diff --git a/README.rst b/README.rst
index bde5850..600e96c 100644
--- a/README.rst
+++ b/README.rst
@@ -150,6 +150,9 @@ No exceptions will be suppressed and therefore this context manager is redundant
 N.B. this rule currently does not flag `suppress` calls to avoid potential false
 positives due to similarly named user-defined functions.
 
+**B023**: Functions defined inside a loop must not use variables redefined in
+the loop, because `late-binding closures are a classic gotcha
+<https://docs.python-guide.org/writing/gotchas/#late-binding-closures>`__.
 
 Opinionated warnings
 ~~~~~~~~~~~~~~~~~~~~
diff --git a/bugbear.py b/bugbear.py
index f1dcf9e..5243fbf 100644
--- a/bugbear.py
+++ b/bugbear.py
@@ -198,6 +198,12 @@ def _to_name_str(node):
         return _to_name_str(node.value)
 
 
+def names_from_assignments(node):
+    for name in ast.walk(node):
+        if isinstance(name, ast.Name):
+            yield name.id
+
+
 def _typesafe_issubclass(cls, class_or_tuple):
     try:
         return issubclass(cls, class_or_tuple)
@@ -520,6 +526,44 @@ def check_for_b020(self, node):
                 n = targets.names[name][0]
                 self.errors.append(B020(n.lineno, n.col_offset, vars=(name,)))
 
+    def check_for_b023(self, loop_node):
+        """Check that functions (including lambdas) do not use loop variables.
+
+        https://docs.python-guide.org/writing/gotchas/#late-binding-closures from
+        functions - usually but not always lambdas - defined inside a loop are a
+        classic source of bugs.
+
+        For each use of a variable inside a function defined inside a loop, we
+        emit a warning if that variable is reassigned on each loop iteration
+        (outside the function).  This includes but is not limited to explicit
+        loop variables like the `x` in `for x in range(3):`.
+        """
+        # Because most loops don't contain functions, it's most efficient to
+        # implement this "backwards": first we find all the candidate variable
+        # uses, and then if there are any we check for assignment of those names
+        # inside the loop body.
+        suspicious_variables = []
+        for node in ast.walk(loop_node):
+            if isinstance(node, (ast.AsyncFunctionDef, ast.FunctionDef, ast.Lambda)):
+                argnames = set(names_from_assignments(node.args))
+                for name in ast.walk(node):
+                    if isinstance(name, ast.Name) and name.id not in argnames:
+                        err = B023(name.lineno, name.col_offset, vars=(name.id,))
+                        suspicious_variables.append((name.id, err))
+
+        if suspicious_variables:
+            reassigned_in_loop = set()
+            loop_targets = (ast.For, ast.AsyncFor, ast.comprehension)
+            for _, node in self.walk_function_body(loop_node):
+                if isinstance(node, (ast.Assign)):
+                    reassigned_in_loop.update(names_from_assignments(node.targets))
+                if isinstance(node, loop_targets + (ast.AnnAssign, ast.AugAssign)):
+                    reassigned_in_loop.update(names_from_assignments(node.target))
+
+        for name, err in suspicious_variables:
+            if name in reassigned_in_loop:
+                self.errors.append(err)
+
     def check_for_b904(self, node):
         """Checks `raise` without `from` inside an `except` clause.
 
@@ -1041,6 +1085,15 @@ def visit_Lambda(self, node):
     )
 )
 
+B023 = Error(
+    message=(
+        "B023 Function definition does not bind loop variable {!r}.  "
+        "This means that invoking functions defined inside the loop will "
+        "always use the value of this variable from the last iteration.  See "
+        "https://docs.python-guide.org/writing/gotchas/#late-binding-closures"
+    )
+)
+
 # Warnings disabled by default.
 B901 = Error(
     message=(