diff --git a/Documentation/CHANGELOG.md b/Documentation/CHANGELOG.md
index 38cc9eab2..8d09cc628 100644
--- a/Documentation/CHANGELOG.md
+++ b/Documentation/CHANGELOG.md
@@ -19,6 +19,7 @@ Release Date: TBD
 ### Minor Changes
 
 - Adds option `sim_common_Rrisky` to control whether risky-asset models draw common or idiosyncratic returns in simulation. [#1250](https://github.com/econ-ark/HARK/pull/1250),[#1253](https://github.com/econ-ark/HARK/pull/1253)
+- Fixes bug in the metric that compares dictionaries with the same keys. [#1260](https://github.com/econ-ark/HARK/pull/1260)
 
 ### 0.13.0
 
diff --git a/HARK/metric.py b/HARK/metric.py
index d1151058e..3c434d782 100644
--- a/HARK/metric.py
+++ b/HARK/metric.py
@@ -29,7 +29,7 @@ def distance_dicts(dict_a, dict_b):
     len_b = len(dict_b)
 
     if len_a == len_b:
-        if set(dict_a.keys()) == set(dict_b.keys()):
+        if set(dict_a.keys()) != set(dict_b.keys()):
             warn("Dictionaries with keys that do not match are being compared.")
             return 1000.0
         return np.max(
diff --git a/HARK/tests/test_core.py b/HARK/tests/test_core.py
index 76fed5d12..6b61a80f8 100644
--- a/HARK/tests/test_core.py
+++ b/HARK/tests/test_core.py
@@ -22,6 +22,9 @@ def setUp(self):
         self.obj_a = MetricObject()
         self.obj_b = MetricObject()
         self.obj_c = MetricObject()
+        self.dict_a = {"a": 1, "b": 2}
+        self.dict_b = {"a": 3, "b": 4}
+        self.dict_c = {"a": 5, "f": 6}
 
     def test_list(self):
         # same length
@@ -46,6 +49,12 @@ def test_array(self):
             distance_metric(np.array(self.list_b), np.array(self.list_b)), 0.0
         )
 
+    def test_dict(self):
+        # Same keys (max of diffs across keys)
+        self.assertEqual(distance_metric(self.dict_a, self.dict_b), 2.0)
+        # Different keys
+        self.assertEqual(distance_metric(self.dict_a, self.dict_c), 1000.0)
+
     def test_hark_object_distance(self):
         self.obj_a.distance_criteria = ["var_1", "var_2", "var_3"]
         self.obj_b.distance_criteria = ["var_1", "var_2", "var_3"]