diff --git a/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java b/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java
index 018b85228ac..dca3245af04 100644
--- a/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java
+++ b/core/src/main/java/com/google/errorprone/bugpatterns/UnusedVariable.java
@@ -35,6 +35,8 @@
 import static com.google.errorprone.util.ASTHelpers.isAbstract;
 import static com.google.errorprone.util.ASTHelpers.isStatic;
 import static com.google.errorprone.util.ASTHelpers.isSubtype;
+import static com.google.errorprone.util.AnnotationNames.AFTER_TEMPLATE_ANNOTATION;
+import static com.google.errorprone.util.AnnotationNames.BEFORE_TEMPLATE_ANNOTATION;
 import static com.google.errorprone.util.SideEffectAnalysis.hasSideEffect;
 import static com.sun.source.tree.Tree.Kind.POSTFIX_DECREMENT;
 import static com.sun.source.tree.Tree.Kind.POSTFIX_INCREMENT;
@@ -139,8 +141,8 @@ public final class UnusedVariable extends BugChecker implements CompilationUnitT
           .addAll(InjectMatchers.PROVIDES_ANNOTATIONS)
           .addAll(InjectMatchers.MULTIBINDINGS_ANNOTATIONS)
           .add(
-              "com.google.errorprone.refaster.annotation.AfterTemplate",
-              "com.google.errorprone.refaster.annotation.BeforeTemplate",
+              AFTER_TEMPLATE_ANNOTATION,
+              BEFORE_TEMPLATE_ANNOTATION,
               // Parameters on test methods imply the test is parameterised, and those parameters
               // should be used or removed.
               "org.junit.Test")
@@ -711,10 +713,16 @@ && exemptedFieldBySuperType(getType(variableTree), state)) {
           }
         }
         case LOCAL_VARIABLE -> {
+          if (isInsideRefasterTemplate(getCurrentPath())) {
+            return;
+          }
           unusedElements.put(symbol, getCurrentPath());
           usageSites.put(symbol, getCurrentPath());
         }
         case BINDING_VARIABLE -> {
+          if (isInsideRefasterTemplate(getCurrentPath())) {
+            return;
+          }
           if (parent instanceof BindingPatternTree
               && getCurrentPath().getParentPath().getParentPath().getLeaf()
                   instanceof InstanceOfTree) {
@@ -743,6 +751,18 @@ && getCurrentPath().getParentPath().getParentPath().getLeaf()
       }
     }
 
+    private boolean isInsideRefasterTemplate(TreePath path) {
+      for (Tree node : path) {
+        if (node instanceof MethodTree methodTree) {
+          if (hasAnnotation(methodTree, BEFORE_TEMPLATE_ANNOTATION, state)
+              || hasAnnotation(methodTree, AFTER_TEMPLATE_ANNOTATION, state)) {
+            return true;
+          }
+        }
+      }
+      return false;
+    }
+
     private boolean exemptedFieldBySuperType(Type type, VisitorState state) {
       return EXEMPTING_FIELD_SUPER_TYPES.stream()
           .anyMatch(t -> isSubtype(type, state.getTypeFromString(t), state));
diff --git a/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java b/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java
index be6358020ea..628491ab51b 100644
--- a/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java
+++ b/core/src/test/java/com/google/errorprone/bugpatterns/UnusedVariableTest.java
@@ -2266,4 +2266,110 @@ public static void main(String[] args) {
         .expectUnchanged()
         .doTest();
   }
+
+  @Test
+  public void refasterBeforeTemplate_unusedLocalVariable_noFinding() {
+    helper
+        .addSourceLines(
+            "BeforeTemplate.java",
+            """
+            package com.google.errorprone.refaster.annotation;
+
+            public @interface BeforeTemplate {}
+            """)
+        .addSourceLines(
+            "Test.java",
+            """
+            import com.google.errorprone.refaster.annotation.BeforeTemplate;
+
+            class Test {
+              @BeforeTemplate
+              void before(String s) {
+                String local = s.trim();
+              }
+            }
+            """)
+        .doTest();
+  }
+
+  @Test
+  public void refasterAfterTemplate_unusedLocalVariable_noFinding() {
+    helper
+        .addSourceLines(
+            "AfterTemplate.java",
+            """
+            package com.google.errorprone.refaster.annotation;
+
+            public @interface AfterTemplate {}
+            """)
+        .addSourceLines(
+            "Test.java",
+            """
+            import com.google.errorprone.refaster.annotation.AfterTemplate;
+
+            class Test {
+              @AfterTemplate
+              void after(String s) {
+                String local = s.trim();
+              }
+            }
+            """)
+        .doTest();
+  }
+
+  @Test
+  public void refasterTemplate_unusedParameter_flagged() {
+    helper
+        .addSourceLines(
+            "BeforeTemplate.java",
+            """
+            package com.google.errorprone.refaster.annotation;
+
+            public @interface BeforeTemplate {}
+            """)
+        .addSourceLines(
+            "Test.java",
+            """
+            import com.google.errorprone.refaster.annotation.BeforeTemplate;
+
+            class Test {
+              @BeforeTemplate
+              // BUG: Diagnostic contains: The parameter 'bar' is never read
+              void before(String foo, String bar) {
+                System.out.println(foo);
+              }
+            }
+            """)
+        .doTest();
+  }
+
+  @Test
+  public void refasterTemplate_regularMethod_unusedLocalVariable_flagged() {
+    helper
+        .addSourceLines(
+            "BeforeTemplate.java",
+            """
+            package com.google.errorprone.refaster.annotation;
+
+            public @interface BeforeTemplate {}
+            """)
+        .addSourceLines(
+            "Test.java",
+            """
+            import com.google.errorprone.refaster.annotation.BeforeTemplate;
+
+            class Test {
+              @BeforeTemplate
+              void before(String s) {
+                String local = s.trim();
+              }
+
+              void regularMethod(String s) {
+                // BUG: Diagnostic contains: The local variable 'local' is never read
+                String local = s.trim();
+              }
+            }
+            """)
+        .doTest();
+  }
 }