diff --git a/change_notes/2023-07-26-unused-local-variable.md b/change_notes/2023-07-26-unused-local-variable.md
new file mode 100644
index 0000000000..1f71a5b67f
--- /dev/null
+++ b/change_notes/2023-07-26-unused-local-variable.md
@@ -0,0 +1 @@
+ - `M0-1-3` - Consider constexpr variables used in template instantiations as "used".
diff --git a/cpp/autosar/src/rules/M0-1-3/UnusedLocalVariable.ql b/cpp/autosar/src/rules/M0-1-3/UnusedLocalVariable.ql
index 50aa5ea919..3b93402261 100644
--- a/cpp/autosar/src/rules/M0-1-3/UnusedLocalVariable.ql
+++ b/cpp/autosar/src/rules/M0-1-3/UnusedLocalVariable.ql
@@ -18,9 +18,37 @@ import cpp
 import codingstandards.cpp.autosar
 import codingstandards.cpp.deadcode.UnusedVariables
 
+/** Gets the constant value of a constexpr variable. */
+private string getConstExprValue(Variable v) {
+  result = v.getInitializer().getExpr().getValue() and
+  v.isConstexpr()
+}
+
+// This predicate is similar to getUseCount for M0-1-4 except that it also
+// considers static_asserts. This was created to cater for M0-1-3 specifically
+// and hence, doesn't attempt to reuse the M0-1-4 specific predicate
+// - getUseCount()
+int getUseCountConservatively(Variable v) {
+  result =
+        count(VariableAccess access | access = v.getAnAccess())
+        + count(UserProvidedConstructorFieldInit cfi | cfi.getTarget() = v) +
+        // For constexpr variables used as template arguments, we don't see accesses (just the
+        // appropriate literals). We therefore take a conservative approach and count the number of
+        // template instantiations that use the given constant, and consider each one to be a use
+        // of the variable
+        count(ClassTemplateInstantiation cti |
+          cti.getTemplateArgument(_).(Expr).getValue() = getConstExprValue(v)
+        )
+        // For static asserts too, check if there is a child which has the same value
+        // as the constexpr variable.
+        + count(StaticAssert s |
+         s.getCondition().getAChild*().getValue() = getConstExprValue(v))
+}
+
 from PotentiallyUnusedLocalVariable v
 where
   not isExcluded(v, DeadCodePackage::unusedLocalVariableQuery()) and
   // Local variable is never accessed
   not exists(v.getAnAccess())
+  and getUseCountConservatively(v) = 0
 select v, "Local variable " + v.getName() + " in " + v.getFunction().getName() + " is not used."
diff --git a/cpp/autosar/test/rules/M0-1-3/test.cpp b/cpp/autosar/test/rules/M0-1-3/test.cpp
index 7729371e5e..9dbe9692cd 100644
--- a/cpp/autosar/test/rules/M0-1-3/test.cpp
+++ b/cpp/autosar/test/rules/M0-1-3/test.cpp
@@ -44,4 +44,37 @@ void test_side_effect_init() {
   LA a; // NON_COMPLIANT - no constructor called
   LC c; // COMPLIANT - constructor called which is considered to potentially
         // have side effects
-}
\ No newline at end of file
+}
+
+#include <array>
+#include <cstdio>
+template <int t> class CharBuffer {
+public:
+  int member[t];
+  CharBuffer() : member{0} {}
+};
+
+int test_constexpr_in_template_inst() {
+  constexpr int line_length = 1024U; // COMPLIANT - used in template inst.
+                                     // of buffer.
+  CharBuffer<line_length> buffer{};
+  return buffer.member[0];
+}
+
+enum DataType : unsigned char {
+  int8,
+  int16,
+};
+
+template <typename... Types> int test_constexpr_in_static_assert() {
+  const std::array<DataType, sizeof...(Types)> lldts{int8};
+  const std::array<DataType, sizeof...(Types)> llams{int16};
+  constexpr std::size_t mssu = 64 * 1024; // COMPLIANT - used in static assert.
+  static_assert((sizeof(lldts) + sizeof(llams)) <= mssu, "assert");
+  return 0;
+}
+
+int baz() {
+  test_constexpr_in_static_assert<int>();
+  return 0;
+}
diff --git a/rule_packages/cpp/DeadCode.json b/rule_packages/cpp/DeadCode.json
index f322f5b0a7..53d6b41aa5 100644
--- a/rule_packages/cpp/DeadCode.json
+++ b/rule_packages/cpp/DeadCode.json
@@ -238,7 +238,10 @@
           "tags": [
             "readability",
             "maintainability"
-          ]
+          ],
+          "implementation_scope": {
+            "description": "In limited cases, this query can raise false-positives for variables that are defined as constexpr and used in an expression to instantiate a template."
+          }
         },
         {
           "description": "Unused variables complicate the program and can indicate a possible mistake on the part of the programmer.",
@@ -344,4 +347,4 @@
       "title": "There shall be no dead code."
     }
   }
-}
\ No newline at end of file
+}
diff --git a/rule_packages/cpp/Templates.json b/rule_packages/cpp/Templates.json
index faf3c67155..006f81bda6 100644
--- a/rule_packages/cpp/Templates.json
+++ b/rule_packages/cpp/Templates.json
@@ -192,4 +192,4 @@
       "title": "In a class template with a dependent base, any name that may be found in that dependent base shall be referred to using a qualified-id or this->."
     }
   }
-}
\ No newline at end of file
+}