diff --git a/pkg/compiler/function_call_test.go b/pkg/compiler/function_call_test.go
index 60935cbbe..fb118cffd 100644
--- a/pkg/compiler/function_call_test.go
+++ b/pkg/compiler/function_call_test.go
@@ -313,3 +313,14 @@ func TestJumpOptimize(t *testing.T) {
 		require.Equal(t, b[mi.Range.End], byte(opcode.RET))
 	}
 }
+
+func TestFunctionUnusedParameters(t *testing.T) {
+	src := `package foo
+	func add13(a int, _ int, _1 int, _ int) int {
+		return a + _1
+	}
+	func Main() int {
+		return add13(1, 10, 100, 1000)
+	}`
+	eval(t, src, big.NewInt(101))
+}
diff --git a/pkg/compiler/vars.go b/pkg/compiler/vars.go
index a12aa1459..b0b92496c 100644
--- a/pkg/compiler/vars.go
+++ b/pkg/compiler/vars.go
@@ -2,6 +2,7 @@ package compiler
 
 import (
 	"go/ast"
+	"strconv"
 )
 
 type varScope struct {
@@ -70,6 +71,12 @@ func (c *varScope) newVariable(t varType, name string) int {
 	case varLocal:
 		return c.newLocal(name)
 	case varArgument:
+		if name == "_" {
+			// See #2204. This name won't actually be referenced.
+			// This approach simplifies argument allocation and
+			// makes debugging easier.
+			name = "%_" + strconv.FormatUint(uint64(len(c.arguments)), 10)
+		}
 		_, ok := c.arguments[name]
 		if ok {
 			panic("argument is already allocated")