diff --git a/src/EditorFeatures/CSharpTest/CodeActions/ConvertLocalFunctionToMethod/ConvertLocalFunctionToMethodTests.cs b/src/EditorFeatures/CSharpTest/CodeActions/ConvertLocalFunctionToMethod/ConvertLocalFunctionToMethodTests.cs
index 86ca5bec30ba8..11700e987a376 100644
--- a/src/EditorFeatures/CSharpTest/CodeActions/ConvertLocalFunctionToMethod/ConvertLocalFunctionToMethodTests.cs
+++ b/src/EditorFeatures/CSharpTest/CodeActions/ConvertLocalFunctionToMethod/ConvertLocalFunctionToMethodTests.cs
@@ -821,6 +821,102 @@ C LocalFunction(C c)
             return null;
         }
     }
+}");
+        }
+
+        [Fact, Trait(Traits.Feature, Traits.Features.CodeActionsConvertLocalFunctionToMethod)]
+        [WorkItem(32976, "https://github.com/dotnet/roslyn/issues/32976")]
+        public async Task TestUnsafeLocalFunction()
+        {
+            await TestInRegularAndScriptAsync(
+@"class C
+{
+    public unsafe void UnsafeFunction()
+    {
+        byte b = 1;
+        [|unsafe byte* GetPtr(byte* bytePt)
+        {
+            return bytePt;
+        }|]
+        var aReference = GetPtr(&b);
+    }
+}",
+@"class C
+{
+    public unsafe void UnsafeFunction()
+    {
+        byte b = 1;
+        var aReference = GetPtr(&b);
+    }
+
+    private static unsafe byte* GetPtr(byte* bytePt)
+    {
+        return bytePt;
+    }
+}");
+        }
+
+        [Fact, Trait(Traits.Feature, Traits.Features.CodeActionsConvertLocalFunctionToMethod)]
+        [WorkItem(32976, "https://github.com/dotnet/roslyn/issues/32976")]
+        public async Task TestUnsafeLocalFunctionInUnsafeMethod()
+        {
+            await TestInRegularAndScriptAsync(
+@"class C
+{
+    public unsafe void UnsafeFunction()
+    {
+        byte b = 1;
+        [|byte* GetPtr(byte* bytePt)
+        {
+            return bytePt;
+        }|]
+        var aReference = GetPtr(&b);
+    }
+}",
+@"class C
+{
+    public unsafe void UnsafeFunction()
+    {
+        byte b = 1;
+        var aReference = GetPtr(&b);
+    }
+
+    private static unsafe byte* GetPtr(byte* bytePt)
+    {
+        return bytePt;
+    }
+}");
+        }
+
+        [Fact, Trait(Traits.Feature, Traits.Features.CodeActionsConvertLocalFunctionToMethod)]
+        [WorkItem(32976, "https://github.com/dotnet/roslyn/issues/32976")]
+        public async Task TestLocalFunctionInUnsafeMethod()
+        {
+            await TestInRegularAndScriptAsync(
+@"class C
+{
+    public unsafe void UnsafeFunction()
+    {
+        byte b = 1;
+        [|byte GetPtr(byte bytePt)
+        {
+            return bytePt;
+        }|]
+        var aReference = GetPtr(b);
+    }
+}",
+@"class C
+{
+    public unsafe void UnsafeFunction()
+    {
+        byte b = 1;
+        var aReference = GetPtr(b);
+    }
+
+    private static byte GetPtr(byte bytePt)
+    {
+        return bytePt;
+    }
 }");
         }
     }
diff --git a/src/Features/CSharp/Portable/CodeRefactorings/ConvertLocalFunctionToMethod/CSharpConvertLocalFunctionToMethodCodeRefactoringProvider.cs b/src/Features/CSharp/Portable/CodeRefactorings/ConvertLocalFunctionToMethod/CSharpConvertLocalFunctionToMethodCodeRefactoringProvider.cs
index dad44de950eed..56a2b494bbedf 100644
--- a/src/Features/CSharp/Portable/CodeRefactorings/ConvertLocalFunctionToMethod/CSharpConvertLocalFunctionToMethodCodeRefactoringProvider.cs
+++ b/src/Features/CSharp/Portable/CodeRefactorings/ConvertLocalFunctionToMethod/CSharpConvertLocalFunctionToMethodCodeRefactoringProvider.cs
@@ -107,13 +107,18 @@ private static async Task<Document> UpdateDocumentAsync(
             var containerSymbol = semanticModel.GetDeclaredSymbol(container, cancellationToken);
             var isStatic = containerSymbol.IsStatic || captures.All(capture => !capture.IsThisParameter());
 
+            // GetSymbolModifiers actually checks if the local function needs to be unsafe, not whether
+            // it is declared as such, so this check we don't need to worry about whether the containing method
+            // is unsafe, this will just work regardless.
+            var needsUnsafe = declaredSymbol.GetSymbolModifiers().IsUnsafe;
+
             var methodName = GenerateUniqueMethodName(declaredSymbol);
             var parameters = declaredSymbol.Parameters;
             var methodSymbol = CodeGenerationSymbolFactory.CreateMethodSymbol(
                 containingType: declaredSymbol.ContainingType,
                 attributes: default,
                 accessibility: Accessibility.Private,
-                modifiers: new DeclarationModifiers(isStatic, isAsync: declaredSymbol.IsAsync),
+                modifiers: new DeclarationModifiers(isStatic, isAsync: declaredSymbol.IsAsync, isUnsafe: needsUnsafe),
                 returnType: declaredSymbol.ReturnType,
                 refKind: default,
                 explicitInterfaceImplementations: default,