diff --git a/plugins/kotlin/code-insight/inspections-k2/tests/test/org/jetbrains/kotlin/idea/k2/inspections/tests/K2UnusedSymbolHighlightingTestGenerated.java b/plugins/kotlin/code-insight/inspections-k2/tests/test/org/jetbrains/kotlin/idea/k2/inspections/tests/K2UnusedSymbolHighlightingTestGenerated.java
index 73eb8b11ca11..0bccbcb9b78d 100644
--- a/plugins/kotlin/code-insight/inspections-k2/tests/test/org/jetbrains/kotlin/idea/k2/inspections/tests/K2UnusedSymbolHighlightingTestGenerated.java
+++ b/plugins/kotlin/code-insight/inspections-k2/tests/test/org/jetbrains/kotlin/idea/k2/inspections/tests/K2UnusedSymbolHighlightingTestGenerated.java
@@ -307,6 +307,11 @@ public abstract class K2UnusedSymbolHighlightingTestGenerated extends AbstractK2
             runTest("../../../idea/tests/testData/inspectionsLocal/unusedSymbol/expectFunctionParameter.kt");
         }
 
+        @TestMetadata("externalFunWithUnusedParameter.kt")
+        public void testExternalFunWithUnusedParameter() throws Exception {
+            runTest("../../../idea/tests/testData/inspectionsLocal/unusedSymbol/externalFunWithUnusedParameter.kt");
+        }
+
         @TestMetadata("functionCall.kt")
         public void testFunctionCall() throws Exception {
             runTest("../../../idea/tests/testData/inspectionsLocal/unusedSymbol/functionCall.kt");
diff --git a/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/K2UnusedSymbolUtil.kt b/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/K2UnusedSymbolUtil.kt
index 1904d4315280..9e618a2d32ed 100644
--- a/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/K2UnusedSymbolUtil.kt
+++ b/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/K2UnusedSymbolUtil.kt
@@ -130,6 +130,9 @@ object K2UnusedSymbolUtil {
   context(KaSession)
   @OptIn(KaExperimentalApi::class)
   fun getPsiToReportProblem(declaration: KtNamedDeclaration, isJavaEntryPointInspection: UnusedDeclarationInspectionBase): PsiElement? {
+      if (((declaration as? KtParameter)?.parent?.parent as? KtModifierListOwner)?.hasModifier(KtTokens.EXTERNAL_KEYWORD) == true) {
+          return null
+      }
       val symbol = declaration.symbol
       if (declaration.languageVersionSettings.getFlag(
           AnalysisFlags.explicitApiMode) != ExplicitApiMode.DISABLED && symbol.compilerVisibility.isPublicAPI) {
@@ -647,7 +650,7 @@ object K2UnusedSymbolUtil {
       return when {
           symbol is KaConstructorSymbol -> {
               val classSymbol = symbol.containingDeclaration as? KaNamedClassSymbol ?: return false
-              !classSymbol.isInline && !(classSymbol.visibility == KaSymbolVisibility.PRIVATE)
+              !classSymbol.isInline && classSymbol.visibility != KaSymbolVisibility.PRIVATE
           }
           hasModifier(KtTokens.INTERNAL_KEYWORD) -> false
           symbol !is KaNamedFunctionSymbol -> true
diff --git a/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/KotlinUnusedHighlightingVisitor.kt b/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/KotlinUnusedHighlightingVisitor.kt
index cbd2a089232a..7c6b61a27cd5 100644
--- a/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/KotlinUnusedHighlightingVisitor.kt
+++ b/plugins/kotlin/highlighting/highlighting-k2/src/org/jetbrains/kotlin/idea/highlighting/KotlinUnusedHighlightingVisitor.kt
@@ -161,9 +161,10 @@ class KotlinUnusedHighlightingVisitor(private val ktFile: KtFile) {
                                   holder: HighlightInfoHolder) {
         if (!K2UnusedSymbolUtil.isApplicableByPsi(declaration)) return
         if (refHolder.isUsedLocally(declaration)) return // even for non-private declarations our refHolder might have usage info
-        val mustBeLocallyReferenced = declaration is KtParameter && !(declaration.hasValOrVar()) ||
-                                      declaration.hasModifier(KtTokens.PRIVATE_KEYWORD) ||
-                                      ((declaration.parent as? KtClassBody)?.parent as? KtClassOrObject)?.isLocal == true
+        val mustBeLocallyReferenced = declaration is KtParameter && !declaration.hasValOrVar()
+                                               && (declaration.parent?.parent as? KtModifierListOwner)?.hasModifier(KtTokens.EXTERNAL_KEYWORD) != true // parameters of external functions might be referenced elsewhere
+                || declaration.hasModifier(KtTokens.PRIVATE_KEYWORD)
+                || ((declaration.parent as? KtClassBody)?.parent as? KtClassOrObject)?.isLocal == true
         if (SuppressionUtil.inspectionResultSuppressed(declaration, deadCodeInspection)) {
             return
         }
diff --git a/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java b/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
index a4b7eac36bb8..d395879228bd 100644
--- a/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
+++ b/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
@@ -18173,6 +18173,11 @@ public abstract class LocalInspectionTestGenerated extends AbstractLocalInspecti
                 runTest("testData/inspectionsLocal/unusedSymbol/expectFunctionParameter.kt");
             }
 
+            @TestMetadata("externalFunWithUnusedParameter.kt")
+            public void testExternalFunWithUnusedParameter() throws Exception {
+                runTest("testData/inspectionsLocal/unusedSymbol/externalFunWithUnusedParameter.kt");
+            }
+
             @TestMetadata("functionCall.kt")
             public void testFunctionCall() throws Exception {
                 runTest("testData/inspectionsLocal/unusedSymbol/functionCall.kt");
diff --git a/plugins/kotlin/idea/tests/testData/inspectionsLocal/unusedSymbol/externalFunWithUnusedParameter.kt b/plugins/kotlin/idea/tests/testData/inspectionsLocal/unusedSymbol/externalFunWithUnusedParameter.kt
new file mode 100644
index 000000000000..a53f5485401d
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/inspectionsLocal/unusedSymbol/externalFunWithUnusedParameter.kt
@@ -0,0 +1,5 @@
+// PROBLEM: none
+class M {
+    private external fun sdkfjlsdkjf(<caret>sdfsd: Int):Int
+    override fun hashCode() = sdkfjlsdkjf(0)
+}
\ No newline at end of file