diff --git a/src/Microsoft.CodeAnalysis.Analyzers/CSharp/MetaAnalyzers/CSharpSemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzer.cs b/src/Microsoft.CodeAnalysis.Analyzers/CSharp/MetaAnalyzers/CSharpSemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzer.cs
index ee05499325..8435eb78f1 100644
--- a/src/Microsoft.CodeAnalysis.Analyzers/CSharp/MetaAnalyzers/CSharpSemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzer.cs
+++ b/src/Microsoft.CodeAnalysis.Analyzers/CSharp/MetaAnalyzers/CSharpSemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzer.cs
@@ -51,6 +51,7 @@ public override void Initialize(AnalysisContext context)
                 if (!typeProvider.TryGetOrCreateTypeByMetadataName(WellKnownTypeNames.MicrosoftCodeAnalysisCSharpCSharpExtensions, out var csharpExtensions)
                     || !typeProvider.TryGetOrCreateTypeByMetadataName(WellKnownTypeNames.MicrosoftCodeAnalysisModelExtensions, out var modelExtensions)
                     || !typeProvider.TryGetOrCreateTypeByMetadataName(WellKnownTypeNames.MicrosoftCodeAnalysisCSharpSyntaxBaseFieldDeclarationSyntax, out var baseFieldDeclaration)
+                    || !typeProvider.TryGetOrCreateTypeByMetadataName(WellKnownTypeNames.MicrosoftCodeAnalysisCSharpSyntaxLocalFunctionStatementSyntax, out var localFunctionStatement)
                     || !typeProvider.TryGetOrCreateTypeByMetadataName(WellKnownTypeNames.MicrosoftCodeAnalysisSyntaxNode, out var syntaxNode)
                     || (getDeclaredSymbolMethod = (IMethodSymbol?)modelExtensions.GetMembers(nameof(ModelExtensions.GetDeclaredSymbol)).FirstOrDefault(m => m is IMethodSymbol { Parameters.Length: >= 2 })) is null)
                 {
@@ -62,11 +63,17 @@ public override void Initialize(AnalysisContext context)
                     .Where(m => m.Parameters.Length >= 2)
                     .Select(m => m.Parameters[1].Type);
 
-                context.RegisterOperationAction(ctx => AnalyzeInvocation(ctx, getDeclaredSymbolMethod, allowedTypes, baseFieldDeclaration, syntaxNode), OperationKind.Invocation);
+                context.RegisterOperationAction(ctx => AnalyzeInvocation(ctx, getDeclaredSymbolMethod, allowedTypes, baseFieldDeclaration, localFunctionStatement, syntaxNode), OperationKind.Invocation);
             });
         }
 
-        private static void AnalyzeInvocation(OperationAnalysisContext context, IMethodSymbol getDeclaredSymbolMethod, IEnumerable<ITypeSymbol> allowedTypes, INamedTypeSymbol baseFieldDeclarationType, INamedTypeSymbol syntaxNodeType)
+        private static void AnalyzeInvocation(
+            OperationAnalysisContext context,
+            IMethodSymbol getDeclaredSymbolMethod,
+            IEnumerable<ITypeSymbol> allowedTypes,
+            INamedTypeSymbol baseFieldDeclarationType,
+            INamedTypeSymbol localFunctionStatementType,
+            INamedTypeSymbol syntaxNodeType)
         {
             var invocation = (IInvocationOperation)context.Operation;
             if (SymbolEqualityComparer.Default.Equals(invocation.TargetMethod, getDeclaredSymbolMethod))
@@ -81,7 +88,8 @@ private static void AnalyzeInvocation(OperationAnalysisContext context, IMethodS
                 {
                     context.ReportDiagnostic(invocation.CreateDiagnostic(FieldDiagnosticDescriptor, syntaxNodeDerivingType.Name));
                 }
-                else if (allowedTypes.All(type => !syntaxNodeDerivingType.DerivesFrom(type, baseTypesOnly: true, checkTypeParameterConstraints: false)))
+                else if (allowedTypes.All(type => !syntaxNodeDerivingType.DerivesFrom(type, baseTypesOnly: true, checkTypeParameterConstraints: false)
+                                                  && !syntaxNodeDerivingType.Equals(localFunctionStatementType, SymbolEqualityComparer.Default)))
                 {
                     context.ReportDiagnostic(invocation.CreateDiagnostic(DiagnosticDescriptor, syntaxNodeDerivingType.Name));
                 }
diff --git a/src/Microsoft.CodeAnalysis.Analyzers/UnitTests/MetaAnalyzers/SemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzerTests.cs b/src/Microsoft.CodeAnalysis.Analyzers/UnitTests/MetaAnalyzers/SemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzerTests.cs
index e24cf624dc..9dcc8a53a8 100644
--- a/src/Microsoft.CodeAnalysis.Analyzers/UnitTests/MetaAnalyzers/SemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzerTests.cs
+++ b/src/Microsoft.CodeAnalysis.Analyzers/UnitTests/MetaAnalyzers/SemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzerTests.cs
@@ -3,6 +3,7 @@
 using System.Threading.Tasks;
 using Microsoft.CodeAnalysis.CSharp.Analyzers.MetaAnalyzers;
 using Microsoft.CodeAnalysis.Testing;
+using Test.Utilities;
 using Xunit;
 using VerifyCS = Test.Utilities.CSharpCodeFixVerifier<
     Microsoft.CodeAnalysis.CSharp.Analyzers.MetaAnalyzers.CSharpSemanticModelGetDeclaredSymbolAlwaysReturnsNullAnalyzer,
@@ -97,5 +98,24 @@ public void M(SemanticModel semanticModel) {
 
             return VerifyCS.VerifyAnalyzerAsync(code);
         }
+
+        [Fact, WorkItem(7061, "https://github.com/dotnet/roslyn-analyzers/issues/7061")]
+        public Task LocalFunctionStatement_NoDiagnostic()
+        {
+            const string code = """
+                       using Microsoft.CodeAnalysis;
+                       using Microsoft.CodeAnalysis.CSharp.Syntax;
+
+                       public class Test
+                       {
+                           public void M(SemanticModel semanticModel, LocalFunctionStatementSyntax syntax)
+                           {
+                               var x = semanticModel.GetDeclaredSymbol(syntax);
+                           }
+                       }
+                       """;
+
+            return VerifyCS.VerifyAnalyzerAsync(code);
+        }
     }
 }
\ No newline at end of file
diff --git a/src/Utilities/Compiler/WellKnownTypeNames.cs b/src/Utilities/Compiler/WellKnownTypeNames.cs
index 9adad72b29..d41237b236 100644
--- a/src/Utilities/Compiler/WellKnownTypeNames.cs
+++ b/src/Utilities/Compiler/WellKnownTypeNames.cs
@@ -37,6 +37,7 @@ internal static class WellKnownTypeNames
         public const string MicrosoftCodeAnalysisCSharpCSharpExtensions = "Microsoft.CodeAnalysis.CSharp.CSharpExtensions";
         public const string MicrosoftCodeAnalysisCSharpExtensions = "Microsoft.CodeAnalysis.CSharpExtensions";
         public const string MicrosoftCodeAnalysisCSharpSyntaxBaseFieldDeclarationSyntax = "Microsoft.CodeAnalysis.CSharp.Syntax.BaseFieldDeclarationSyntax";
+        public const string MicrosoftCodeAnalysisCSharpSyntaxLocalFunctionStatementSyntax = "Microsoft.CodeAnalysis.CSharp.Syntax.LocalFunctionStatementSyntax";
         public const string MicrosoftCodeAnalysisDiagnostic = "Microsoft.CodeAnalysis.Diagnostic";
         public const string MicrosoftCodeAnalysisDiagnosticDescriptor = "Microsoft.CodeAnalysis.DiagnosticDescriptor";
         public const string MicrosoftCodeAnalysisDiagnosticsAnalysisContext = "Microsoft.CodeAnalysis.Diagnostics.AnalysisContext";