diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 9455b659c08..ca5ce39cef7 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -1187,7 +1187,7 @@ namespace ts {
                         }
                         break;
                 }
-                if (location.kind !== SyntaxKind.Block) {
+                if (isNonBlockLocation(location)) {
                     lastNonBlockLocation = location;
                 }
                 lastLocation = location;
@@ -1195,7 +1195,7 @@ namespace ts {
             }
 
             // We just climbed up parents looking for the name, meaning that we started in a descendant node of `lastLocation`.
-            // If `result === lastLocation.symbol`, that means that we are somewhere inside `lastLocation` looking up a name, and resolving to `lastLocation` itself.
+            // If `result === lastNonBlockLocation.symbol`, that means that we are somewhere inside `lastNonBlockLocation` looking up a name, and resolving to `lastLocation` itself.
             // That means that this is a self-reference of `lastLocation`, and shouldn't count this when considering whether `lastLocation` is used.
             if (isUse && result && nameNotFoundMessage && noUnusedIdentifiers && result !== lastNonBlockLocation.symbol) {
                 result.isReferenced = true;
@@ -1278,6 +1278,20 @@ namespace ts {
             return result;
         }
 
+        function isNonBlockLocation({ kind }: Node): boolean {
+            switch (kind) {
+                case SyntaxKind.Block:
+                case SyntaxKind.ModuleBlock:
+                case SyntaxKind.SwitchStatement:
+                case SyntaxKind.CaseBlock:
+                case SyntaxKind.CaseClause:
+                case SyntaxKind.DefaultClause:
+                    return false;
+                default:
+                    return true;
+            }
+        }
+
         function diagnosticName(nameArg: __String | Identifier) {
             return isString(nameArg) ? unescapeLeadingUnderscores(nameArg as __String) : declarationNameToString(nameArg as Identifier);
         }
diff --git a/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.errors.txt b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.errors.txt
new file mode 100644
index 00000000000..9ea0147978a
--- /dev/null
+++ b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.errors.txt
@@ -0,0 +1,29 @@
+tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts(2,14): error TS6133: 'f' is declared but its value is never read.
+tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts(8,22): error TS6133: 'g' is declared but its value is never read.
+tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts(12,22): error TS6133: 'h' is declared but its value is never read.
+
+
+==== tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts (3 errors) ====
+    namespace n {
+        function f() {
+                 ~
+!!! error TS6133: 'f' is declared but its value is never read.
+            f;
+        }
+    
+        switch (0) {
+            case 0:
+                function g() {
+                         ~
+!!! error TS6133: 'g' is declared but its value is never read.
+                    g;
+                }
+            default:
+                function h() {
+                         ~
+!!! error TS6133: 'h' is declared but its value is never read.
+                    h;
+                }
+        }
+    }
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.js b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.js
new file mode 100644
index 00000000000..2b33ed8c31d
--- /dev/null
+++ b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.js
@@ -0,0 +1,36 @@
+//// [noUnusedLocals_selfReference_skipsBlockLocations.ts]
+namespace n {
+    function f() {
+        f;
+    }
+
+    switch (0) {
+        case 0:
+            function g() {
+                g;
+            }
+        default:
+            function h() {
+                h;
+            }
+    }
+}
+
+
+//// [noUnusedLocals_selfReference_skipsBlockLocations.js]
+var n;
+(function (n) {
+    function f() {
+        f;
+    }
+    switch (0) {
+        case 0:
+            function g() {
+                g;
+            }
+        default:
+            function h() {
+                h;
+            }
+    }
+})(n || (n = {}));
diff --git a/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.symbols b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.symbols
new file mode 100644
index 00000000000..7607caf3d7e
--- /dev/null
+++ b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.symbols
@@ -0,0 +1,29 @@
+=== tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts ===
+namespace n {
+>n : Symbol(n, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 0, 0))
+
+    function f() {
+>f : Symbol(f, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 0, 13))
+
+        f;
+>f : Symbol(f, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 0, 13))
+    }
+
+    switch (0) {
+        case 0:
+            function g() {
+>g : Symbol(g, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 6, 15))
+
+                g;
+>g : Symbol(g, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 6, 15))
+            }
+        default:
+            function h() {
+>h : Symbol(h, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 10, 16))
+
+                h;
+>h : Symbol(h, Decl(noUnusedLocals_selfReference_skipsBlockLocations.ts, 10, 16))
+            }
+    }
+}
+
diff --git a/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.types b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.types
new file mode 100644
index 00000000000..6675db4f1c3
--- /dev/null
+++ b/tests/baselines/reference/noUnusedLocals_selfReference_skipsBlockLocations.types
@@ -0,0 +1,33 @@
+=== tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts ===
+namespace n {
+>n : typeof n
+
+    function f() {
+>f : () => void
+
+        f;
+>f : () => void
+    }
+
+    switch (0) {
+>0 : 0
+
+        case 0:
+>0 : 0
+
+            function g() {
+>g : () => void
+
+                g;
+>g : () => void
+            }
+        default:
+            function h() {
+>h : () => void
+
+                h;
+>h : () => void
+            }
+    }
+}
+
diff --git a/tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts b/tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts
new file mode 100644
index 00000000000..bcaa9010715
--- /dev/null
+++ b/tests/cases/compiler/noUnusedLocals_selfReference_skipsBlockLocations.ts
@@ -0,0 +1,18 @@
+// @noUnusedLocals: true
+
+namespace n {
+    function f() {
+        f;
+    }
+
+    switch (0) {
+        case 0:
+            function g() {
+                g;
+            }
+        default:
+            function h() {
+                h;
+            }
+    }
+}