diff --git a/interchaintest/go.mod b/interchaintest/go.mod
index 3fe641520..a302e8f5b 100644
--- a/interchaintest/go.mod
+++ b/interchaintest/go.mod
@@ -16,6 +16,7 @@ require (
 	cosmossdk.io/math v1.3.0
 	github.com/CosmWasm/wasmd v0.45.0
 	github.com/CosmosContracts/juno/v23 v23.0.0-00010101000000-000000000000
+	github.com/cenkalti/backoff v2.2.1+incompatible
 	github.com/cosmos/cosmos-sdk v0.47.12
 	github.com/cosmos/gogoproto v1.4.10
 	github.com/cosmos/ibc-go/v7 v7.6.0
@@ -78,7 +79,7 @@ require (
 	github.com/bgentry/speakeasy v0.1.1-0.20220910012023-760eaf8b6816 // indirect
 	github.com/btcsuite/btcd/btcec/v2 v2.3.2 // indirect
 	github.com/bufbuild/protocompile v0.5.1 // indirect
-	github.com/cenkalti/backoff/v4 v4.2.1 // indirect
+	github.com/cenkalti/backoff/v4 v4.2.1
 	github.com/cespare/xxhash/v2 v2.3.0 // indirect
 	github.com/chzyer/readline v1.5.1 // indirect
 	github.com/cockroachdb/errors v1.11.1 // indirect
diff --git a/interchaintest/helpers/cosmwasm.go b/interchaintest/helpers/cosmwasm.go
index 54d363375..9e1997b6c 100644
--- a/interchaintest/helpers/cosmwasm.go
+++ b/interchaintest/helpers/cosmwasm.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"encoding/json"
 	"testing"
+	"time"
 
 	"github.com/strangelove-ventures/interchaintest/v7/chain/cosmos"
 	"github.com/strangelove-ventures/interchaintest/v7/ibc"
@@ -12,9 +13,17 @@ import (
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
 
+	"github.com/cenkalti/backoff/v4"
 	"github.com/cosmos/cosmos-sdk/crypto/keyring"
 )
 
+var backoffPolicy = &backoff.ExponentialBackOff{
+	MaxElapsedTime:  time.Minute,
+	InitialInterval: 500 * time.Millisecond,
+	Multiplier:      1.5,
+	MaxInterval:     10 * time.Second,
+}
+
 func SmartQueryString(t *testing.T, ctx context.Context, chain *cosmos.CosmosChain, contractAddr, queryMsg string, res interface{}) error {
 	var jsonMap map[string]interface{}
 	if err := json.Unmarshal([]byte(queryMsg), &jsonMap); err != nil {
@@ -24,10 +33,16 @@ func SmartQueryString(t *testing.T, ctx context.Context, chain *cosmos.CosmosCha
 	return err
 }
 
-func StoreContract(t *testing.T, ctx context.Context, chain *cosmos.CosmosChain, keyname string, fileLoc string) (codeId string) {
-	codeId, err := chain.StoreContract(ctx, keyname, fileLoc)
+func StoreContract(t *testing.T, ctx context.Context, chain *cosmos.CosmosChain, keyname, fileLoc string) string {
+	var codeId string
+	err := backoff.Retry(func() error {
+		var err error
+		codeId, err = chain.StoreContract(ctx, keyname, fileLoc)
+		return err
+	}, backoffPolicy)
+
 	if err != nil {
-		t.Fatal(err)
+		t.Fatalf("Failed to store contract: %v", err)
 	}
 	return codeId
 }
diff --git a/interchaintest/setup.go b/interchaintest/setup.go
index 4cf2eb428..904d7816f 100644
--- a/interchaintest/setup.go
+++ b/interchaintest/setup.go
@@ -4,9 +4,11 @@ import (
 	"context"
 	"fmt"
 	"testing"
+	"time"
 
 	sdkmath "cosmossdk.io/math"
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
+	"github.com/cenkalti/backoff"
 	"github.com/docker/docker/client"
 	interchaintest "github.com/strangelove-ventures/interchaintest/v7"
 	"github.com/strangelove-ventures/interchaintest/v7/chain/cosmos"
@@ -26,6 +28,13 @@ import (
 	tokenfactorytypes "github.com/CosmosContracts/juno/v23/x/tokenfactory/types"
 )
 
+var backoffPolicy = &backoff.ExponentialBackOff{
+	MaxElapsedTime:  5 * time.Minute,
+	InitialInterval: 1 * time.Second,
+	Multiplier:      2,
+	MaxInterval:     30 * time.Second,
+}
+
 var (
 	VotingPeriod     = "15s"
 	MaxDepositPeriod = "10s"
@@ -123,22 +132,26 @@ func CreateThisBranchChain(t *testing.T, numVals, numFull int) []ibc.Chain {
 }
 
 func CreateChainWithCustomConfig(t *testing.T, numVals, numFull int, config ibc.ChainConfig) []ibc.Chain {
-	cf := interchaintest.NewBuiltinChainFactory(zaptest.NewLogger(t), []*interchaintest.ChainSpec{
-		{
-			Name:          "juno",
-			ChainName:     "juno",
-			Version:       config.Images[0].Version,
-			ChainConfig:   config,
-			NumValidators: &numVals,
-			NumFullNodes:  &numFull,
-		},
-	})
-
-	// Get chains from the chain factory
-	chains, err := cf.Chains(t.Name())
-	require.NoError(t, err)
-
-	// chain := chains[0].(*cosmos.CosmosChain)
+	var chains []ibc.Chain
+
+	err := backoff.Retry(func() error {
+		cf := interchaintest.NewBuiltinChainFactory(zaptest.NewLogger(t), []*interchaintest.ChainSpec{
+			{
+				Name:          "juno",
+				ChainName:     "juno",
+				Version:       config.Images[0].Version,
+				ChainConfig:   config,
+				NumValidators: &numVals,
+				NumFullNodes:  &numFull,
+			},
+		})
+
+		var err error
+		chains, err = cf.Chains(t.Name())
+		return err
+	}, backoffPolicy)
+
+	require.NoError(t, err, "Failed to create chain after multiple attempts")
 	return chains
 }