diff --git a/tests/e2e/distribution_test.go b/tests/e2e/distribution_test.go
index e3b0c96959..32ccb9824b 100644
--- a/tests/e2e/distribution_test.go
+++ b/tests/e2e/distribution_test.go
@@ -1,3 +1,79 @@
 package e2e_test
 
-// TODO: Add tests for the reward distribution sub protocol
+import (
+	"strings"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	transfertypes "github.com/cosmos/ibc-go/v3/modules/apps/transfer/types"
+	app "github.com/cosmos/interchain-security/app/consumer"
+	providerApp "github.com/cosmos/interchain-security/app/provider"
+	consumerkeeper "github.com/cosmos/interchain-security/x/ccv/consumer/keeper"
+	consumertypes "github.com/cosmos/interchain-security/x/ccv/consumer/types"
+	ccv "github.com/cosmos/interchain-security/x/ccv/types"
+)
+
+//This test is valid for minimal viable consumer chain
+func (s *ProviderTestSuite) TestRewardsDistribution() {
+
+	//set up channel and delegate some tokens in order for validator set update to be sent to the consumer chain
+	s.SetupCCVChannel()
+	bondAmt := sdk.NewInt(10000000)
+	delAddr := s.providerChain.SenderAccount.GetAddress()
+	delegate(s, delAddr, bondAmt)
+	s.providerChain.NextBlock()
+
+	// relay VSC packets from provider to consumer
+	relayAllCommittedPackets(s, s.providerChain, s.path, ccv.ProviderPortID, s.path.EndpointB.ChannelID, 1)
+
+	//reward for the provider chain will be sent after each 2 blocks
+	consumerParams := s.consumerChain.App.(*app.App).GetSubspace(consumertypes.ModuleName)
+	consumerParams.Set(s.consumerCtx(), consumertypes.KeyBlocksPerDistributionTransmission, int64(2))
+	s.consumerChain.NextBlock()
+
+	consumerAccountKeeper := s.consumerChain.App.(*app.App).AccountKeeper
+	consumerBankKeeper := s.consumerChain.App.(*app.App).BankKeeper
+
+	//send coins to the fee pool which is used for reward distribution
+	consumerFeePoolAddr := consumerAccountKeeper.GetModuleAccount(s.consumerCtx(), authtypes.FeeCollectorName).GetAddress()
+	feePoolTokensOld := consumerBankKeeper.GetAllBalances(s.consumerCtx(), consumerFeePoolAddr)
+	fees := sdk.NewCoins(sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(100)))
+	err := consumerBankKeeper.SendCoinsFromAccountToModule(s.consumerCtx(), s.consumerChain.SenderAccount.GetAddress(), authtypes.FeeCollectorName, fees)
+	s.Require().NoError(err)
+	feePoolTokens := consumerBankKeeper.GetAllBalances(s.consumerCtx(), consumerFeePoolAddr)
+	s.Require().Equal(sdk.NewInt(100).Add(feePoolTokensOld.AmountOf(sdk.DefaultBondDenom)), feePoolTokens.AmountOf(sdk.DefaultBondDenom))
+
+	//calculate the reward for consumer and provider chain. Consumer will receive ConsumerRedistributeFrac, the rest is going to provider
+	frac, err := sdk.NewDecFromStr(consumerkeeper.ConsumerRedistributeFrac)
+	s.Require().NoError(err)
+	consumerExpectedRewards, _ := sdk.NewDecCoinsFromCoins(feePoolTokens...).MulDec(frac).TruncateDecimal()
+	providerExpectedRewards := feePoolTokens.Sub(consumerExpectedRewards)
+	s.consumerChain.NextBlock()
+
+	//amount from the fee pool is devided between consumer redistribute address and address reserved for provider chain
+	feePoolTokens = consumerBankKeeper.GetAllBalances(s.consumerCtx(), consumerFeePoolAddr)
+	s.Require().Equal(0, len(feePoolTokens))
+	consumerRedistributeAddr := consumerAccountKeeper.GetModuleAccount(s.consumerCtx(), consumertypes.ConsumerRedistributeName).GetAddress()
+	consumerTokens := consumerBankKeeper.GetAllBalances(s.consumerCtx(), consumerRedistributeAddr)
+	s.Require().Equal(consumerExpectedRewards.AmountOf(sdk.DefaultBondDenom), consumerTokens.AmountOf(sdk.DefaultBondDenom))
+	providerRedistributeAddr := consumerAccountKeeper.GetModuleAccount(s.consumerCtx(), consumertypes.ConsumerToSendToProviderName).GetAddress()
+	providerTokens := consumerBankKeeper.GetAllBalances(s.consumerCtx(), providerRedistributeAddr)
+	s.Require().Equal(providerExpectedRewards.AmountOf(sdk.DefaultBondDenom), providerTokens.AmountOf(sdk.DefaultBondDenom))
+
+	//send the reward to provider chain after 2 blocks
+	s.consumerChain.NextBlock()
+	providerTokens = consumerBankKeeper.GetAllBalances(s.consumerCtx(), providerRedistributeAddr)
+	s.Require().Equal(0, len(providerTokens))
+
+	relayAllCommittedPackets(s, s.consumerChain, s.transferPath, transfertypes.PortID, s.transferPath.EndpointA.ChannelID, 1)
+	s.providerChain.NextBlock()
+	communityCoins := s.providerChain.App.(*providerApp.App).DistrKeeper.GetFeePoolCommunityCoins(s.providerCtx())
+	ibcCoinIndex := -1
+	for i, coin := range communityCoins {
+		if strings.HasPrefix(coin.Denom, "ibc") {
+			ibcCoinIndex = i
+		}
+	}
+	s.Require().Greater(ibcCoinIndex, -1)
+	s.Require().True(communityCoins[ibcCoinIndex].Amount.Equal(sdk.NewDecCoinFromCoin(providerExpectedRewards[0]).Amount))
+}
diff --git a/x/ccv/consumer/keeper/distribution.go b/x/ccv/consumer/keeper/distribution.go
index 2f75f03c47..1e17ed178d 100644
--- a/x/ccv/consumer/keeper/distribution.go
+++ b/x/ccv/consumer/keeper/distribution.go
@@ -29,13 +29,6 @@ func (k Keeper) DistributeToProviderValidatorSet(ctx sdk.Context) error {
 	if err != nil {
 		return err
 	}
-	bpdt := k.GetBlocksPerDistributionTransmission(ctx)
-	curHeight := ctx.BlockHeight()
-
-	if (curHeight - ltbh.Height) < bpdt {
-		// not enough blocks have passed for  a transmission to occur
-		return nil
-	}
 
 	consumerFeePoolAddr := k.authKeeper.GetModuleAccount(ctx, k.feeCollectorName).GetAddress()
 	fpTokens := k.bankKeeper.GetAllBalances(ctx, consumerFeePoolAddr)
@@ -66,6 +59,14 @@ func (k Keeper) DistributeToProviderValidatorSet(ctx sdk.Context) error {
 		return err
 	}
 
+	bpdt := k.GetBlocksPerDistributionTransmission(ctx)
+	curHeight := ctx.BlockHeight()
+
+	if (curHeight - ltbh.Height) < bpdt {
+		// not enough blocks have passed for  a transmission to occur
+		return nil
+	}
+
 	// empty out the toSendToProviderTokens address
 	ch := k.GetDistributionTransmissionChannel(ctx)
 	transferChannel, found := k.channelKeeper.GetChannel(ctx, transfertypes.PortID, ch)