diff --git a/src/checkother.cpp b/src/checkother.cpp
index 768efcebb..da8f8ce82 100644
--- a/src/checkother.cpp
+++ b/src/checkother.cpp
@@ -874,11 +874,20 @@ void CheckOther::functionVariableUsage()
             else if (Token::Match(tok, "struct|union|class {") ||
                      Token::Match(tok, "struct|union|class %type% {"))
             {
-                while (tok && tok->str() != "}")
+                int indentlevel0 = indentlevel;
+
+                while (tok->str() != "{")
                     tok = tok->next();
-                if (tok)
-                    continue;
-                break;
+
+                do
+                {
+                    if (tok->str() == "{")
+                        indentlevel++;
+                    else if (tok->str() == "}")
+                        indentlevel--;
+                    tok = tok->next();
+                }
+                while (tok && indentlevel > indentlevel0);
             }
 
             if (Token::Match(tok, "[;{}] bool|char|short|int|long|float|double %var% ;|="))
diff --git a/test/testunusedvar.cpp b/test/testunusedvar.cpp
index 6edba1b9c..87946d389 100644
--- a/test/testunusedvar.cpp
+++ b/test/testunusedvar.cpp
@@ -68,6 +68,7 @@ private:
         // Don't give false positives for variables in structs/unions
         TEST_CASE(localvarStruct1);
         TEST_CASE(localvarStruct2);
+        TEST_CASE(localvarStruct3);
 
         TEST_CASE(localvarOp);          // Usage with arithmetic operators
         TEST_CASE(localvarInvert);      // Usage with inverted variable
@@ -259,6 +260,19 @@ private:
         ASSERT_EQUALS(std::string(""), errout.str());
     }
 
+    void localvarStruct3()
+    {
+        functionVariableUsage("void foo()\n"
+                              "{\n"
+                              "    int a = 10;\n"
+                              "    union { struct { unsigned char x; }; unsigned char z; };\n"
+                              "    do {\n"
+                              "        func();\n"
+                              "    } while(a--);\n"
+                              "}\n");
+        ASSERT_EQUALS(std::string(""), errout.str());
+    }
+
 
 
     void localvarOp()