diff --git a/Changes b/Changes
index f8d51a059..f0e862842 100644
--- a/Changes
+++ b/Changes
@@ -20,6 +20,7 @@ Verilator 5.015 devel
 * Fix jumping over object initialization (#4411). [Krzysztof Boroński]
 * Fix variable lifetimes in extern methods (#4414). [Krzysztof Boroński]
 * Fix multple function definitions in V3Sched (#4416). [Hennadii Chernyshchyk]
+* Fix false UNUSEDPARAM on generate localparam (#4427). [Bill Pringlemeir]
 
 
 Verilator 5.014 2023-08-06
diff --git a/src/V3LinkDot.cpp b/src/V3LinkDot.cpp
index 53ab2238a..2718e5c37 100644
--- a/src/V3LinkDot.cpp
+++ b/src/V3LinkDot.cpp
@@ -2256,6 +2256,11 @@ private:
         // parameters or vice versa
         return pinp->param() == refVarType.isParam();
     }
+    void updateVarUse(AstVar* nodep) {
+        // Avoid dotted.PARAM false positive when in a parameter block
+        // that is if ()'ed off by same dotted name as another block
+        if (nodep && nodep->isParam()) nodep->usedParam(true);
+    }
 
     // VISITs
     void visit(AstNetlist* nodep) override {
@@ -2922,6 +2927,7 @@ private:
             if (AstVar* const varp
                 = foundp ? foundToVarp(foundp, nodep, nodep->access()) : nullptr) {
                 nodep->varp(varp);
+                updateVarUse(nodep->varp());
                 // Generally set by parse, but might be an import
                 nodep->classOrPackagep(foundp->classOrPackagep());
             }
@@ -2964,6 +2970,7 @@ private:
                 AstVar* const varp
                     = foundp ? foundToVarp(foundp, nodep, nodep->access()) : nullptr;
                 nodep->varp(varp);
+                updateVarUse(nodep->varp());
                 UINFO(7, "         Resolved " << nodep << endl);  // Also prints varp
                 if (!nodep->varp()) {
                     nodep->v3error("Can't find definition of "
@@ -3001,6 +3008,7 @@ private:
                     // later optimizations to deal with VarXRef.
                     nodep->varp(vscp->varp());
                     nodep->varScopep(vscp);
+                    updateVarUse(nodep->varp());
                     UINFO(7, "         Resolved " << nodep << endl);  // Also prints taskp
                     AstVarRef* const newvscp
                         = new AstVarRef{nodep->fileline(), vscp, nodep->access()};
diff --git a/test_regress/t/t_lint_unused_bad.v b/test_regress/t/t_lint_unused_bad.v
index cc837c4ec..abcd94e51 100644
--- a/test_regress/t/t_lint_unused_bad.v
+++ b/test_regress/t/t_lint_unused_bad.v
@@ -64,10 +64,23 @@ module sub;
    genvar linter_genvar4;
    // verilator lint_on UNUSED
 
+   case (2)
+     1: begin : named
+        localparam BLOCK_PARAM = 10;
+     end
+     2: begin : named
+        localparam BLOCK_PARAM = 20;
+     end
+     3: begin : named
+        localparam BLOCK_PARAM = 30;
+     end
+   endcase
+
    initial begin
       if (0 && assunu1[0] != 0 && udrb2 != 0) begin end
       if (0 && assunub2[THREE] && assunub2[1:0]!=0) begin end
       if (0 && mixed[1:0] != 0) begin end
+      if (named.BLOCK_PARAM != 20) $stop;
    end
 
    generate