diff --git a/compiler/rustc_mir_transform/src/liveness.rs b/compiler/rustc_mir_transform/src/liveness.rs
index af1bad9f1baa1..0fccb4b194df7 100644
--- a/compiler/rustc_mir_transform/src/liveness.rs
+++ b/compiler/rustc_mir_transform/src/liveness.rs
@@ -906,6 +906,49 @@ impl<'a, 'tcx> AssignmentResult<'a, 'tcx> {
         false
     }
 
+    /// Check for source-level uses that may have been removed from reachable MIR.
+    fn is_local_used_in_source(&self, name: Symbol, def_span: Span) -> bool {
+        use rustc_hir as hir;
+        use rustc_hir::def::Res;
+        use rustc_hir::intravisit::{self, Visitor};
+
+        let Some(body_def_id) = self.body.source.def_id().as_local() else { return false };
+        let Some(hir_body) = self.tcx.hir_maybe_body_owned_by(body_def_id) else { return false };
+        let typeck_results = self.tcx.typeck(body_def_id);
+
+        struct LocalUseVisitor<'a, 'tcx> {
+            tcx: TyCtxt<'tcx>,
+            typeck_results: &'a ty::TypeckResults<'tcx>,
+            name: Symbol,
+            def_span: Span,
+            found: bool,
+        }
+
+        impl<'a, 'tcx> Visitor<'tcx> for LocalUseVisitor<'a, 'tcx> {
+            fn visit_expr(&mut self, expr: &'tcx hir::Expr<'tcx>) {
+                if self.found {
+                    return;
+                }
+
+                if let hir::ExprKind::Path(qpath) = &expr.kind
+                    && let Res::Local(hir_id) = self.typeck_results.qpath_res(qpath, expr.hir_id)
+                    && self.tcx.hir_name(hir_id) == self.name
+                    && self.tcx.hir_span(hir_id) == self.def_span
+                {
+                    self.found = true;
+                    return;
+                }
+
+                intravisit::walk_expr(self, expr);
+            }
+        }
+
+        let mut visitor =
+            LocalUseVisitor { tcx: self.tcx, typeck_results, name, def_span, found: false };
+        visitor.visit_body(hir_body);
+        visitor.found
+    }
+
     /// Report fully unused locals, and forget the corresponding assignments.
     fn report_fully_unused(&mut self) {
         let tcx = self.tcx;
@@ -995,8 +1038,20 @@ impl<'a, 'tcx> AssignmentResult<'a, 'tcx> {
                 }
             };
 
+            let is_used_after_uninitialized = self.body.local_kind(local) == LocalKind::Temp
+                && matches!(binding.opt_match_place, Some((None, _)))
+                && self.is_local_used_in_source(name, def_span);
+
             let statements = &mut self.assignments[index];
             if statements.is_empty() {
+                if is_used_after_uninitialized {
+                    // A local from `let PAT = ...` normally has an assignment recorded for the
+                    // value it initializes. If no assignment was recorded in reachable MIR, the
+                    // initializer did not complete. If the local still has a source-level use,
+                    // that use was made unreachable by the diverging initializer.
+                    continue;
+                }
+
                 if !self.is_local_in_reachable_code(local) {
                     continue;
                 }
diff --git a/tests/ui/lint/unused/unused-never-binding-issue-158783.rs b/tests/ui/lint/unused/unused-never-binding-issue-158783.rs
new file mode 100644
index 0000000000000..a75363be4b28b
--- /dev/null
+++ b/tests/ui/lint/unused/unused-never-binding-issue-158783.rs
@@ -0,0 +1,39 @@
+//@ check-pass
+
+#![warn(unused_variables)]
+
+// A binding initialized by a diverging expression should not be reported as unused.
+
+fn diverge() -> ! {
+    loop {}
+}
+
+fn test1() {
+    let res: Result<u32, u32> = diverge();
+    eprintln!("{:?}", res);
+}
+
+fn foo() -> ! {
+    todo!()
+}
+
+fn test2() {
+    let res: Result<u32, u32> = foo();
+    match res {
+        Ok(v) => todo!(),
+        Err(err) => todo!(),
+    }
+}
+
+fn test3() -> i32 {
+    let x = {
+        //~^ WARN unused variable: `x`
+        return 5;
+    };
+}
+
+fn main() {
+    test1();
+    test2();
+    test3();
+}
diff --git a/tests/ui/lint/unused/unused-never-binding-issue-158783.stderr b/tests/ui/lint/unused/unused-never-binding-issue-158783.stderr
new file mode 100644
index 0000000000000..14a54cbdccc21
--- /dev/null
+++ b/tests/ui/lint/unused/unused-never-binding-issue-158783.stderr
@@ -0,0 +1,14 @@
+warning: unused variable: `x`
+  --> $DIR/unused-never-binding-issue-158783.rs:29:9
+   |
+LL |     let x = {
+   |         ^ help: if this is intentional, prefix it with an underscore: `_x`
+   |
+note: the lint level is defined here
+  --> $DIR/unused-never-binding-issue-158783.rs:3:9
+   |
+LL | #![warn(unused_variables)]
+   |         ^^^^^^^^^^^^^^^^
+
+warning: 1 warning emitted
+
diff --git a/tests/ui/reachable/never-assign-dead-code.rs b/tests/ui/reachable/never-assign-dead-code.rs
index 05e5d5551336b..826aa76a8ef86 100644
--- a/tests/ui/reachable/never-assign-dead-code.rs
+++ b/tests/ui/reachable/never-assign-dead-code.rs
@@ -7,7 +7,7 @@
 #![warn(unused)]
 
 fn main() {
-    let x: ! = panic!("aah"); //~ WARN unused
+    let x: ! = panic!("aah");
     drop(x); //~ WARN unreachable
     //~^ WARN unreachable
 }
diff --git a/tests/ui/reachable/never-assign-dead-code.stderr b/tests/ui/reachable/never-assign-dead-code.stderr
index 5660bde5c279b..80352b565e6c7 100644
--- a/tests/ui/reachable/never-assign-dead-code.stderr
+++ b/tests/ui/reachable/never-assign-dead-code.stderr
@@ -21,13 +21,5 @@ LL |     drop(x);
    |     |
    |     unreachable call
 
-warning: unused variable: `x`
-  --> $DIR/never-assign-dead-code.rs:10:9
-   |
-LL |     let x: ! = panic!("aah");
-   |         ^ help: if this is intentional, prefix it with an underscore: `_x`
-   |
-   = note: `#[warn(unused_variables)]` implied by `#[warn(unused)]`
-
-warning: 3 warnings emitted
+warning: 2 warnings emitted