diff --git a/abci/abci.go b/abci/abci.go
index fa9e9115..521a1060 100644
--- a/abci/abci.go
+++ b/abci/abci.go
@@ -134,14 +134,14 @@ func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 					sdkTxBytes[index] = txBz
 				}
 
-				if int64(gasLimit) > maxGasLimit {
+				if maxGasLimit > 0 && int64(gasLimit) > maxGasLimit {
 					// The gas limit of the bundled transactions exceeds the maximum gas
 					// limit of the block, so we remove the bid transaction and try the
 					// next top bid.
 					txsToRemove[tmpBidTx] = struct{}{}
 					continue selectBidTxLoop
 				}
-				totalGasLimit += int64(gasLimit)
+				totalGasLimit = int64(gasLimit)
 
 				// At this point, both the bid transaction itself and all the bundled
 				// transactions are valid. So we select the bid transaction along with
@@ -219,7 +219,7 @@ func (h *ProposalHandler) PrepareProposalHandler() sdk.PrepareProposalHandler {
 				continue selectTxLoop
 			}
 			gasLimit := feeTx.GetGas()
-			if totalGasLimit += int64(gasLimit); totalGasLimit > maxGasLimit {
+			if totalGasLimit += int64(gasLimit); maxGasLimit > 0 && totalGasLimit > maxGasLimit {
 				// We've reached capacity per maxGasLimit so we cannot select any more
 				// transactions.
 				break selectTxLoop
diff --git a/abci/abci_test.go b/abci/abci_test.go
index 89f3e622..f0d51dab 100644
--- a/abci/abci_test.go
+++ b/abci/abci_test.go
@@ -892,7 +892,7 @@ func (suite *ABCITestSuite) TestPrepareProposalLimits() {
 	suite.Run("rejects a tx that is too large but accepts a smaller one", func() {
 		suite.SetupTest() // reset
 		gasLimit := uint64(1000)
-		tx1, err := testutils.CreateTxWithLimit(suite.encodingConfig.TxConfig, suite.accounts[0], 0, 1000, testutils.CreateRandomMsgs(suite.accounts[0].Address, 1), gasLimit)
+		tx1, err := testutils.CreateTxWithLimit(suite.encodingConfig.TxConfig, suite.accounts[0], 1, 1000, testutils.CreateRandomMsgs(suite.accounts[0].Address, 1), gasLimit)
 		suite.Require().NoError(err)
 
 		tx2, err := testutils.CreateTxWithLimit(suite.encodingConfig.TxConfig, suite.accounts[0], 0, 1000, testutils.CreateRandomMsgs(suite.accounts[0].Address, 1), gasLimit-1)