diff --git a/CHANGELOG.md b/CHANGELOG.md
index 36d7384..a8477bb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,7 @@
 - Fix issue [#319](https://github.com/intersystems/language-server/issues/319): Outline shows routine labels that don't appear in the first column
 - Fix issue [#320](https://github.com/intersystems/language-server/issues/320): Turn routine existence diagnostics on by default
 - Fix issue [#321](https://github.com/intersystems/language-server/issues/321): Show detailed descriptions for syntax errors
+- Fix issue [#322](https://github.com/intersystems/language-server/issues/322): Add setting to disable undefined variable warning diagnostics
 - Parser changes:
   - DP-430347: Track variables in routine procedure blocks
   - DP-430473: Fix variable tracking with embedded SQL in routine procedure blocks
diff --git a/README.md b/README.md
index 94fd697..9f5fd56 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,7 @@ This is a [LSP](https://microsoft.github.io/language-server-protocol/) compliant
   - Expand short class names to include packages (off by default)
 - Code linting for ObjectScript and UDL that checks for the following:
   - Syntax errors, including for embedded languages.
-  - References to local variables that are undefined.
+  - References to local variables that may be undefined.
   - Classes and routines that don't exist in the database.
   - Invalid UDL Parameter types.
   - Mismatches between declared UDL Parameter types and the assigned value.
diff --git a/package.json b/package.json
index bdb1644..0518c35 100644
--- a/package.json
+++ b/package.json
@@ -229,6 +229,12 @@
           "type": "boolean",
           "default": true,
           "markdownDescription": "Controls whether diagnostics are provided when a [SQL reserved word](https://docs.intersystems.com/irislatest/csp/docbook/DocBook.UI.Page.cls?KEY=RSQL_reservedwords) is used in a class or property name of a persistent class."
+        },
+        "intersystems.language-server.diagnostics.undefinedVariables": {
+          "scope": "resource",
+          "type": "boolean",
+          "default": true,
+          "description": "Controls whether diagnostics are provided when a local variable may be undefined."
         }
       }
     },
diff --git a/server/src/providers/diagnostic.ts b/server/src/providers/diagnostic.ts
index d9167a1..78e583b 100644
--- a/server/src/providers/diagnostic.ts
+++ b/server/src/providers/diagnostic.ts
@@ -276,7 +276,11 @@ export async function onDiagnostics(params: DocumentDiagnosticParams): Promise<D
 					};
 					diagnostics.push(diagnostic);
 				}
-				else if (parsed[i][j].l == ld.cos_langindex && parsed[i][j].s === ld.cos_otw_attrindex) {
+				else if (
+					parsed[i][j].l == ld.cos_langindex &&
+					parsed[i][j].s == ld.cos_otw_attrindex &&
+					settings.diagnostics.undefinedVariables
+				) {
 					// This is an OptionTrackWarning (unset local variable)
 					const varrange = Range.create(Position.create(i,symbolstart),Position.create(i,symbolend));
 					let diagnostic: Diagnostic = {
diff --git a/server/src/utils/types.ts b/server/src/utils/types.ts
index 15beed3..b7bd4b4 100644
--- a/server/src/utils/types.ts
+++ b/server/src/utils/types.ts
@@ -29,7 +29,8 @@ export type LanguageServerConfiguration = {
 		deprecation: boolean,
 		zutil: boolean,
 		suppressSyntaxErrors: ("COS" | "SQL" | "CLS" | "HTML" | "PYTHON" | "XML" | "JAVA" | "JAVASCRIPT" | "CSS")[],
-		sqlReserved: boolean
+		sqlReserved: boolean,
+		undefinedVariables: boolean
 	},
 	signaturehelp: {
 		documentation: boolean