diff --git a/docs/pages/release_notes.md b/docs/pages/release_notes.md
index d481cf4fa4..544bf311d8 100644
--- a/docs/pages/release_notes.md
+++ b/docs/pages/release_notes.md
@@ -41,6 +41,7 @@ This is a {{ site.pmd.release_type }} release.
     *   [#3679](https://github.com/pmd/pmd/issues/3679): \[java] Make FinalFieldCouldBeStatic detect constant variable
 *   java-errorprone
     *   [#3686](https://github.com/pmd/pmd/issues/3686): \[java] ReturnEmptyCollectionRatherThanNull - false negative with conditioned returns
+    *   [#3701](https://github.com/pmd/pmd/issues/3701): \[java] MissingStaticMethodInNonInstantiatableClass false positive with method inner classes
 *   java-performance
     *   [#3492](https://github.com/pmd/pmd/issues/3492): \[java] UselessStringValueOf: False positive when there is no initial String to append to
 
@@ -57,6 +58,7 @@ This is a {{ site.pmd.release_type }} release.
 *   [#3719](https://github.com/pmd/pmd/pull/3719): \[java] Upgrade log4j to 2.17.1 - [Daniel Paul Searles](https://github.com/squaresurf)
 *   [#3720](https://github.com/pmd/pmd/pull/3720): \[java] New rule: FinalParameterInAbstractMethod - [Vincent Galloy](https://github.com/vgalloy)
 *   [#3724](https://github.com/pmd/pmd/pull/3724): \[java] Fix for #3686 - fix FinalFieldCouldBeStatic - [Oleksii Dykov](https://github.com/dykov)
+*   [#3742](https://github.com/pmd/pmd/pull/3742): \[java] Fix #3701 - fix MissingStaticMethodInNonInstantiatableClass for method local classes - [Oleksii Dykov](https://github.com/dykov)
 *   [#3744](https://github.com/pmd/pmd/pull/3744): \[core] Updated SaxonXPathRuleQueryTest.java - [Vyom Yadav](https://github.com/Vyom-Yadav)
 
 {% endtocmaker %}
diff --git a/pmd-java/src/main/resources/category/java/errorprone.xml b/pmd-java/src/main/resources/category/java/errorprone.xml
index a45c37bab1..3427dac0d9 100644
--- a/pmd-java/src/main/resources/category/java/errorprone.xml
+++ b/pmd-java/src/main/resources/category/java/errorprone.xml
@@ -2547,7 +2547,7 @@ See the property `annotations`.
             <property name="xpath">
                 <value>
 <![CDATA[
-//ClassOrInterfaceDeclaration[@Nested= false()]
+//ClassOrInterfaceDeclaration[@Nested= false() and @Local= false()]
 [
   (
     (: at least one constructor :)
diff --git a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/errorprone/xml/MissingStaticMethodInNonInstantiatableClass.xml b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/errorprone/xml/MissingStaticMethodInNonInstantiatableClass.xml
index e67f9d3a29..5821f250fa 100644
--- a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/errorprone/xml/MissingStaticMethodInNonInstantiatableClass.xml
+++ b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/errorprone/xml/MissingStaticMethodInNonInstantiatableClass.xml
@@ -346,6 +346,36 @@ public abstract class MyADT {
             return onInt.apply(integer);
         }
     }
+}
+        ]]></code>
+    </test-code>
+
+    <test-code>
+        <description>#3701 - false positive with method inner class</description>
+        <expected-problems>0</expected-problems>
+        <code><![CDATA[
+public class Scratch {
+
+    public static void main(String[] args) {
+        Scratch scratch = new Scratch();
+
+        scratch.callMethod();
+    }
+
+    void callMethod() {
+
+        class InnerClass {
+            private InnerClass() {
+            }
+
+            void display() {
+                System.out.println("Works OK!");
+            }
+        }
+
+        InnerClass innerClass = new InnerClass();
+        innerClass.display();
+    }
 }
         ]]></code>
     </test-code>