diff --git a/multichain-testing/config.yaml b/multichain-testing/config.yaml
index e73005c4cb7..5fce1d31e7f 100644
--- a/multichain-testing/config.yaml
+++ b/multichain-testing/config.yaml
@@ -118,9 +118,6 @@ relayers:
     chains:
       - osmosislocal
       - cosmoshublocal
-    config:
-      global:
-        log_level: 'debug'
   - name: agoric-osmosis
     type: hermes
     image: ghcr.io/cosmology-tech/starship/hermes:1.10.5
@@ -128,9 +125,6 @@ relayers:
     chains:
       - agoriclocal
       - osmosislocal
-    config:
-      global:
-        log_level: 'debug'
   - name: agoric-cosmoshub
     type: hermes
     image: ghcr.io/cosmology-tech/starship/hermes:1.10.5
@@ -138,9 +132,6 @@ relayers:
     chains:
       - agoriclocal
       - cosmoshublocal
-    config:
-      global:
-        log_level: 'debug'
 
 explorer:
   enabled: true
diff --git a/multichain-testing/test/ibc-transfers.ts b/multichain-testing/test/ibc-transfers.ts
index a1530be4c33..77400556d82 100644
--- a/multichain-testing/test/ibc-transfers.ts
+++ b/multichain-testing/test/ibc-transfers.ts
@@ -4,9 +4,11 @@ import type { TestFn, ExecutionContext } from 'ava';
 import { commonSetup, type SetupContext } from './support.js';
 import { createWallet, generateMnemonic } from '../tools/wallet.js';
 import { makeQueryClient } from '../tools/query.js';
-import { makeAgd } from '../tools/agd-lib.js';
+import { makeAgd, type Agd } from '../tools/agd-lib.js';
 import starshipChainInfo from '../starship-chain-info.js';
 import type { ForwardInfo } from '@agoric/orchestration';
+import { sleep } from '../tools/sleep.js';
+import { objectMap } from '@endo/patterns';
 
 const test = anyTest as TestFn<SetupContext>;
 
@@ -14,6 +16,23 @@ test.before(async t => {
   t.context = await commonSetup(t);
 });
 
+const queryStrings = {
+  msgReceivePacket: {
+    agoric: ['--events', 'message.action=/ibc.core.channel.v1.MsgRecvPacket'],
+    cosmos: ['--query', "message.action='/ibc.core.channel.v1.MsgRecvPacket'"],
+  },
+  msgAcknowledgement: {
+    agoric: [
+      '--events',
+      'message.action=/ibc.core.channel.v1.MsgAcknowledgement',
+    ],
+    cosmos: [
+      '--query',
+      "message.action='/ibc.core.channel.v1.MsgAcknowledgement'",
+    ],
+  },
+};
+
 // use this on osmosis, cosmoshub as our account name in the keyring
 const keyName = 'testuser';
 
@@ -112,15 +131,80 @@ const setupSourceWallet = async (
   };
 };
 
-test('pfm: osmosis -> agoric -> gaia', async t => {
-  const { retryUntilCondition, useChain } = t.context;
+type QueryRes = { total_count: string; txs: object[] };
+const queryPackets = async (binaries: Record<string, Agd>) => {
+  const results: Record<string, { recvs: QueryRes; acks: QueryRes }> = {};
+  for (const [name, chaind] of Object.entries(binaries)) {
+    // perhaps the different is pre/post v0.50 queries?
+    const queryType = name === 'agd' ? 'agoric' : 'cosmos';
+    const recvs = await chaind.query([
+      'txs',
+      ...queryStrings.msgReceivePacket[queryType],
+    ]);
+    const acks = await chaind.query([
+      'txs',
+      ...queryStrings.msgAcknowledgement[queryType],
+    ]);
+    results[name] = {
+      recvs,
+      acks,
+    };
+  }
+  return results;
+};
 
+type ChainPacketCounts = Record<
+  string,
+  {
+    recvs: number;
+    acks: number;
+  }
+>;
+
+const recordPackets = async (
+  binaries: Record<string, Agd>,
+  iteration: `q${number}`,
+): Promise<ChainPacketCounts> => {
+  const q = await queryPackets(binaries);
+  const counts = objectMap(q, val => ({
+    recvs: Number(val.recvs.total_count),
+    acks: Number(val.acks.total_count),
+  }));
+  console.log(`${iteration} counts`, counts);
+  return counts;
+};
+
+const diffPacketCounts = (
+  current: ChainPacketCounts,
+  previous: ChainPacketCounts,
+): ChainPacketCounts => {
+  return objectMap(current, (val, key) => ({
+    recvs: val.recvs - previous[key].recvs,
+    acks: val.acks - previous[key].acks,
+  }));
+};
+
+test('pfm: osmosis -> agoric -> cosmoshub', async t => {
+  const { agd, retryUntilCondition, useChain } = t.context;
   const { acctAddr: osmosisAddr, chaind: osmosisd } = await setupSourceWallet(
     t,
     {
       chainName: 'osmosis',
     },
   );
+
+  const gaiad = makeAgd({ execFileSync }).withOpts({
+    chainName: 'cosmoshub',
+  });
+  const binaries = {
+    osmosisd,
+    agd,
+    gaiad,
+  };
+
+  await sleep(10_000); // wait for acks
+  const q0 = await recordPackets(binaries, 'q0');
+
   const { denom: denomOnOsmosis } = await fundRemote(t, {
     acctAddr: osmosisAddr,
     destChainName: 'osmosis',
@@ -129,6 +213,19 @@ test('pfm: osmosis -> agoric -> gaia', async t => {
     denom: 'ubld',
   });
 
+  await sleep(10_000); // wait for acks
+  const q1 = await recordPackets(binaries, 'q1');
+  const p1Diff = diffPacketCounts(q1, q0);
+  t.like(
+    p1Diff,
+    {
+      osmosisd: { recvs: 1, acks: 0 },
+      agd: { recvs: 0, acks: 1 },
+      gaiad: { recvs: 0, acks: 0 },
+    },
+    'Initial transfer packet counts incorrect',
+  );
+
   const cosmosChainId = useChain('cosmoshub').chain.chain_id;
   const agoricChainId = useChain('agoric').chain.chain_id;
   const osmosisChainId = useChain('osmosis').chain.chain_id;
@@ -151,6 +248,10 @@ test('pfm: osmosis -> agoric -> gaia', async t => {
     },
   };
 
+  // intermediary receiver for PFM transfer
+  const agoricAddr = (await (await createWallet('agoric')).getAccounts())[0]
+    .address;
+
   // agd tx ibc-transfer transfer [src-port] [src-channel] [receiver] [amount] [flags]
   const pfmThroughAgoric = await osmosisd.tx(
     [
@@ -158,10 +259,10 @@ test('pfm: osmosis -> agoric -> gaia', async t => {
       'transfer',
       'transfer',
       osmosisToAgoric.channelId,
-      'agoric1ujmk0492mauq2f2vrcn7ylq3w3x55k0ap9mt2p', // consider using an agoric intermediary address
+      agoricAddr,
       `50${denomOnOsmosis}`,
       '--memo',
-      `'${JSON.stringify(forwardInfo)}'`,
+      `${JSON.stringify(forwardInfo)}`,
       // consider --packet-timeout-timestamp. default is 10mins
     ],
     {
@@ -177,11 +278,28 @@ test('pfm: osmosis -> agoric -> gaia', async t => {
   const cosmosQueryClient = makeQueryClient(
     await useChain('cosmoshub').getRestEndpoint(),
   );
+
+  // TODO, wait until these events are observed instead of sleeping
+  await sleep(18_000); // wait for acks
+  const q2 = await recordPackets(binaries, 'q2');
+
+  const p2Diff = diffPacketCounts(q2, q1);
+  t.deepEqual(
+    p2Diff,
+    {
+      osmosisd: { recvs: 0, acks: 1 }, // Should receive ack from Agoric
+      agd: { recvs: 1, acks: 1 }, // Receives from Osmosis, gets ack from Cosmos
+      gaiad: { recvs: 1, acks: 0 }, // Receives forwarded packet
+    },
+    'PFM transfer packet counts incorrect',
+  );
+
   const { balances: cosmosBalances } = await retryUntilCondition(
     () => cosmosQueryClient.queryBalances(cosmosAddr),
     ({ balances }) => !!balances.length,
     `${cosmosAddr} received bld from osmosis`,
   );
   t.log('cosmosBalances', cosmosBalances);
-  // osmosisd.keys.delete(keyName);
+
+  osmosisd.keys.delete(keyName);
 });
diff --git a/multichain-testing/tools/agd-lib.js b/multichain-testing/tools/agd-lib.js
index 54b51bf7c5d..190e701019f 100644
--- a/multichain-testing/tools/agd-lib.js
+++ b/multichain-testing/tools/agd-lib.js
@@ -96,10 +96,13 @@ export const makeAgd = ({ execFileSync }) => {
        * @param {| [kind: 'gov', domain: string, ...rest: any]
        *         | [kind: 'tx', txhash: string]
        *         | [mod: 'vstorage', kind: 'data' | 'children', path: string]
+       *         | [kind: 'txs', ...rest: any]
        * } qArgs
        */
       query: async qArgs => {
-        const out = exec(['query', ...qArgs, ...nodeArgs, ...outJson], {
+        const args = ['query', ...qArgs, ...nodeArgs, ...outJson];
+        console.log(`$$$ ${chainToBinary[chainName]}`, ...args);
+        const out = exec(args, {
           encoding: 'utf-8',
           stdio: ['ignore', 'pipe', 'ignore'],
         });