diff --git a/docs/configuration.md b/docs/configuration.md
index ba4a0c8aa..56784d1f6 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -271,7 +271,7 @@ The following table lists the default severity levels for each diagnostic rule w
 | reportSelfClsParameterName                | "none"     | "warning"  | "error"    |
 | reportImplicitStringConcatenation         | "none"     | "none"     | "none"     |
 | reportUndefinedVariable                   | "warning"  | "error"    | "error"    |
-| reportUnboundVariable                     | "warning"  | "error"    | "error"    |
+| reportUnboundVariable                     | "none"     | "error"    | "error"    |
 | reportInvalidStubStatement                | "none"     | "none"     | "error"    |
 | reportUnsupportedDunderAll                | "none"     | "warning"  | "error"    |
 | reportUnusedCallResult                    | "none"     | "none"     | "none"     |
diff --git a/packages/pyright-internal/src/common/configOptions.ts b/packages/pyright-internal/src/common/configOptions.ts
index 5d3770b5c..afbdf6605 100644
--- a/packages/pyright-internal/src/common/configOptions.ts
+++ b/packages/pyright-internal/src/common/configOptions.ts
@@ -369,7 +369,7 @@ export function getOffDiagnosticRuleSet(): DiagnosticRuleSet {
         reportAssertAlwaysTrue: 'none',
         reportSelfClsParameterName: 'none',
         reportImplicitStringConcatenation: 'none',
-        reportUnboundVariable: 'warning',
+        reportUnboundVariable: 'none',
         reportUndefinedVariable: 'warning',
         reportInvalidStubStatement: 'none',
         reportUnsupportedDunderAll: 'none',
diff --git a/packages/pyright-internal/src/tests/samples/forLoops1.py b/packages/pyright-internal/src/tests/samples/forLoop1.py
similarity index 100%
rename from packages/pyright-internal/src/tests/samples/forLoops1.py
rename to packages/pyright-internal/src/tests/samples/forLoop1.py
diff --git a/packages/pyright-internal/src/tests/samples/forLoop2.py b/packages/pyright-internal/src/tests/samples/forLoop2.py
new file mode 100644
index 000000000..d3d7ddb16
--- /dev/null
+++ b/packages/pyright-internal/src/tests/samples/forLoop2.py
@@ -0,0 +1,48 @@
+# This sample tests for/else loops for cases where variables
+# are potentially unbound.
+
+
+# For with no break and no else.
+def func1():
+    for x in []:
+        a = 0
+
+    # This should generate a "potentially unbound" error.
+    print(a)
+
+    # This should generate a "potentially unbound" error.
+    print(x)
+
+
+# For with no break and else.
+def func2():
+    for x in []:
+        a = 0
+    else:
+        b = 0
+
+    # This should generate a "potentially unbound" error.
+    print(a)
+
+    print(b)
+
+    # This should generate a "potentially unbound" error.
+    print(x)
+
+
+# For with break and else.
+def func3():
+    for x in []:
+        a = 0
+        break
+    else:
+        b = 0
+
+    # This should generate a "potentially unbound" error.
+    print(a)
+
+    # This should generate a "potentially unbound" error.
+    print(b)
+
+    # This should generate a "potentially unbound" error.
+    print(x)
diff --git a/packages/pyright-internal/src/tests/typeEvaluator1.test.ts b/packages/pyright-internal/src/tests/typeEvaluator1.test.ts
index 94f254eaa..a9b4e52b9 100644
--- a/packages/pyright-internal/src/tests/typeEvaluator1.test.ts
+++ b/packages/pyright-internal/src/tests/typeEvaluator1.test.ts
@@ -966,12 +966,18 @@ test('Loops6', () => {
     TestUtils.validateResults(analysisResults, 0);
 });
 
-test('ForLoops1', () => {
-    const analysisResults = TestUtils.typeAnalyzeSampleFiles(['forLoops1.py']);
+test('ForLoop1', () => {
+    const analysisResults = TestUtils.typeAnalyzeSampleFiles(['forLoop1.py']);
 
     TestUtils.validateResults(analysisResults, 2);
 });
 
+test('ForLoop2', () => {
+    const analysisResults = TestUtils.typeAnalyzeSampleFiles(['forLoop2.py']);
+
+    TestUtils.validateResults(analysisResults, 7);
+});
+
 test('ListComprehension1', () => {
     const analysisResults = TestUtils.typeAnalyzeSampleFiles(['listComprehension1.py']);