diff --git a/checkother.cpp b/checkother.cpp
index 7fd1a7a5c..c0c026d71 100644
--- a/checkother.cpp
+++ b/checkother.cpp
@@ -869,7 +869,7 @@ void CheckOther::functionVariableUsage()
             if ((Token::Match(tok,"[(=&!]") || isOp(tok)) && Token::Match(tok->next(), "%var%"))
                 varUsage[ tok->strAt(1) ] |= USAGE_READ;
 
-            if (Token::Match(tok, "-=|+=|*=|/= %var%"))
+            if (Token::Match(tok, "-=|+=|*=|/= %var%") || Token::Match(tok, "|= %var%"))
                 varUsage[ tok->strAt(1) ] |= USAGE_READ;
 
             if (Token::Match(tok, "%var%") && (tok->next()->str()==")" || isOp(tok->next())))
diff --git a/testunusedvar.cpp b/testunusedvar.cpp
index 85042fd25..12ffc8041 100644
--- a/testunusedvar.cpp
+++ b/testunusedvar.cpp
@@ -71,6 +71,7 @@ private:
         TEST_CASE( localvarInvert );    // Usage with inverted variable
         TEST_CASE( localvarIf );        // Usage in if
         TEST_CASE( localvarIfElse );    // return tmp1 ? tmp2 : tmp3;
+        TEST_CASE( localvarOpAssign );  // a |= b;
     }
 
     void structmember1()
@@ -264,6 +265,17 @@ private:
         ASSERT_EQUALS( std::string(""), errout.str() );
     }
 
+    void localvarOpAssign()
+    {
+        functionVariableUsage( "void foo()\n"
+                               "{\n"
+                               "    int a = 1;\n"
+                               "    int b = 2;\n"
+                               "    a |= b;\n"
+                               "}\n" );
+        ASSERT_EQUALS( std::string("[test.cpp:2]: Variable 'a' is assigned a value that is never used\n"), errout.str() );
+    }
+
 
 };