24-host/types/src/identifiers/client_id.rs b/ibc-core/ics24-host/types/src/identifiers/client_id.rs
index ecbfe1cca..d0128336b 100644
--- a/ibc-core/ics24-host/types/src/identifiers/client_id.rs
+++ b/ibc-core/ics24-host/types/src/identifiers/client_id.rs
@@ -66,6 +66,18 @@ impl ClientId {
     pub fn as_bytes(&self) -> &[u8] {
         self.0.as_bytes()
     }
+
+    /// Check if the client identifier is for 08-wasm light client.
+    pub fn is_wasm_client_id(&self) -> bool {
+        const WASM_CLIENT_PREFIX: &str = "08-wasm-";
+
+        // prefixed with wasm client type identifier.
+        self.0.starts_with(WASM_CLIENT_PREFIX)
+            // followed by non-empty string.
+            && self.0.len() > WASM_CLIENT_PREFIX.len()
+            // and the rest of the string is numeric.
+            && self.0.chars().skip(WASM_CLIENT_PREFIX.len()).all(char::is_numeric)
+    }
 }
 
 impl FromStr for ClientId {
@@ -89,3 +101,26 @@ impl PartialEq<str> for ClientId {
         self.as_str().eq(other)
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[rstest::rstest]
+    #[case("08-wasm-1", true)]
+    #[case("08-wasm-", false)]
+    #[case("08-wasm-abc", false)]
+    #[case("08-wasm-1-2", false)]
+    #[case("08-wasm", false)]
+    #[case("wasm", false)]
+    #[case("08-", false)]
+    fn test_is_wasm_client_id(#[case] client_id: &str, #[case] expected: bool) {
+        assert_eq!(
+            matches!(
+                client_id.parse().map(|id: ClientId| id.is_wasm_client_id()),
+                Ok(true)
+            ),
+            expected
+        );
+    }
+}