diff --git a/.changeset/undefined-object-block-schema-variables.md b/.changeset/undefined-object-block-schema-variables.md
new file mode 100644
index 000000000..ee2a762e6
--- /dev/null
+++ b/.changeset/undefined-object-block-schema-variables.md
@@ -0,0 +1,5 @@
+---
+'@shopify/theme-check-common': patch
+---
+
+Stop `UndefinedObject` from reporting schema settings used as bare variables in theme blocks. A block file can now use `{{ heading }}` for a `heading` setting without repeating it as a LiquidDoc `@param`.
diff --git a/packages/theme-check-common/src/checks/undefined-object/index.spec.ts b/packages/theme-check-common/src/checks/undefined-object/index.spec.ts
index dbec713f3..0f2ea6ebc 100644
--- a/packages/theme-check-common/src/checks/undefined-object/index.spec.ts
+++ b/packages/theme-check-common/src/checks/undefined-object/index.spec.ts
@@ -466,6 +466,148 @@ describe('Module: UndefinedObject', () => {
     expect(offenses).toMatchObject([{ message: "Unknown object 'content' used." }]);
   });
 
+  describe('block parameters in a theme block file', () => {
+    it('does not report a schema setting used as a bare variable', async () => {
+      const sourceCode = `
+        <h2>{{ heading }}</h2>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toEqual([]);
+    });
+
+    it('does not report a schema setting and a LiquidDoc-only parameter in the same block', async () => {
+      const sourceCode = `
+        {% doc %}
+          @param {string} [eyebrow]
+        {% enddoc %}
+        <p>{{ eyebrow }}</p>
+        <h2>{{ heading }}</h2>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toEqual([]);
+    });
+
+    it('does not report a name declared by both schema and LiquidDoc', async () => {
+      const sourceCode = `
+        {% doc %}
+          @param {string} heading
+        {% enddoc %}
+        <h2>{{ heading }}</h2>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toEqual([]);
+    });
+
+    it('does not report content alongside schema and LiquidDoc variables', async () => {
+      const sourceCode = `
+        {% doc %}
+          @param {string} [eyebrow]
+        {% enddoc %}
+        <p>{{ eyebrow }}</p>
+        <h2>{{ heading }}</h2>
+        <div>{{ content }}</div>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toEqual([]);
+    });
+
+    it('reports an unknown root alongside schema and LiquidDoc variables', async () => {
+      const sourceCode = `
+        {% doc %}
+          @param {string} [eyebrow]
+        {% enddoc %}
+        <p>{{ eyebrow }}</p>
+        <h2>{{ heading }}</h2>
+        <h3>{{ subtitle }}</h3>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toMatchObject([{ message: "Unknown object 'subtitle' used." }]);
+    });
+
+    it('reports names from non-input schema entries and setting types', async () => {
+      const sourceCode = `
+        <div style="background: {{ background }}">
+          {{ layout_heading }}
+          {{ header }}
+          {{ color_background }}
+        </div>
+        ${schema([
+          { type: 'header', id: 'layout_heading', content: 'Layout' },
+          { type: 'color_background', id: 'background', label: 'Background' },
+        ])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toMatchObject([
+        { message: "Unknown object 'layout_heading' used." },
+        { message: "Unknown object 'header' used." },
+        { message: "Unknown object 'color_background' used." },
+      ]);
+    });
+
+    it('keeps LiquidDoc parameters and content defined when the schema is invalid', async () => {
+      const sourceCode = `
+        {% doc %}
+          @param {string} [eyebrow]
+        {% enddoc %}
+        <p>{{ eyebrow }}</p>
+        <div>{{ content }}</div>
+        {% schema %}
+          { "name": "Card", "settings": [
+        {% endschema %}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'blocks/card.liquid');
+
+      expect(offenses).toEqual([]);
+    });
+
+    it('reports schema settings used as bare variables in a section file', async () => {
+      const sourceCode = `
+        <h2>{{ heading }}</h2>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(UndefinedObject, sourceCode, 'sections/hero.liquid');
+
+      expect(offenses).toMatchObject([{ message: "Unknown object 'heading' used." }]);
+    });
+
+    it('reports schema settings used as bare variables in an app block', async () => {
+      const sourceCode = `
+        <h2>{{ heading }}</h2>
+        ${schema([{ type: 'text', id: 'heading', label: 'Heading' }])}
+      `;
+
+      const offenses = await runLiquidCheck(
+        UndefinedObject,
+        sourceCode,
+        'blocks/card.liquid',
+        {},
+        undefined,
+        'app',
+      );
+
+      expect(offenses).toMatchObject([{ message: "Unknown object 'heading' used." }]);
+    });
+  });
+
   it('should not report an offense when a self defined variable is defined with a @param tag', async () => {
     const sourceCode = `
       {% doc %}
@@ -519,3 +661,7 @@ describe('Module: UndefinedObject', () => {
     expect(offenses).to.be.empty;
   });
 });
+
+function schema(settings: object[]): string {
+  return `{% schema %}${JSON.stringify({ name: 'Card', settings })}{% endschema %}`;
+}
diff --git a/packages/theme-check-common/src/checks/undefined-object/index.ts b/packages/theme-check-common/src/checks/undefined-object/index.ts
index e894a8180..4c04c3cc3 100644
--- a/packages/theme-check-common/src/checks/undefined-object/index.ts
+++ b/packages/theme-check-common/src/checks/undefined-object/index.ts
@@ -14,7 +14,16 @@ import {
   Position,
 } from '@shopify/liquid-html-parser';
 import { BLOCK_CONTENT_PARAMETER } from '../../block-parameters';
-import { LiquidCheckDefinition, Mode, Severity, SourceCodeType, ThemeDocset } from '../../types';
+import * as path from '../../path';
+import { isBlock } from '../../to-schema';
+import {
+  Context,
+  LiquidCheckDefinition,
+  Mode,
+  Severity,
+  SourceCodeType,
+  ThemeDocset,
+} from '../../types';
 import { isError, last } from '../../utils';
 import { hasLiquidDoc } from '../../liquid-doc/liquidDoc';
 import { isWithinRawTagThatDoesNotParseItsContents } from '../utils';
@@ -150,6 +159,7 @@ export const UndefinedObject: LiquidCheckDefinition = {
         const objects = await globalObjects(themeDocset, relativePath, context.mode);
 
         objects.forEach((obj) => fileScopedVariables.add(obj.name));
+        (await themeBlockParameterNames(context)).forEach((name) => fileScopedVariables.add(name));
 
         variables.forEach((variable) => {
           if (!variable.name) return;
@@ -194,6 +204,20 @@ function builtInVariables(relativePath: string): string[] {
   return relativePath.startsWith('blocks/') ? [BLOCK_CONTENT_PARAMETER] : [];
 }
 
+/**
+ * A theme block's schema settings and LiquidDoc parameters are also plain
+ * variables in the block file. Returns no names when the block's parameters
+ * cannot be resolved, such as when its schema is invalid.
+ */
+async function themeBlockParameterNames(
+  context: Context<SourceCodeType.LiquidHtml>,
+): Promise<string[]> {
+  if (!isBlock(context.file.uri)) return [];
+
+  const parameters = await context.getBlockParameters(path.basename(context.file.uri, '.liquid'));
+  return [...(parameters?.keys() ?? [])];
+}
+
 const BLOCK_CONTEXTUAL_OBJECTS = ['app', 'section', 'recommendations', 'block'];
 
 function getContextualObjects(relativePath: string, mode: Mode = 'theme'): string[] {