diff --git a/docs/rules/no-shadow-restricted-names.md b/docs/rules/no-shadow-restricted-names.md
index 0624a82aa14..9dfc0371906 100644
--- a/docs/rules/no-shadow-restricted-names.md
+++ b/docs/rules/no-shadow-restricted-names.md
@@ -19,7 +19,7 @@ function NaN(){}
 
 !function(Infinity){};
 
-var undefined;
+var undefined = 5;
 
 try {} catch(eval){}
 ```
@@ -32,6 +32,9 @@ Examples of **correct** code for this rule:
 var Object;
 
 function f(a, b){}
+
+// Exception: `undefined` may be shadowed if the variable is never assigned a value.
+var undefined;
 ```
 
 ## Further Reading
diff --git a/lib/rules/no-shadow-restricted-names.js b/lib/rules/no-shadow-restricted-names.js
index 9bdd5086804..f09f3767da4 100644
--- a/lib/rules/no-shadow-restricted-names.js
+++ b/lib/rules/no-shadow-restricted-names.js
@@ -4,6 +4,19 @@
  */
 "use strict";
 
+/**
+ * Determines if a variable safely shadows undefined.
+ * This is the case when a variable named `undefined` is never assigned to a value (i.e. it always shares the same value
+ * as the global).
+ * @param {eslintScope.Variable} variable The variable to check
+ * @returns {boolean} true if this variable safely shadows `undefined`
+ */
+function safelyShadowsUndefined(variable) {
+    return variable.name === "undefined" &&
+        variable.references.every(ref => !ref.isWrite()) &&
+        variable.defs.every(def => def.node.type === "VariableDeclarator" && def.node.init === null);
+}
+
 //------------------------------------------------------------------------------
 // Rule Definition
 //------------------------------------------------------------------------------
@@ -24,12 +37,13 @@ module.exports = {
 
     create(context) {
 
-        const RESTRICTED = ["undefined", "NaN", "Infinity", "arguments", "eval"];
+
+        const RESTRICTED = new Set(["undefined", "NaN", "Infinity", "arguments", "eval"]);
 
         return {
             "VariableDeclaration, :function, CatchClause"(node) {
                 for (const variable of context.getDeclaredVariables(node)) {
-                    if (variable.defs.length > 0 && RESTRICTED.includes(variable.name)) {
+                    if (variable.defs.length > 0 && RESTRICTED.has(variable.name) && !safelyShadowsUndefined(variable)) {
                         context.report({
                             node: variable.defs[0].name,
                             message: "Shadowing of global property '{{idName}}'.",
diff --git a/tests/lib/rules/no-shadow-restricted-names.js b/tests/lib/rules/no-shadow-restricted-names.js
index 3c014a70f5a..cfc40a82cfd 100644
--- a/tests/lib/rules/no-shadow-restricted-names.js
+++ b/tests/lib/rules/no-shadow-restricted-names.js
@@ -24,6 +24,13 @@ ruleTester.run("no-shadow-restricted-names", rule, {
         {
             code: "try {} catch {}",
             parserOptions: { ecmaVersion: 2019 }
+        },
+        "var undefined;",
+        "var undefined; doSomething(undefined);",
+        "var undefined; var undefined;",
+        {
+            code: "let undefined",
+            parserOptions: { ecmaVersion: 2015 }
         }
     ],
     invalid: [
@@ -39,13 +46,12 @@ ruleTester.run("no-shadow-restricted-names", rule, {
             ]
         },
         {
-            code: "function undefined(undefined) { var undefined; !function undefined(undefined) { try {} catch(undefined) {} }; }",
+            code: "function undefined(undefined) { !function undefined(undefined) { try {} catch(undefined) {} }; }",
             errors: [
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" },
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" },
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" },
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" },
-                { message: "Shadowing of global property 'undefined'.", type: "Identifier" },
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" }
             ]
         },
@@ -110,6 +116,12 @@ ruleTester.run("no-shadow-restricted-names", rule, {
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" },
                 { message: "Shadowing of global property 'undefined'.", type: "Identifier" }
             ]
+        },
+        {
+            code: "var undefined; undefined = 5;",
+            errors: [
+                { message: "Shadowing of global property 'undefined'.", type: "Identifier" }
+            ]
         }
     ]
 });