diff --git a/relayer/channel-tx.go b/relayer/channel-tx.go
index c6eb166f0..f053e4315 100644
--- a/relayer/channel-tx.go
+++ b/relayer/channel-tx.go
@@ -103,7 +103,6 @@ func ExecuteChannelStep(src, dst *Chain) (success, last, modified bool, err erro
 	// if either identifier is missing, an existing channel that matches the required fields
 	// is chosen or a new channel is created.
 	if src.PathEnd.ChannelID == "" || dst.PathEnd.ChannelID == "" {
-		// TODO: Query for existing identifier and fill config, if possible
 		success, modified, err := InitializeChannel(src, dst, srcUpdateHeader, dstUpdateHeader, sh)
 		if err != nil {
 			return false, false, false, err
@@ -221,6 +220,9 @@ func ExecuteChannelStep(src, dst *Chain) (success, last, modified bool, err erro
 			return false, false, false, err
 		}
 
+	case srcChan.Channel.State == chantypes.OPEN && dstChan.Channel.State == chantypes.OPEN:
+		last = true
+
 	}
 
 	return true, last, false, nil
@@ -240,22 +242,25 @@ func InitializeChannel(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmclie
 			// TODO: log that we are attempting to create new channel ends
 		}
 
-		// cosntruct OpenInit message to be submitted on source chain
-		msgs := []sdk.Msg{
-			src.UpdateClient(dstUpdateHeader),
-			src.ChanInit(dst.PathEnd),
-		}
+		channelID, found := FindMatchingChannel(src, dst)
+		if !found {
+			// construct OpenInit message to be submitted on source chain
+			msgs := []sdk.Msg{
+				src.UpdateClient(dstUpdateHeader),
+				src.ChanInit(dst.PathEnd),
+			}
 
-		res, success, err := src.SendMsgs(msgs)
-		if !success {
-			return false, false, err
-		}
+			res, success, err := src.SendMsgs(msgs)
+			if !success {
+				return false, false, err
+			}
 
-		// update channel identifier in PathEnd
-		// use index 1, channel open init is the second message in the transaction
-		channelID, err := ParseChannelIDFromEvents(res.Logs[1].Events)
-		if err != nil {
-			return false, false, err
+			// update channel identifier in PathEnd
+			// use index 1, channel open init is the second message in the transaction
+			channelID, err = ParseChannelIDFromEvents(res.Logs[1].Events)
+			if err != nil {
+				return false, false, err
+			}
 		}
 		src.PathEnd.ChannelID = channelID
 
@@ -268,26 +273,29 @@ func InitializeChannel(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmclie
 			// TODO: update logging
 		}
 
-		// open try on source chain
-		openTry, err := src.ChanTry(dst, dstUpdateHeader.GetHeight().GetRevisionHeight()-1)
-		if err != nil {
-			return false, false, err
-		}
+		channelID, found := FindMatchingChannel(src, dst)
+		if !found {
+			// open try on source chain
+			openTry, err := src.ChanTry(dst, dstUpdateHeader.GetHeight().GetRevisionHeight()-1)
+			if err != nil {
+				return false, false, err
+			}
 
-		msgs := []sdk.Msg{
-			src.UpdateClient(dstUpdateHeader),
-			openTry,
-		}
-		res, success, err := src.SendMsgs(msgs)
-		if !success {
-			return false, false, err
-		}
+			msgs := []sdk.Msg{
+				src.UpdateClient(dstUpdateHeader),
+				openTry,
+			}
+			res, success, err := src.SendMsgs(msgs)
+			if !success {
+				return false, false, err
+			}
 
-		// update channel identifier in PathEnd
-		// use index 1, channel open try is the second message in the transaction
-		channelID, err := ParseChannelIDFromEvents(res.Logs[1].Events)
-		if err != nil {
-			return false, false, err
+			// update channel identifier in PathEnd
+			// use index 1, channel open try is the second message in the transaction
+			channelID, err = ParseChannelIDFromEvents(res.Logs[1].Events)
+			if err != nil {
+				return false, false, err
+			}
 		}
 		src.PathEnd.ChannelID = channelID
 
@@ -300,26 +308,29 @@ func InitializeChannel(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmclie
 			// TODO: update logging
 		}
 
-		// open try on destination chain
-		openTry, err := dst.ChanTry(src, srcUpdateHeader.GetHeight().GetRevisionHeight()-1)
-		if err != nil {
-			return false, false, err
-		}
+		channelID, found := FindMatchingChannel(dst, src)
+		if !found {
+			// open try on destination chain
+			openTry, err := dst.ChanTry(src, srcUpdateHeader.GetHeight().GetRevisionHeight()-1)
+			if err != nil {
+				return false, false, err
+			}
 
-		msgs := []sdk.Msg{
-			dst.UpdateClient(srcUpdateHeader),
-			openTry,
-		}
-		res, success, err := dst.SendMsgs(msgs)
-		if !success {
-			return false, false, err
-		}
+			msgs := []sdk.Msg{
+				dst.UpdateClient(srcUpdateHeader),
+				openTry,
+			}
+			res, success, err := dst.SendMsgs(msgs)
+			if !success {
+				return false, false, err
+			}
 
-		// update channel identifier in PathEnd
-		// use index 1, channel open try is the second message in the transaction
-		channelID, err := ParseChannelIDFromEvents(res.Logs[1].Events)
-		if err != nil {
-			return false, false, err
+			// update channel identifier in PathEnd
+			// use index 1, channel open try is the second message in the transaction
+			channelID, err = ParseChannelIDFromEvents(res.Logs[1].Events)
+			if err != nil {
+				return false, false, err
+			}
 		}
 		dst.PathEnd.ChannelID = channelID
 
@@ -453,3 +464,46 @@ func (c *Chain) CloseChannelStep(dst *Chain) (*RelayMsgs, error) {
 	}
 	return out, nil
 }
+
+// FindMatchingChannel will determine if there already exists a channel between source and counterparty
+// that matches the parameters set in the relayer config.
+func FindMatchingChannel(source, counterparty *Chain) (string, bool) {
+	// TODO: add appropriate offset and limits, along with retries
+	channelsResp, err := source.QueryChannels(0, 1000)
+	if err != nil {
+		if source.debug {
+			source.Log(fmt.Sprintf("Error: querying channels on %s failed: %v", source.PathEnd.ChainID, err))
+		}
+		return "", false
+	}
+
+	for _, channel := range channelsResp.Channels {
+		if IsMatchingChannel(source, counterparty, channel) {
+			// unused channel found
+			return channel.ChannelId, true
+		}
+	}
+
+	return "", false
+}
+
+// IsMatchingChannel determines if given channel matches required conditions
+func IsMatchingChannel(source, counterparty *Chain, channel *chantypes.IdentifiedChannel) bool {
+	return channel.Ordering == source.PathEnd.GetOrder() &&
+		IsConnectionFound(channel.ConnectionHops, source.PathEnd.ConnectionID) &&
+		channel.Version == source.PathEnd.Version &&
+		channel.PortId == source.PathEnd.PortID && channel.Counterparty.PortId == counterparty.PathEnd.PortID &&
+		(((channel.State == chantypes.INIT || channel.State == chantypes.TRYOPEN) && channel.Counterparty.ChannelId == "") ||
+			(channel.State == chantypes.OPEN && (counterparty.PathEnd.ChannelID == "" ||
+				channel.Counterparty.ChannelId == counterparty.PathEnd.ChannelID)))
+}
+
+// IsConnectionFound determines if given connectionId is present in channel connectionHops list
+func IsConnectionFound(connectionHops []string, connectionID string) bool {
+	for _, id := range connectionHops {
+		if id == connectionID {
+			return true
+		}
+	}
+	return false
+}
diff --git a/relayer/connection-tx.go b/relayer/connection-tx.go
index cef0176da..c5b6a4d43 100644
--- a/relayer/connection-tx.go
+++ b/relayer/connection-tx.go
@@ -104,7 +104,6 @@ func ExecuteConnectionStep(src, dst *Chain) (success, last, modified bool, err e
 	// is chosen or a new connection is created.
 	// This will perform either an OpenInit or OpenTry step and return
 	if src.PathEnd.ConnectionID == "" || dst.PathEnd.ConnectionID == "" {
-		// TODO: Query for existing identifier and fill config, if possible
 		success, modified, err := InitializeConnection(src, dst, srcUpdateHeader, dstUpdateHeader, sh)
 		if err != nil {
 			return false, false, false, err
@@ -218,6 +217,9 @@ func ExecuteConnectionStep(src, dst *Chain) (success, last, modified bool, err e
 			return false, false, false, err
 		}
 
+	case srcConn.Connection.State == conntypes.OPEN && dstConn.Connection.State == conntypes.OPEN:
+		last = true
+
 	}
 
 	return true, last, false, nil
@@ -237,22 +239,25 @@ func InitializeConnection(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmc
 			// TODO: log that we are attempting to create new connection ends
 		}
 
-		// cosntruct OpenInit message to be submitted on source chain
-		msgs := []sdk.Msg{
-			src.UpdateClient(dstUpdateHeader),
-			src.ConnInit(dst.PathEnd),
-		}
+		connectionID, found := FindMatchingConnection(src, dst)
+		if !found {
+			// construct OpenInit message to be submitted on source chain
+			msgs := []sdk.Msg{
+				src.UpdateClient(dstUpdateHeader),
+				src.ConnInit(dst.PathEnd),
+			}
 
-		res, success, err := src.SendMsgs(msgs)
-		if !success {
-			return false, false, err
-		}
+			res, success, err := src.SendMsgs(msgs)
+			if !success {
+				return false, false, err
+			}
 
-		// update connection identifier in PathEnd
-		// use index 1, connection open init is the second message in the transaction
-		connectionID, err := ParseConnectionIDFromEvents(res.Logs[1].Events)
-		if err != nil {
-			return false, false, err
+			// update connection identifier in PathEnd
+			// use index 1, connection open init is the second message in the transaction
+			connectionID, err = ParseConnectionIDFromEvents(res.Logs[1].Events)
+			if err != nil {
+				return false, false, err
+			}
 		}
 		src.PathEnd.ConnectionID = connectionID
 
@@ -265,25 +270,28 @@ func InitializeConnection(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmc
 			// TODO: update logging
 		}
 
-		openTry, err := src.ConnTry(dst, dstUpdateHeader.GetHeight().GetRevisionHeight()-1)
-		if err != nil {
-			return false, false, err
-		}
+		connectionID, found := FindMatchingConnection(src, dst)
+		if !found {
+			openTry, err := src.ConnTry(dst, dstUpdateHeader.GetHeight().GetRevisionHeight()-1)
+			if err != nil {
+				return false, false, err
+			}
 
-		msgs := []sdk.Msg{
-			src.UpdateClient(dstUpdateHeader),
-			openTry,
-		}
-		res, success, err := src.SendMsgs(msgs)
-		if !success {
-			return false, false, err
-		}
+			msgs := []sdk.Msg{
+				src.UpdateClient(dstUpdateHeader),
+				openTry,
+			}
+			res, success, err := src.SendMsgs(msgs)
+			if !success {
+				return false, false, err
+			}
 
-		// update connection identifier in PathEnd
-		// use index 1, connection open try is the second message in the transaction
-		connectionID, err := ParseConnectionIDFromEvents(res.Logs[1].Events)
-		if err != nil {
-			return false, false, err
+			// update connection identifier in PathEnd
+			// use index 1, connection open try is the second message in the transaction
+			connectionID, err = ParseConnectionIDFromEvents(res.Logs[1].Events)
+			if err != nil {
+				return false, false, err
+			}
 		}
 		src.PathEnd.ConnectionID = connectionID
 
@@ -296,25 +304,28 @@ func InitializeConnection(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmc
 			// TODO: update logging
 		}
 
-		openTry, err := dst.ConnTry(src, srcUpdateHeader.GetHeight().GetRevisionHeight()-1)
-		if err != nil {
-			return false, false, err
-		}
+		connectionID, found := FindMatchingConnection(dst, src)
+		if !found {
+			openTry, err := dst.ConnTry(src, srcUpdateHeader.GetHeight().GetRevisionHeight()-1)
+			if err != nil {
+				return false, false, err
+			}
 
-		msgs := []sdk.Msg{
-			dst.UpdateClient(srcUpdateHeader),
-			openTry,
-		}
-		res, success, err := dst.SendMsgs(msgs)
-		if !success {
-			return false, false, err
-		}
+			msgs := []sdk.Msg{
+				dst.UpdateClient(srcUpdateHeader),
+				openTry,
+			}
+			res, success, err := dst.SendMsgs(msgs)
+			if !success {
+				return false, false, err
+			}
 
-		// update connection identifier in PathEnd
-		// use index 1, connection open try is the second message in the transaction
-		connectionID, err := ParseConnectionIDFromEvents(res.Logs[1].Events)
-		if err != nil {
-			return false, false, err
+			// update connection identifier in PathEnd
+			// use index 1, connection open try is the second message in the transaction
+			connectionID, err = ParseConnectionIDFromEvents(res.Logs[1].Events)
+			if err != nil {
+				return false, false, err
+			}
 		}
 		dst.PathEnd.ConnectionID = connectionID
 
@@ -324,3 +335,38 @@ func InitializeConnection(src, dst *Chain, srcUpdateHeader, dstUpdateHeader *tmc
 		return false, true, fmt.Errorf("connection ends already created")
 	}
 }
+
+// FindMatchingConnection will determine if there already exists a connection between source and counterparty
+// that matches the parameters set in the relayer config.
+func FindMatchingConnection(source, counterparty *Chain) (string, bool) {
+	// TODO: add appropriate offset and limits, along with retries
+	connectionsResp, err := source.QueryConnections(0, 1000)
+	if err != nil {
+		if source.debug {
+			source.Log(fmt.Sprintf("Error: querying connections on %s failed: %v", source.PathEnd.ChainID, err))
+		}
+		return "", false
+	}
+
+	for _, connection := range connectionsResp.Connections {
+		if IsMatchingConnection(source, counterparty, connection) {
+			// unused connection found
+			return connection.Id, true
+		}
+	}
+
+	return "", false
+}
+
+// IsMatchingConnection determines if given connection matches required conditions
+func IsMatchingConnection(source, counterparty *Chain, connection *conntypes.IdentifiedConnection) bool {
+	// determines version we use is matching with given versions
+	_, isVersionMatched := conntypes.FindSupportedVersion(conntypes.DefaultIBCVersion, conntypes.ProtoVersionsToExported(connection.Versions))
+	return connection.ClientId == source.PathEnd.ClientID &&
+		connection.Counterparty.ClientId == counterparty.PathEnd.ClientID &&
+		isVersionMatched && connection.DelayPeriod == defaultDelayPeriod &&
+		connection.Counterparty.Prefix.String() == defaultChainPrefix.String() &&
+		(((connection.State == conntypes.INIT || connection.State == conntypes.TRYOPEN) && connection.Counterparty.ConnectionId == "") ||
+			(connection.State == conntypes.OPEN && (counterparty.PathEnd.ConnectionID == "" ||
+				connection.Counterparty.ConnectionId == counterparty.PathEnd.ConnectionID)))
+}
diff --git a/test/relayer_gaia_test.go b/test/relayer_gaia_test.go
index b6a608e55..444fd9e70 100644
--- a/test/relayer_gaia_test.go
+++ b/test/relayer_gaia_test.go
@@ -97,3 +97,54 @@ func TestGaiaToGaiaStreamingRelayer(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, dstExpected.AmountOf(testDenom).Int64()-4000, dstGot.AmountOf(testDenom).Int64())
 }
+
+func TestGaiaReuseIdentifiers(t *testing.T) {
+	chains := spinUpTestChains(t, gaiaChains...)
+
+	var (
+		src = chains.MustGet("ibc-0")
+		dst = chains.MustGet("ibc-1")
+	)
+
+	_, err := genTestPathAndSet(src, dst, "transfer", "transfer")
+	require.NoError(t, err)
+
+	// create path
+	_, err = src.CreateClients(dst)
+	require.NoError(t, err)
+	testClientPair(t, src, dst)
+
+	_, err = src.CreateOpenConnections(dst, 3, src.GetTimeout())
+	require.NoError(t, err)
+	testConnectionPair(t, src, dst)
+
+	_, err = src.CreateOpenChannels(dst, 3, src.GetTimeout())
+	require.NoError(t, err)
+	testChannelPair(t, src, dst)
+
+	expectedSrc := src
+	expectedDst := dst
+
+	// clear old config
+	src.PathEnd.ClientID = ""
+	src.PathEnd.ConnectionID = ""
+	src.PathEnd.ChannelID = ""
+	dst.PathEnd.ClientID = ""
+	dst.PathEnd.ConnectionID = ""
+	dst.PathEnd.ChannelID = ""
+
+	_, err = src.CreateClients(dst)
+	require.NoError(t, err)
+	testClientPair(t, src, dst)
+
+	_, err = src.CreateOpenConnections(dst, 3, src.GetTimeout())
+	require.NoError(t, err)
+	testConnectionPair(t, src, dst)
+
+	_, err = src.CreateOpenChannels(dst, 3, src.GetTimeout())
+	require.NoError(t, err)
+	testChannelPair(t, src, dst)
+
+	require.Equal(t, expectedSrc, src)
+	require.Equal(t, expectedDst, dst)
+}