diff --git a/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.js b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.js
new file mode 100644
index 00000000000..b854278a3e3
--- /dev/null
+++ b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.js
@@ -0,0 +1,35 @@
+//// [unusedLocalsAndParametersTypeAliases.ts]
+
+// used in a declaration
+type handler1 = () => void;
+export interface I1 {
+    getHandler: handler1;
+}
+
+// exported
+export type handler2 = () => void;
+
+// used in extends clause
+type handler3 = () => void;
+export interface I3<T extends handler3> {
+    getHandler: T;
+}
+
+// used in another type alias declaration
+type handler4 = () => void;
+type handler5 = handler4 | (()=>number);
+var x: handler5;
+x();
+
+// used as type argument
+type handler6 = () => void;
+var y: Array<handler6>;
+y[0]();
+    
+
+//// [unusedLocalsAndParametersTypeAliases.js]
+"use strict";
+var x;
+x();
+var y;
+y[0]();
diff --git a/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.symbols b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.symbols
new file mode 100644
index 00000000000..9f9004d7a28
--- /dev/null
+++ b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.symbols
@@ -0,0 +1,59 @@
+=== tests/cases/compiler/unusedLocalsAndParametersTypeAliases.ts ===
+
+// used in a declaration
+type handler1 = () => void;
+>handler1 : Symbol(handler1, Decl(unusedLocalsAndParametersTypeAliases.ts, 0, 0))
+
+export interface I1 {
+>I1 : Symbol(I1, Decl(unusedLocalsAndParametersTypeAliases.ts, 2, 27))
+
+    getHandler: handler1;
+>getHandler : Symbol(I1.getHandler, Decl(unusedLocalsAndParametersTypeAliases.ts, 3, 21))
+>handler1 : Symbol(handler1, Decl(unusedLocalsAndParametersTypeAliases.ts, 0, 0))
+}
+
+// exported
+export type handler2 = () => void;
+>handler2 : Symbol(handler2, Decl(unusedLocalsAndParametersTypeAliases.ts, 5, 1))
+
+// used in extends clause
+type handler3 = () => void;
+>handler3 : Symbol(handler3, Decl(unusedLocalsAndParametersTypeAliases.ts, 8, 34))
+
+export interface I3<T extends handler3> {
+>I3 : Symbol(I3, Decl(unusedLocalsAndParametersTypeAliases.ts, 11, 27))
+>T : Symbol(T, Decl(unusedLocalsAndParametersTypeAliases.ts, 12, 20))
+>handler3 : Symbol(handler3, Decl(unusedLocalsAndParametersTypeAliases.ts, 8, 34))
+
+    getHandler: T;
+>getHandler : Symbol(I3.getHandler, Decl(unusedLocalsAndParametersTypeAliases.ts, 12, 41))
+>T : Symbol(T, Decl(unusedLocalsAndParametersTypeAliases.ts, 12, 20))
+}
+
+// used in another type alias declaration
+type handler4 = () => void;
+>handler4 : Symbol(handler4, Decl(unusedLocalsAndParametersTypeAliases.ts, 14, 1))
+
+type handler5 = handler4 | (()=>number);
+>handler5 : Symbol(handler5, Decl(unusedLocalsAndParametersTypeAliases.ts, 17, 27))
+>handler4 : Symbol(handler4, Decl(unusedLocalsAndParametersTypeAliases.ts, 14, 1))
+
+var x: handler5;
+>x : Symbol(x, Decl(unusedLocalsAndParametersTypeAliases.ts, 19, 3))
+>handler5 : Symbol(handler5, Decl(unusedLocalsAndParametersTypeAliases.ts, 17, 27))
+
+x();
+>x : Symbol(x, Decl(unusedLocalsAndParametersTypeAliases.ts, 19, 3))
+
+// used as type argument
+type handler6 = () => void;
+>handler6 : Symbol(handler6, Decl(unusedLocalsAndParametersTypeAliases.ts, 20, 4))
+
+var y: Array<handler6>;
+>y : Symbol(y, Decl(unusedLocalsAndParametersTypeAliases.ts, 24, 3))
+>Array : Symbol(Array, Decl(lib.d.ts, --, --), Decl(lib.d.ts, --, --))
+>handler6 : Symbol(handler6, Decl(unusedLocalsAndParametersTypeAliases.ts, 20, 4))
+
+y[0]();
+>y : Symbol(y, Decl(unusedLocalsAndParametersTypeAliases.ts, 24, 3))
+    
diff --git a/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.types b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.types
new file mode 100644
index 00000000000..82c87deb7d0
--- /dev/null
+++ b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases.types
@@ -0,0 +1,63 @@
+=== tests/cases/compiler/unusedLocalsAndParametersTypeAliases.ts ===
+
+// used in a declaration
+type handler1 = () => void;
+>handler1 : () => void
+
+export interface I1 {
+>I1 : I1
+
+    getHandler: handler1;
+>getHandler : () => void
+>handler1 : () => void
+}
+
+// exported
+export type handler2 = () => void;
+>handler2 : () => void
+
+// used in extends clause
+type handler3 = () => void;
+>handler3 : () => void
+
+export interface I3<T extends handler3> {
+>I3 : I3<T>
+>T : T
+>handler3 : () => void
+
+    getHandler: T;
+>getHandler : T
+>T : T
+}
+
+// used in another type alias declaration
+type handler4 = () => void;
+>handler4 : () => void
+
+type handler5 = handler4 | (()=>number);
+>handler5 : (() => void) | (() => number)
+>handler4 : () => void
+
+var x: handler5;
+>x : (() => void) | (() => number)
+>handler5 : (() => void) | (() => number)
+
+x();
+>x() : void | number
+>x : (() => void) | (() => number)
+
+// used as type argument
+type handler6 = () => void;
+>handler6 : () => void
+
+var y: Array<handler6>;
+>y : (() => void)[]
+>Array : T[]
+>handler6 : () => void
+
+y[0]();
+>y[0]() : void
+>y[0] : () => void
+>y : (() => void)[]
+>0 : number
+    
diff --git a/tests/baselines/reference/unusedLocalsAndParametersTypeAliases2.errors.txt b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases2.errors.txt
new file mode 100644
index 00000000000..d6abf6f2f3f
--- /dev/null
+++ b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases2.errors.txt
@@ -0,0 +1,20 @@
+tests/cases/compiler/unusedLocalsAndParametersTypeAliases2.ts(3,6): error TS6133: 'handler1' is declared but never used.
+tests/cases/compiler/unusedLocalsAndParametersTypeAliases2.ts(7,10): error TS6133: 'handler2' is declared but never used.
+
+
+==== tests/cases/compiler/unusedLocalsAndParametersTypeAliases2.ts (2 errors) ====
+    
+    // unused
+    type handler1 = () => void;
+         ~~~~~~~~
+!!! error TS6133: 'handler1' is declared but never used.
+    
+    
+    function foo() {
+        type handler2 = () => void;
+             ~~~~~~~~
+!!! error TS6133: 'handler2' is declared but never used.
+        foo();
+    }
+    
+    export {}
\ No newline at end of file
diff --git a/tests/baselines/reference/unusedLocalsAndParametersTypeAliases2.js b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases2.js
new file mode 100644
index 00000000000..7da916370ca
--- /dev/null
+++ b/tests/baselines/reference/unusedLocalsAndParametersTypeAliases2.js
@@ -0,0 +1,18 @@
+//// [unusedLocalsAndParametersTypeAliases2.ts]
+
+// unused
+type handler1 = () => void;
+
+
+function foo() {
+    type handler2 = () => void;
+    foo();
+}
+
+export {}
+
+//// [unusedLocalsAndParametersTypeAliases2.js]
+"use strict";
+function foo() {
+    foo();
+}
diff --git a/tests/cases/compiler/unusedLocalsAndParametersTypeAliases.ts b/tests/cases/compiler/unusedLocalsAndParametersTypeAliases.ts
new file mode 100644
index 00000000000..b94f88845bc
--- /dev/null
+++ b/tests/cases/compiler/unusedLocalsAndParametersTypeAliases.ts
@@ -0,0 +1,29 @@
+//@noUnusedLocals:true
+//@noUnusedParameters:true
+
+// used in a declaration
+type handler1 = () => void;
+export interface I1 {
+    getHandler: handler1;
+}
+
+// exported
+export type handler2 = () => void;
+
+// used in extends clause
+type handler3 = () => void;
+export interface I3<T extends handler3> {
+    getHandler: T;
+}
+
+// used in another type alias declaration
+type handler4 = () => void;
+type handler5 = handler4 | (()=>number);
+var x: handler5;
+x();
+
+// used as type argument
+type handler6 = () => void;
+var y: Array<handler6>;
+y[0]();
+    
\ No newline at end of file
diff --git a/tests/cases/compiler/unusedLocalsAndParametersTypeAliases2.ts b/tests/cases/compiler/unusedLocalsAndParametersTypeAliases2.ts
new file mode 100644
index 00000000000..23d23a5bc18
--- /dev/null
+++ b/tests/cases/compiler/unusedLocalsAndParametersTypeAliases2.ts
@@ -0,0 +1,13 @@
+//@noUnusedLocals:true
+//@noUnusedParameters:true
+
+// unused
+type handler1 = () => void;
+
+
+function foo() {
+    type handler2 = () => void;
+    foo();
+}
+
+export {}
\ No newline at end of file