diff --git a/gnovm/pkg/gnolang/preprocess.go b/gnovm/pkg/gnolang/preprocess.go
index 7387746b3fb..d820aa6c5df 100644
--- a/gnovm/pkg/gnolang/preprocess.go
+++ b/gnovm/pkg/gnolang/preprocess.go
@@ -1297,6 +1297,11 @@ func preprocess1(store Store, ctx BlockNode, n Node) Node {
 					return n, TRANS_CONTINUE
 				case "iota":
 					pd := lastDecl(ns)
+					valueDecl, ok := pd.(*ValueDecl)
+					if !ok || !valueDecl.Const {
+						panic("cannot use iota outside constant declaration")
+					}
+
 					io := pd.GetAttribute(ATTR_IOTA).(int)
 					cx := constUntypedBigint(n, int64(io))
 					return cx, TRANS_CONTINUE
diff --git a/gnovm/tests/files/iota_outside_const.gno b/gnovm/tests/files/iota_outside_const.gno
new file mode 100644
index 00000000000..a86ef5b09c2
--- /dev/null
+++ b/gnovm/tests/files/iota_outside_const.gno
@@ -0,0 +1,17 @@
+package main
+
+const X = iota
+
+func f(x int) {}
+
+func main() {
+	f(X)
+	f(iota) // ERROR "iota"
+	f(X)
+}
+
+// Error:
+// main/iota_outside_const.gno:9:4-8: cannot use iota outside constant declaration
+
+// TypeCheckError:
+// main/iota_outside_const.gno:9:4: cannot use iota outside constant declaration
diff --git a/gnovm/tests/files/iota_outside_const_2.gno b/gnovm/tests/files/iota_outside_const_2.gno
new file mode 100644
index 00000000000..e5ba16620bc
--- /dev/null
+++ b/gnovm/tests/files/iota_outside_const_2.gno
@@ -0,0 +1,18 @@
+package main
+
+const X = iota
+
+func f(x int) {}
+
+func main() {
+	f(X)
+	var a = iota // ERROR "iota"
+	_ = a
+	f(X)
+}
+
+// Error:
+// main/iota_outside_const_2.gno:9:10-14: cannot use iota outside constant declaration
+
+// TypeCheckError:
+// main/iota_outside_const_2.gno:9:10: cannot use iota outside constant declaration