diff --git a/docs/commands/mftf.md b/docs/commands/mftf.md
index cf1260b6a..b2c36dae4 100644
--- a/docs/commands/mftf.md
+++ b/docs/commands/mftf.md
@@ -491,11 +491,18 @@ To run specific static check scripts
 ```bash
 vendor/bin/mftf static-checks testDependencies
 ```
+```bash
+vendor/bin/mftf static-checks actionGroupArguments
+```
+```bash
+vendor/bin/mftf static-checks testDependencies actionGroupArguments
+```
 
 #### Existing static checks
 
 * Test Dependency: Checks that test dependencies do not violate Magento module's composer dependencies.
-
+* Action Group Unused Arguments: Checks that action groups do not have unused arguments.
+    
 ### `upgrade:tests`
 
 Applies all the MFTF major version upgrade scripts to test components in the given path (`test.xml`, `data.xml`, etc).
diff --git a/src/Magento/FunctionalTestingFramework/StaticCheck/ActionGroupArgumentsCheck.php b/src/Magento/FunctionalTestingFramework/StaticCheck/ActionGroupArgumentsCheck.php
new file mode 100644
index 000000000..32c7661fe
--- /dev/null
+++ b/src/Magento/FunctionalTestingFramework/StaticCheck/ActionGroupArgumentsCheck.php
@@ -0,0 +1,211 @@
+<?php
+/**
+ * Copyright © Magento, Inc. All rights reserved.
+ * See COPYING.txt for license details.
+ */
+
+namespace Magento\FunctionalTestingFramework\StaticCheck;
+
+use Magento\FunctionalTestingFramework\Config\MftfApplicationConfig;
+use Magento\FunctionalTestingFramework\Exceptions\XmlException;
+use Magento\FunctionalTestingFramework\Test\Handlers\ActionGroupObjectHandler;
+use Magento\FunctionalTestingFramework\Test\Objects\ActionGroupObject;
+use Symfony\Component\Console\Input\InputInterface;
+use Magento\FunctionalTestingFramework\Util\ModuleResolver;
+use Symfony\Component\Finder\Finder;
+use Exception;
+
+/**
+ * Class ActionGroupArgumentsCheck
+ * @package Magento\FunctionalTestingFramework\StaticCheck
+ */
+class ActionGroupArgumentsCheck implements StaticCheckInterface
+{
+
+    const ACTIONGROUP_XML_REGEX_PATTERN = '/<actionGroup\sname=(?: (?!<\/actionGroup>).)*/mxs';
+    const ACTIONGROUP_ARGUMENT_REGEX_PATTERN = '/<argument[^\/>]*name="([^"\']*)/mxs';
+    const ACTIONGROUP_NAME_REGEX_PATTERN = '/<actionGroup name=["\']([^\'"]*)/';
+
+    const ERROR_LOG_FILENAME = 'mftf-arguments-checks';
+    const ERROR_LOG_MESSAGE = 'MFTF Action Group Unused Arguments Check';
+
+    /**
+     * Array containing all errors found after running the execute() function.
+     * @var array
+     */
+    private $errors = [];
+
+    /**
+     * String representing the output summary found after running the execute() function.
+     * @var string
+     */
+    private $output;
+
+    /**
+     * Checks unused arguments in action groups and prints out error to file.
+     *
+     * @param  InputInterface $input
+     * @return void
+     * @throws Exception
+     */
+    public function execute(InputInterface $input)
+    {
+        MftfApplicationConfig::create(
+            true,
+            MftfApplicationConfig::UNIT_TEST_PHASE,
+            false,
+            MftfApplicationConfig::LEVEL_NONE,
+            true
+        );
+
+        $allModules = ModuleResolver::getInstance()->getModulesPath();
+
+        $actionGroupXmlFiles = StaticCheckHelper::buildFileList(
+            $allModules,
+            DIRECTORY_SEPARATOR . 'ActionGroup' . DIRECTORY_SEPARATOR
+        );
+
+        $this->errors = $this->findErrorsInFileSet($actionGroupXmlFiles);
+
+        $this->output = StaticCheckHelper::printErrorsToFile(
+            $this->errors,
+            self::ERROR_LOG_FILENAME,
+            self::ERROR_LOG_MESSAGE
+        );
+    }
+
+    /**
+     * Return array containing all errors found after running the execute() function.
+     * @return array
+     */
+    public function getErrors()
+    {
+        return $this->errors;
+    }
+
+    /**
+     * Return string of a short human readable result of the check. For example: "No unused arguments found."
+     * @return string
+     */
+    public function getOutput()
+    {
+        return $this->output;
+    }
+
+    /**
+     * Finds all unused arguments in given set of actionGroup files
+     * @param Finder $files
+     * @return array $testErrors
+     */
+    private function findErrorsInFileSet($files)
+    {
+        $actionGroupErrors = [];
+        foreach ($files as $filePath) {
+            $contents = file_get_contents($filePath);
+            preg_match_all(self::ACTIONGROUP_XML_REGEX_PATTERN, $contents, $actionGroups);
+            $actionGroupToArguments = $this->buildUnusedArgumentList($actionGroups[0]);
+            $actionGroupErrors += $this->setErrorOutput($actionGroupToArguments, $filePath);
+        }
+        return $actionGroupErrors;
+    }
+
+    /**
+     * Builds array of action group => unused arguments
+     * @param array $actionGroups
+     * @return array $actionGroupToArguments
+     */
+    private function buildUnusedArgumentList($actionGroups)
+    {
+        $actionGroupToArguments = [];
+
+        foreach ($actionGroups as $actionGroupXml) {
+            preg_match(self::ACTIONGROUP_NAME_REGEX_PATTERN, $actionGroupXml, $actionGroupName);
+            $unusedArguments = $this->findUnusedArguments($actionGroupXml);
+            if (!empty($unusedArguments)) {
+                $actionGroupToArguments[$actionGroupName[1]] = $unusedArguments;
+            }
+        }
+        return $actionGroupToArguments;
+    }
+
+    /**
+     * Returns unused arguments in an action group
+     * @param string $actionGroupXml
+     * @return array
+     */
+    private function findUnusedArguments($actionGroupXml)
+    {
+        $unusedArguments = [];
+
+        preg_match_all(self::ACTIONGROUP_ARGUMENT_REGEX_PATTERN, $actionGroupXml, $arguments);
+        preg_match(self::ACTIONGROUP_NAME_REGEX_PATTERN, $actionGroupXml, $actionGroupName);
+        try {
+            $actionGroup = ActionGroupObjectHandler::getInstance()->getObject($actionGroupName[1]);
+        } catch (XmlException $e) {
+        }
+        foreach ($arguments[1] as $argument) {
+            //pattern to match all argument references
+            $patterns = [
+                '(\{{2}' . $argument . '(\.[a-zA-Z0-9_\[\]\(\).,\'\/ ]+)?}{2})',
+                '([(,\s\'$$]' . $argument . '(\.[a-zA-Z0-9_$\[\]]+)?[),\s\'])'
+            ];
+            // matches entity references
+            if (preg_match($patterns[0], $actionGroupXml)) {
+                continue;
+            }
+            //matches parametrized references
+            if (preg_match($patterns[1], $actionGroupXml)) {
+                continue;
+            }
+            //for extending action groups, exclude arguments that are also defined in parent action group
+            if ($this->isParentActionGroupArgument($argument, $actionGroup)) {
+                continue;
+            }
+            $unusedArguments[] = $argument;
+        }
+        return $unusedArguments;
+    }
+
+    /**
+     * Checks if the argument is also defined in the parent for extending action groups.
+     * @param string            $argument
+     * @param ActionGroupObject $actionGroup
+     * @return boolean
+     */
+    private function isParentActionGroupArgument($argument, $actionGroup)
+    {
+        $parentActionGroupName = $actionGroup->getParentName();
+        if ($parentActionGroupName !== null) {
+            $parentActionGroup = ActionGroupObjectHandler::getInstance()->getObject($parentActionGroupName);
+            $parentArguments = $parentActionGroup->getArguments();
+            foreach ($parentArguments as $parentArgument) {
+                if ($argument === $parentArgument->getName()) {
+                    return true;
+                }
+            }
+        }
+        return false;
+    }
+
+    /**
+     * Builds and returns error output for violating references
+     *
+     * @param array  $actionGroupToArguments
+     * @param string $path
+     * @return mixed
+     */
+    private function setErrorOutput($actionGroupToArguments, $path)
+    {
+        $actionGroupErrors = [];
+        if (!empty($actionGroupToArguments)) {
+            // Build error output
+            $errorOutput = "\nFile \"{$path->getRealPath()}\"";
+            $errorOutput .= "\ncontains action group(s) with unused arguments.\n\t\t";
+            foreach ($actionGroupToArguments as $actionGroup => $arguments) {
+                $errorOutput .= "\n\t {$actionGroup} has unused argument(s): " . implode(", ", $arguments);
+            }
+            $actionGroupErrors[$path->getRealPath()][] = $errorOutput;
+        }
+        return $actionGroupErrors;
+    }
+}
diff --git a/src/Magento/FunctionalTestingFramework/StaticCheck/StaticCheckHelper.php b/src/Magento/FunctionalTestingFramework/StaticCheck/StaticCheckHelper.php
new file mode 100644
index 000000000..f534544fc
--- /dev/null
+++ b/src/Magento/FunctionalTestingFramework/StaticCheck/StaticCheckHelper.php
@@ -0,0 +1,56 @@
+<?php
+/**
+ * Copyright © Magento, Inc. All rights reserved.
+ * See COPYING.txt for license details.
+ */
+namespace Magento\FunctionalTestingFramework\StaticCheck;
+
+use Symfony\Component\Finder\Finder;
+
+class StaticCheckHelper
+{
+    /**
+     * Prints out given errors to file, and returns summary result string
+     * @param array  $errors
+     * @param string $filename
+     * @param string $message
+     * @return string
+     */
+    public static function printErrorsToFile($errors, $filename, $message)
+    {
+        if (empty($errors)) {
+            return $message . ": No errors found.";
+        }
+
+        $outputPath = getcwd() . DIRECTORY_SEPARATOR . $filename . ".txt";
+        $fileResource = fopen($outputPath, 'w');
+
+        foreach ($errors as $test => $error) {
+            fwrite($fileResource, $error[0] . PHP_EOL);
+        }
+
+        fclose($fileResource);
+        $errorCount = count($errors);
+        $output = $message . ": Errors found across {$errorCount} file(s). Error details output to {$outputPath}";
+
+        return $output;
+    }
+
+    /**
+     * Builds list of all XML files in given modulePaths + path given
+     * @param array  $modulePaths
+     * @param string $path
+     * @return Finder
+     */
+    public static function buildFileList($modulePaths, $path)
+    {
+        $finder = new Finder();
+        foreach ($modulePaths as $modulePath) {
+            if (!realpath($modulePath . $path)) {
+                continue;
+            }
+            $finder->files()->in($modulePath . $path)->name("*.xml");
+        }
+        return $finder->files();
+    }
+}
diff --git a/src/Magento/FunctionalTestingFramework/StaticCheck/StaticChecksList.php b/src/Magento/FunctionalTestingFramework/StaticCheck/StaticChecksList.php
index f3cf20739..ffa63389d 100644
--- a/src/Magento/FunctionalTestingFramework/StaticCheck/StaticChecksList.php
+++ b/src/Magento/FunctionalTestingFramework/StaticCheck/StaticChecksList.php
@@ -29,6 +29,7 @@ public function __construct(array $checks = [])
     {
         $this->checks = [
             'testDependencies' => new TestDependencyCheck(),
+            'actionGroupArguments' => new ActionGroupArgumentsCheck(),
         ] + $checks;
     }
 
diff --git a/src/Magento/FunctionalTestingFramework/StaticCheck/TestDependencyCheck.php b/src/Magento/FunctionalTestingFramework/StaticCheck/TestDependencyCheck.php
index 19725dc18..3c3ed6a37 100644
--- a/src/Magento/FunctionalTestingFramework/StaticCheck/TestDependencyCheck.php
+++ b/src/Magento/FunctionalTestingFramework/StaticCheck/TestDependencyCheck.php
@@ -32,6 +32,9 @@ class TestDependencyCheck implements StaticCheckInterface
     const ACTIONGROUP_REGEX_PATTERN = '/ref=["\']([^\'"]*)/';
     const ACTIONGROUP_ARGUMENT_REGEX_PATTERN = '/<argument[^\/>]*name="([^"\']*)/';
 
+    const ERROR_LOG_FILENAME = 'mftf-dependency-checks';
+    const ERROR_LOG_MESSAGE = 'MFTF File Dependency Check';
+
     /**
      * Array of FullModuleName => [dependencies]
      * @var array
@@ -113,9 +116,9 @@ public function execute(InputInterface $input)
             DIRECTORY_SEPARATOR . 'Data' . DIRECTORY_SEPARATOR,
         ];
         // These files can contain references to other modules.
-        $testXmlFiles = $this->buildFileList($allModules, $filePaths[0]);
-        $actionGroupXmlFiles = $this->buildFileList($allModules, $filePaths[1]);
-        $dataXmlFiles= $this->buildFileList($allModules, $filePaths[2]);
+        $testXmlFiles = StaticCheckHelper::buildFileList($allModules, $filePaths[0]);
+        $actionGroupXmlFiles = StaticCheckHelper::buildFileList($allModules, $filePaths[1]);
+        $dataXmlFiles= StaticCheckHelper::buildFileList($allModules, $filePaths[2]);
 
         $this->errors = [];
         $this->errors += $this->findErrorsInFileSet($testXmlFiles);
@@ -123,7 +126,11 @@ public function execute(InputInterface $input)
         $this->errors += $this->findErrorsInFileSet($dataXmlFiles);
 
         // hold on to the output and print any errors to a file
-        $this->output = $this->printErrorsToFile();
+        $this->output = StaticCheckHelper::printErrorsToFile(
+            $this->errors,
+            self::ERROR_LOG_FILENAME,
+            self::ERROR_LOG_MESSAGE
+        );
     }
 
     /**
@@ -413,24 +420,6 @@ private function getModuleDependenciesFromReferences($array)
         return $filenames;
     }
 
-    /**
-     * Builds list of all XML files in given modulePaths + path given
-     * @param string $modulePaths
-     * @param string $path
-     * @return Finder
-     */
-    private function buildFileList($modulePaths, $path)
-    {
-        $finder = new Finder();
-        foreach ($modulePaths as $modulePath) {
-            if (!realpath($modulePath . $path)) {
-                continue;
-            }
-            $finder->files()->in($modulePath . $path)->name("*.xml");
-        }
-        return $finder->files();
-    }
-
     /**
      * Attempts to find any MFTF entity by its name. Returns null if none are found.
      * @param string $name
@@ -461,32 +450,4 @@ private function findEntity($name)
         }
         return null;
     }
-
-    /**
-     * Prints out given errors to file, and returns summary result string
-     * @return string
-     */
-    private function printErrorsToFile()
-    {
-        $errors = $this->getErrors();
-
-        if (empty($errors)) {
-            return "No Dependency errors found.";
-        }
-
-        $outputPath = getcwd() . DIRECTORY_SEPARATOR . "mftf-dependency-checks.txt";
-        $fileResource = fopen($outputPath, 'w');
-        $header = "MFTF File Dependency Check:\n";
-        fwrite($fileResource, $header);
-
-        foreach ($errors as $test => $error) {
-            fwrite($fileResource, $error[0] . PHP_EOL);
-        }
-
-        fclose($fileResource);
-        $errorCount = count($errors);
-        $output = "Dependency errors found across {$errorCount} file(s). Error details output to {$outputPath}";
-
-        return $output;
-    }
 }