diff --git a/package.json b/package.json
index ebed1794b..d6ed3eeec 100755
--- a/package.json
+++ b/package.json
@@ -40,7 +40,7 @@
     "vscode-languageserver-types": "^3.16.0",
     "vscode-nls": "^5.0.0",
     "vscode-uri": "^3.0.2",
-    "yaml": "2.0.0-8"
+    "yaml": "2.0.0-10"
   },
   "devDependencies": {
     "@types/chai": "^4.2.12",
diff --git a/src/languageserver/handlers/validationHandlers.ts b/src/languageserver/handlers/validationHandlers.ts
index 6621c6364..2de0030e8 100644
--- a/src/languageserver/handlers/validationHandlers.ts
+++ b/src/languageserver/handlers/validationHandlers.ts
@@ -53,9 +53,12 @@ export class ValidationHandler {
       .doValidation(textDocument, isKubernetesAssociatedDocument(textDocument, this.yamlSettings.specificValidatorPaths))
       .then((diagnosticResults) => {
         const diagnostics = [];
-        for (const diagnosticItem in diagnosticResults) {
-          diagnosticResults[diagnosticItem].severity = 1; //Convert all warnings to errors
-          diagnostics.push(diagnosticResults[diagnosticItem]);
+        for (const diagnosticItem of diagnosticResults) {
+          // Convert all warnings to errors
+          if (diagnosticItem.severity === 2) {
+            diagnosticItem.severity = 1;
+          }
+          diagnostics.push(diagnosticItem);
         }
 
         const removeDuplicatesDiagnostics = removeDuplicatesObj(diagnostics);
diff --git a/src/languageservice/jsonASTTypes.ts b/src/languageservice/jsonASTTypes.ts
index a82a01bcf..fa9bb8169 100644
--- a/src/languageservice/jsonASTTypes.ts
+++ b/src/languageservice/jsonASTTypes.ts
@@ -3,7 +3,9 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { Node } from 'yaml';
+import { Node, Pair } from 'yaml';
+
+export type YamlNode = Node | Pair;
 
 export type ASTNode =
   | ObjectASTNode
@@ -21,7 +23,7 @@ export interface BaseASTNode {
   readonly length: number;
   readonly children?: ASTNode[];
   readonly value?: string | boolean | number | null;
-  readonly internalNode: Node;
+  readonly internalNode: YamlNode;
   location: string;
   getNodeFromOffsetEndInclusive(offset: number): ASTNode;
 }
diff --git a/src/languageservice/parser/ast-converter.ts b/src/languageservice/parser/ast-converter.ts
index e95e513b4..6a0f6c610 100644
--- a/src/languageservice/parser/ast-converter.ts
+++ b/src/languageservice/parser/ast-converter.ts
@@ -19,7 +19,7 @@ import {
   Document,
   LineCounter,
 } from 'yaml';
-import { ASTNode } from '../jsonASTTypes';
+import { ASTNode, YamlNode } from '../jsonASTTypes';
 import {
   NullASTNodeImpl,
   PropertyASTNodeImpl,
@@ -35,7 +35,7 @@ type NodeRange = [number, number, number];
 const maxRefCount = 1000;
 let refDepth = 0;
 
-export function convertAST(parent: ASTNode, node: Node, doc: Document, lineCounter: LineCounter): ASTNode {
+export function convertAST(parent: ASTNode, node: YamlNode, doc: Document, lineCounter: LineCounter): ASTNode {
   if (!parent) {
     // first invocation
     refDepth = 0;
diff --git a/src/languageservice/parser/jsonParser07.ts b/src/languageservice/parser/jsonParser07.ts
index a1175b6d7..be9427c1c 100644
--- a/src/languageservice/parser/jsonParser07.ts
+++ b/src/languageservice/parser/jsonParser07.ts
@@ -16,6 +16,7 @@ import {
   StringASTNode,
   NullASTNode,
   PropertyASTNode,
+  YamlNode,
 } from '../jsonASTTypes';
 import { ErrorCode } from 'vscode-json-languageservice';
 import * as nls from 'vscode-nls';
@@ -24,7 +25,7 @@ import { DiagnosticSeverity, Range } from 'vscode-languageserver-types';
 import { TextDocument } from 'vscode-languageserver-textdocument';
 import { Diagnostic } from 'vscode-languageserver';
 import { isArrayEqual } from '../utils/arrUtils';
-import { Node } from 'yaml';
+import { Node, Pair } from 'yaml';
 import { safeCreateUnicodeRegExp } from '../utils/strings';
 
 const localize = nls.loadMessageBundle();
@@ -89,9 +90,9 @@ export abstract class ASTNodeImpl {
   public length: number;
   public readonly parent: ASTNode;
   public location: string;
-  readonly internalNode: Node;
+  readonly internalNode: YamlNode;
 
-  constructor(parent: ASTNode, internalNode: Node, offset: number, length?: number) {
+  constructor(parent: ASTNode, internalNode: YamlNode, offset: number, length?: number) {
     this.offset = offset;
     this.length = length;
     this.parent = parent;
@@ -204,7 +205,7 @@ export class PropertyASTNodeImpl extends ASTNodeImpl implements PropertyASTNode
   public valueNode: ASTNode;
   public colonOffset: number;
 
-  constructor(parent: ObjectASTNode, internalNode: Node, offset: number, length?: number) {
+  constructor(parent: ObjectASTNode, internalNode: Pair, offset: number, length?: number) {
     super(parent, internalNode, offset, length);
     this.colonOffset = -1;
   }
diff --git a/src/languageservice/parser/yaml-documents.ts b/src/languageservice/parser/yaml-documents.ts
index 588d90542..1d8ccfdc2 100644
--- a/src/languageservice/parser/yaml-documents.ts
+++ b/src/languageservice/parser/yaml-documents.ts
@@ -6,7 +6,7 @@
 import { TextDocument } from 'vscode-languageserver-textdocument';
 import { JSONDocument } from './jsonParser07';
 import { Document, isNode, isPair, isScalar, LineCounter, visit, YAMLError } from 'yaml';
-import { ASTNode } from '../jsonASTTypes';
+import { ASTNode, YamlNode } from '../jsonASTTypes';
 import { defaultOptions, parse as parseYAML, ParserOptions } from './yamlParser07';
 import { ErrorCode } from 'vscode-json-languageservice';
 import { Node } from 'yaml';
@@ -87,7 +87,7 @@ export class SingleYAMLDocument extends JSONDocument {
     return matchingSchemas;
   }
 
-  getNodeFromPosition(positionOffset: number, textBuffer: TextBuffer): [Node | undefined, boolean] {
+  getNodeFromPosition(positionOffset: number, textBuffer: TextBuffer): [YamlNode | undefined, boolean] {
     const position = textBuffer.getPosition(positionOffset);
     const lineContent = textBuffer.getLineContent(position.line);
     if (lineContent.trim().length === 0) {
@@ -114,10 +114,10 @@ export class SingleYAMLDocument extends JSONDocument {
     return [closestNode, false];
   }
 
-  findClosestNode(offset: number, textBuffer: TextBuffer): Node {
+  findClosestNode(offset: number, textBuffer: TextBuffer): YamlNode {
     let offsetDiff = this.internalDocument.range[2];
     let maxOffset = this.internalDocument.range[0];
-    let closestNode: Node;
+    let closestNode: YamlNode;
     visit(this.internalDocument, (key, node: Node) => {
       if (!node) {
         return;
@@ -149,11 +149,11 @@ export class SingleYAMLDocument extends JSONDocument {
     return closestNode;
   }
 
-  private getProperParentByIndentation(indentation: number, node: Node, textBuffer: TextBuffer): Node {
+  private getProperParentByIndentation(indentation: number, node: YamlNode, textBuffer: TextBuffer): YamlNode {
     if (!node) {
       return this.internalDocument.contents as Node;
     }
-    if (node.range) {
+    if (isNode(node) && node.range) {
       const position = textBuffer.getPosition(node.range[0]);
       if (position.character > indentation && position.character > 0) {
         const parent = this.getParent(node);
@@ -175,7 +175,7 @@ export class SingleYAMLDocument extends JSONDocument {
     return node;
   }
 
-  getParent(node: Node): Node | undefined {
+  getParent(node: YamlNode): YamlNode | undefined {
     return getParent(this.internalDocument, node);
   }
 }
diff --git a/src/languageservice/parser/yamlParser07.ts b/src/languageservice/parser/yamlParser07.ts
index 3424ea34a..19a2680b8 100644
--- a/src/languageservice/parser/yamlParser07.ts
+++ b/src/languageservice/parser/yamlParser07.ts
@@ -30,6 +30,7 @@ export function parse(text: string, parserOptions: ParserOptions = defaultOption
     strict: false,
     customTags: getCustomTags(parserOptions.customTags),
     version: parserOptions.yamlVersion,
+    keepSourceTokens: true,
   };
   const composer = new Composer(options);
   const lineCounter = new LineCounter();
diff --git a/src/languageservice/services/validation/types.ts b/src/languageservice/services/validation/types.ts
new file mode 100644
index 000000000..c31bcfaad
--- /dev/null
+++ b/src/languageservice/services/validation/types.ts
@@ -0,0 +1,12 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Red Hat. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { TextDocument } from 'vscode-languageserver-textdocument';
+import { Diagnostic } from 'vscode-languageserver-types';
+import { SingleYAMLDocument } from '../../parser/yaml-documents';
+
+export interface AdditionalValidator {
+  validate(document: TextDocument, yamlDoc: SingleYAMLDocument): Diagnostic[];
+}
diff --git a/src/languageservice/services/validation/unused-anchors.ts b/src/languageservice/services/validation/unused-anchors.ts
new file mode 100644
index 000000000..62d42680f
--- /dev/null
+++ b/src/languageservice/services/validation/unused-anchors.ts
@@ -0,0 +1,82 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Red Hat. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { TextDocument } from 'vscode-languageserver-textdocument';
+import { Diagnostic, DiagnosticSeverity, DiagnosticTag, Range } from 'vscode-languageserver-types';
+import { isAlias, isCollection, isNode, isScalar, Node, Scalar, visit, YAMLMap, YAMLSeq, CST, Pair } from 'yaml';
+import { YamlNode } from '../../jsonASTTypes';
+import { SingleYAMLDocument } from '../../parser/yaml-documents';
+import { AdditionalValidator } from './types';
+import { isCollectionItem } from '../../../languageservice/utils/astUtils';
+
+export class UnusedAnchorsValidator implements AdditionalValidator {
+  validate(document: TextDocument, yamlDoc: SingleYAMLDocument): Diagnostic[] {
+    const result = [];
+    const anchors = new Set<Scalar | YAMLMap | YAMLSeq>();
+    const usedAnchors = new Set<Node>();
+    const anchorParent = new Map<Scalar | YAMLMap | YAMLSeq, Node | Pair>();
+
+    visit(yamlDoc.internalDocument, (key, node, path) => {
+      if (!isNode(node)) {
+        return;
+      }
+      if ((isCollection(node) || isScalar(node)) && node.anchor) {
+        anchors.add(node);
+        anchorParent.set(node, path[path.length - 1] as Node);
+      }
+      if (isAlias(node)) {
+        usedAnchors.add(node.resolve(yamlDoc.internalDocument));
+      }
+    });
+
+    for (const anchor of anchors) {
+      if (!usedAnchors.has(anchor)) {
+        const aToken = this.getAnchorNode(anchorParent.get(anchor));
+        if (aToken) {
+          const range = Range.create(
+            document.positionAt(aToken.offset),
+            document.positionAt(aToken.offset + aToken.source.length)
+          );
+          const warningDiagnostic = Diagnostic.create(range, `Unused anchor "${aToken.source}"`, DiagnosticSeverity.Hint, 0);
+          warningDiagnostic.tags = [DiagnosticTag.Unnecessary];
+          warningDiagnostic.data = { name: aToken.source };
+          result.push(warningDiagnostic);
+        }
+      }
+    }
+
+    return result;
+  }
+  private getAnchorNode(parentNode: YamlNode): CST.SourceToken | undefined {
+    if (parentNode && parentNode.srcToken) {
+      const token = parentNode.srcToken;
+      if (isCollectionItem(token)) {
+        return getAnchorFromCollectionItem(token);
+      } else if (CST.isCollection(token)) {
+        for (const t of token.items) {
+          const anchor = getAnchorFromCollectionItem(t);
+          if (anchor) {
+            return anchor;
+          }
+        }
+      }
+    }
+    return undefined;
+  }
+}
+function getAnchorFromCollectionItem(token: CST.CollectionItem): CST.SourceToken | undefined {
+  for (const t of token.start) {
+    if (t.type === 'anchor') {
+      return t;
+    }
+  }
+  if (token.sep && Array.isArray(token.sep)) {
+    for (const t of token.sep) {
+      if (t.type === 'anchor') {
+        return t;
+      }
+    }
+  }
+}
diff --git a/src/languageservice/services/yamlCodeActions.ts b/src/languageservice/services/yamlCodeActions.ts
index 61c85d2d4..cc7118156 100644
--- a/src/languageservice/services/yamlCodeActions.ts
+++ b/src/languageservice/services/yamlCodeActions.ts
@@ -20,6 +20,8 @@ import { YamlCommands } from '../../commands';
 import * as path from 'path';
 import { TextBuffer } from '../utils/textBuffer';
 import { LanguageSettings } from '../yamlLanguageService';
+import { YAML_SOURCE } from '../parser/jsonParser07';
+import { getFirstNonWhitespaceCharacterAfterOffset } from '../utils/strings';
 
 interface YamlDiagnosticData {
   schemaUri: string[];
@@ -43,6 +45,7 @@ export class YamlCodeActions {
     result.push(...this.getConvertToBooleanActions(params.context.diagnostics, document));
     result.push(...this.getJumpToSchemaActions(params.context.diagnostics));
     result.push(...this.getTabToSpaceConverting(params.context.diagnostics, document));
+    result.push(...this.getUnusedAnchorsDelete(params.context.diagnostics, document));
 
     return result;
   }
@@ -163,6 +166,29 @@ export class YamlCodeActions {
 
     return result;
   }
+
+  private getUnusedAnchorsDelete(diagnostics: Diagnostic[], document: TextDocument): CodeAction[] {
+    const result = [];
+    const buffer = new TextBuffer(document);
+    for (const diag of diagnostics) {
+      if (diag.message.startsWith('Unused anchor') && diag.source === YAML_SOURCE) {
+        const { name } = diag.data as { name: string };
+        const range = Range.create(diag.range.start, diag.range.end);
+        const lineContent = buffer.getLineContent(range.end.line);
+        const lastWhitespaceChar = getFirstNonWhitespaceCharacterAfterOffset(lineContent, range.end.character);
+        range.end.character = lastWhitespaceChar;
+        const action = CodeAction.create(
+          `Delete unused anchor: ${name}`,
+          createWorkspaceEdit(document.uri, [TextEdit.del(range)]),
+          CodeActionKind.QuickFix
+        );
+        action.diagnostics = [diag];
+        result.push(action);
+      }
+    }
+    return result;
+  }
+
   private getConvertToBooleanActions(diagnostics: Diagnostic[], document: TextDocument): CodeAction[] {
     const results: CodeAction[] = [];
     for (const diagnostic of diagnostics) {
diff --git a/src/languageservice/services/yamlCompletion.ts b/src/languageservice/services/yamlCompletion.ts
index 1c0246c56..3a638c309 100644
--- a/src/languageservice/services/yamlCompletion.ts
+++ b/src/languageservice/services/yamlCompletion.ts
@@ -36,6 +36,7 @@ import { isInComment, isMapContainsEmptyPair } from '../utils/astUtils';
 import { indexOf } from '../utils/astUtils';
 import { isModeline } from './modelineUtil';
 import { getSchemaTypeName } from '../utils/schemaUtils';
+import { YamlNode } from '../jsonASTTypes';
 
 const localize = nls.loadMessageBundle();
 
@@ -222,7 +223,7 @@ export class YamlCompletion {
         return result;
       }
 
-      let currentProperty: Node = null;
+      let currentProperty: YamlNode = null;
 
       if (!node) {
         if (!currentDoc.internalDocument.contents || isScalar(currentDoc.internalDocument.contents)) {
@@ -411,7 +412,7 @@ export class YamlCompletion {
     schema: ResolvedSchema,
     doc: SingleYAMLDocument,
     node: YAMLMap,
-    originalNode: Node,
+    originalNode: YamlNode,
     separatorAfter: string,
     collector: CompletionsCollector,
     textBuffer: TextBuffer,
@@ -568,7 +569,7 @@ export class YamlCompletion {
   private getValueCompletions(
     schema: ResolvedSchema,
     doc: SingleYAMLDocument,
-    node: Node,
+    node: YamlNode,
     offset: number,
     document: TextDocument,
     collector: CompletionsCollector,
diff --git a/src/languageservice/services/yamlValidation.ts b/src/languageservice/services/yamlValidation.ts
index 262e364f6..51e86b0b5 100644
--- a/src/languageservice/services/yamlValidation.ts
+++ b/src/languageservice/services/yamlValidation.ts
@@ -17,6 +17,8 @@ import { YAML_SOURCE } from '../parser/jsonParser07';
 import { TextBuffer } from '../utils/textBuffer';
 import { yamlDocumentsCache } from '../parser/yaml-documents';
 import { convertErrorToTelemetryMsg } from '../utils/objects';
+import { AdditionalValidator } from './validation/types';
+import { UnusedAnchorsValidator } from './validation/unused-anchors';
 
 /**
  * Convert a YAMLDocDiagnostic to a language server Diagnostic
@@ -41,12 +43,14 @@ export class YAMLValidation {
   private jsonValidation;
   private disableAdditionalProperties: boolean;
   private yamlVersion: YamlVersion;
+  private additionalValidation: AdditionalValidation;
 
   private MATCHES_MULTIPLE = 'Matches multiple schemas when only one must validate.';
 
-  public constructor(schemaService: YAMLSchemaService) {
+  constructor(schemaService: YAMLSchemaService) {
     this.validationEnabled = true;
     this.jsonValidation = new JSONValidation(schemaService, Promise);
+    this.additionalValidation = new AdditionalValidation();
   }
 
   public configure(settings: LanguageSettings): void {
@@ -89,6 +93,7 @@ export class YAMLValidation {
         }
 
         validationResult.push(...validation);
+        validationResult.push(...this.additionalValidation.validate(textDocument, currentYAMLDoc));
         index++;
       }
     } catch (err) {
@@ -138,3 +143,18 @@ export class YAMLValidation {
     return duplicateMessagesRemoved;
   }
 }
+
+class AdditionalValidation {
+  private validators: AdditionalValidator[] = [];
+  constructor() {
+    this.validators.push(new UnusedAnchorsValidator());
+  }
+  validate(document: TextDocument, yarnDoc: SingleYAMLDocument): Diagnostic[] {
+    const result = [];
+
+    for (const validator of this.validators) {
+      result.push(...validator.validate(document, yarnDoc));
+    }
+    return result;
+  }
+}
diff --git a/src/languageservice/utils/astUtils.ts b/src/languageservice/utils/astUtils.ts
index 62d943c56..0c5778cdd 100644
--- a/src/languageservice/utils/astUtils.ts
+++ b/src/languageservice/utils/astUtils.ts
@@ -6,10 +6,11 @@
 import { Document, isDocument, isScalar, Node, visit, YAMLMap, YAMLSeq } from 'yaml';
 import { CollectionItem, SourceToken, Token } from 'yaml/dist/parse/cst';
 import { VisitPath } from 'yaml/dist/parse/cst-visit';
+import { YamlNode } from '../jsonASTTypes';
 
 type Visitor = (item: SourceToken, path: VisitPath) => number | symbol | Visitor | void;
 
-export function getParent(doc: Document, nodeToFind: Node): Node | undefined {
+export function getParent(doc: Document, nodeToFind: YamlNode): YamlNode | undefined {
   let parentNode: Node;
   visit(doc, (_, node: Node, path) => {
     if (node === nodeToFind) {
@@ -37,7 +38,7 @@ export function isMapContainsEmptyPair(map: YAMLMap): boolean {
   return false;
 }
 
-export function indexOf(seq: YAMLSeq, item: Node): number | undefined {
+export function indexOf(seq: YAMLSeq, item: YamlNode): number | undefined {
   for (const [i, obj] of seq.items.entries()) {
     if (item === obj) {
       return i;
@@ -79,7 +80,7 @@ export function isInComment(tokens: Token[], offset: number): boolean {
   return inComment;
 }
 
-function isCollectionItem(token: unknown): token is CollectionItem {
+export function isCollectionItem(token: unknown): token is CollectionItem {
   return token['start'] !== undefined;
 }
 
diff --git a/src/languageservice/utils/strings.ts b/src/languageservice/utils/strings.ts
index 2ad3ecaa0..726b260da 100644
--- a/src/languageservice/utils/strings.ts
+++ b/src/languageservice/utils/strings.ts
@@ -75,3 +75,16 @@ export function safeCreateUnicodeRegExp(pattern: string): RegExp {
     return new RegExp(pattern);
   }
 }
+
+export function getFirstNonWhitespaceCharacterAfterOffset(str: string, offset: number): number {
+  offset++;
+  for (let i = offset; i < str.length; i++) {
+    const char = str.charAt(i);
+    if (char === ' ' || char === '\t') {
+      offset++;
+    } else {
+      return offset;
+    }
+  }
+  return offset;
+}
diff --git a/test/utils/verifyError.ts b/test/utils/verifyError.ts
index d96310e43..191a1a634 100644
--- a/test/utils/verifyError.ts
+++ b/test/utils/verifyError.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { DocumentSymbol, SymbolKind, InsertTextFormat, Range } from 'vscode-languageserver-types';
+import { DocumentSymbol, SymbolKind, InsertTextFormat, Range, DiagnosticTag } from 'vscode-languageserver-types';
 import { CompletionItem, CompletionItemKind, SymbolInformation, Diagnostic, DiagnosticSeverity } from 'vscode-languageserver';
 import { ErrorCode } from 'vscode-json-languageservice';
 
@@ -35,6 +35,28 @@ export function createDiagnosticWithData(
   return diagnostic;
 }
 
+export function createUnusedAnchorDiagnostic(
+  message: string,
+  name: string,
+  startLine: number,
+  startCharacter: number,
+  endLine: number,
+  endCharacter: number
+): Diagnostic {
+  const diagnostic = createExpectedError(
+    message,
+    startLine,
+    startCharacter,
+    endLine,
+    endCharacter,
+    DiagnosticSeverity.Hint,
+    'YAML'
+  );
+  diagnostic.tags = [DiagnosticTag.Unnecessary];
+  diagnostic.data = { name };
+  return diagnostic;
+}
+
 export function createExpectedSymbolInformation(
   name: string,
   kind: SymbolKind,
diff --git a/test/yamlCodeActions.test.ts b/test/yamlCodeActions.test.ts
index 8ca6b15e6..9d2b71453 100644
--- a/test/yamlCodeActions.test.ts
+++ b/test/yamlCodeActions.test.ts
@@ -19,7 +19,7 @@ import {
   WorkspaceEdit,
 } from 'vscode-languageserver';
 import { setupTextDocument, TEST_URI } from './utils/testHelper';
-import { createDiagnosticWithData, createExpectedError } from './utils/verifyError';
+import { createDiagnosticWithData, createExpectedError, createUnusedAnchorDiagnostic } from './utils/verifyError';
 import { YamlCommands } from '../src/commands';
 import { LanguageSettings } from '../src';
 
@@ -154,4 +154,34 @@ describe('CodeActions Tests', () => {
       ]);
     });
   });
+
+  describe('Remove Unused Anchor', () => {
+    it('should generate proper action', () => {
+      const doc = setupTextDocument('foo: &bar bar\n');
+      const diagnostics = [createUnusedAnchorDiagnostic('Unused anchor "&bar"', '&bar', 0, 5, 0, 9)];
+      const params: CodeActionParams = {
+        context: CodeActionContext.create(diagnostics),
+        range: undefined,
+        textDocument: TextDocumentIdentifier.create(TEST_URI),
+      };
+      const actions = new YamlCodeActions(clientCapabilities);
+      const result = actions.getCodeAction(doc, params);
+      expect(result[0].title).to.be.equal('Delete unused anchor: &bar');
+      expect(result[0].edit.changes[TEST_URI]).deep.equal([TextEdit.del(Range.create(0, 5, 0, 10))]);
+    });
+
+    it('should delete all whitespace after unused anchor', () => {
+      const doc = setupTextDocument('foo: &bar   \tbar\n');
+      const diagnostics = [createUnusedAnchorDiagnostic('Unused anchor "&bar"', '&bar', 0, 5, 0, 9)];
+      const params: CodeActionParams = {
+        context: CodeActionContext.create(diagnostics),
+        range: undefined,
+        textDocument: TextDocumentIdentifier.create(TEST_URI),
+      };
+      const actions = new YamlCodeActions(clientCapabilities);
+      const result = actions.getCodeAction(doc, params);
+      expect(result[0].title).to.be.equal('Delete unused anchor: &bar');
+      expect(result[0].edit.changes[TEST_URI]).deep.equal([TextEdit.del(Range.create(0, 5, 0, 13))]);
+    });
+  });
 });
diff --git a/test/yamlValidation.test.ts b/test/yamlValidation.test.ts
index 3cb1bcf8f..c98ff8586 100644
--- a/test/yamlValidation.test.ts
+++ b/test/yamlValidation.test.ts
@@ -8,7 +8,7 @@ import { SettingsState, TextDocumentTestManager } from '../src/yamlSettings';
 import { ServiceSetup } from './utils/serviceSetup';
 import { setupLanguageService, setupSchemaIDTextDocument } from './utils/testHelper';
 import { expect } from 'chai';
-import { createExpectedError } from './utils/verifyError';
+import { createExpectedError, createUnusedAnchorDiagnostic } from './utils/verifyError';
 
 describe('YAML Validation Tests', () => {
   let languageSettingsSetup: ServiceSetup;
@@ -54,4 +54,42 @@ describe('YAML Validation Tests', () => {
       expect(result[0]).deep.equal(createExpectedError('Tabs are not allowed as indentation', 1, 1, 1, 10));
     });
   });
+
+  describe('Unused anchors diagnostics', () => {
+    it('should report unused anchor', async () => {
+      const yaml = 'foo: &bar bar\n';
+      const result = await parseSetup(yaml);
+      expect(result).is.not.empty;
+      expect(result.length).to.be.equal(1);
+      expect(result[0]).deep.equal(createUnusedAnchorDiagnostic('Unused anchor "&bar"', '&bar', 0, 5, 0, 9));
+    });
+
+    it('should not report used anchor', async () => {
+      const yaml = 'foo: &bar bar\nfff: *bar';
+      const result = await parseSetup(yaml);
+      expect(result).is.empty;
+    });
+
+    it('should report unused anchors in array ', async () => {
+      const yaml = `foo: &bar   doe
+aaa: some
+dd: *ba
+some: 
+  &a ss: ss
+&aa ff: 
+  - s
+  - o
+  - &e m
+  - e`;
+      const result = await parseSetup(yaml);
+      expect(result).is.not.empty;
+      expect(result.length).to.be.equal(4);
+      expect(result).to.include.deep.members([
+        createUnusedAnchorDiagnostic('Unused anchor "&bar"', '&bar', 0, 5, 0, 9),
+        createUnusedAnchorDiagnostic('Unused anchor "&a"', '&a', 4, 2, 4, 4),
+        createUnusedAnchorDiagnostic('Unused anchor "&aa"', '&aa', 5, 0, 5, 3),
+        createUnusedAnchorDiagnostic('Unused anchor "&e"', '&e', 8, 4, 8, 6),
+      ]);
+    });
+  });
 });
diff --git a/yarn.lock b/yarn.lock
index f14ba964b..1534d40c6 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2636,10 +2636,10 @@ yallist@^4.0.0:
   resolved "https://registry.yarnpkg.com/yallist/-/yallist-4.0.0.tgz#9bb92790d9c0effec63be73519e11a35019a3a72"
   integrity sha512-3wdGidZyq5PB084XLES5TpOSRA3wjXAlIWMhum2kRcv/41Sn2emQ0dycQW4uZXLejwKvg6EsvbdlVL+FYEct7A==
 
-yaml@2.0.0-8:
-  version "2.0.0-8"
-  resolved "https://registry.yarnpkg.com/yaml/-/yaml-2.0.0-8.tgz#226365f0d804ba7fb8cc2b527a00a7a4a3d8ea5f"
-  integrity sha512-QaYgJZMfWD6fKN/EYMk6w1oLWPCr1xj9QaPSZW5qkDb3y8nGCXhy2Ono+AF4F+CSL/vGcqswcAT0BaS//pgD2A==
+yaml@2.0.0-10:
+  version "2.0.0-10"
+  resolved "https://registry.yarnpkg.com/yaml/-/yaml-2.0.0-10.tgz#d5b59e2d14b8683313a534f2bbc648e211a2753e"
+  integrity sha512-FHV8s5ODFFQXX/enJEU2EkanNl1UDBUz8oa4k5Qo/sR+Iq7VmhCDkRMb0/mjJCNeAWQ31W8WV6PYStDE4d9EIw==
 
 yargs-parser@20.2.4:
   version "20.2.4"