diff --git a/docs/pages/release_notes.md b/docs/pages/release_notes.md
index b626a0b762..cabc0d7b83 100644
--- a/docs/pages/release_notes.md
+++ b/docs/pages/release_notes.md
@@ -27,6 +27,8 @@ This is a {{ site.pmd.release_type }} release.
   * [#5222](https://github.com/pmd/pmd/issues/5222): \[core] RuleReference/RuleSetWriter don't handle changed default property values correctly
 * java
   * [#5190](https://github.com/pmd/pmd/issues/5190): \[java] NPE in type inference
+* java-codestyle
+  * [#5046](https://github.com/pmd/pmd/issues/5046): \[java] LocalVariableCouldBeFinal false positive with try/catch
 * java-errorprone
   * [#5068](https://github.com/pmd/pmd/issues/5068): \[java] MissingStaticMethodInNonInstantiatableClass: false positive with builder pattern
   * [#5207](https://github.com/pmd/pmd/issues/5207): \[java] CheckSkipResult: false positve for a private method `void skip(int)` in a subclass of FilterInputStream
diff --git a/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/internal/DataflowPass.java b/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/internal/DataflowPass.java
index c16c1a34ed..183cd71fd0 100644
--- a/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/internal/DataflowPass.java
+++ b/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/internal/DataflowPass.java
@@ -636,7 +636,16 @@ public final class DataflowPass {
                 SpanInfo exceptionalState = null;
                 int i = 0;
                 for (ASTCatchClause catchClause : node.getCatchClauses()) {
-                    SpanInfo current = acceptOpt(catchClause, catchSpans.get(i));
+                    /*
+                        Note: here we absorb the end state of the body, which is not necessary.
+                        We do that to conform to the language's definition of "effective-finality",
+                        which is more conservative than needed. Doing this fixes FPs in LocalVariableCouldBeFinal
+                        at the cost of some FNs in UnusedAssignment.
+                     */
+                    SpanInfo catchSpan = catchSpans.get(i);
+                    catchSpan.absorb(bodyState);
+
+                    SpanInfo current = acceptOpt(catchClause, catchSpan);
                     exceptionalState = current.absorb(exceptionalState);
                     i++;
                 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/AllDataflowRuleTests.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/AllDataflowRuleTests.java
new file mode 100644
index 0000000000..a0e8159ddc
--- /dev/null
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/AllDataflowRuleTests.java
@@ -0,0 +1,32 @@
+/*
+ * BSD-style license; for more info see http://pmd.sourceforge.net/license.html
+ */
+
+package net.sourceforge.pmd.lang.java.rule;
+
+
+import org.junit.platform.suite.api.SelectClasses;
+import org.junit.platform.suite.api.Suite;
+
+import net.sourceforge.pmd.lang.java.rule.bestpractices.UnusedAssignmentTest;
+import net.sourceforge.pmd.lang.java.rule.codestyle.LocalVariableCouldBeFinalTest;
+import net.sourceforge.pmd.lang.java.rule.design.AvoidThrowingNullPointerExceptionTest;
+import net.sourceforge.pmd.lang.java.rule.design.ImmutableFieldTest;
+import net.sourceforge.pmd.lang.java.rule.design.LawOfDemeterTest;
+import net.sourceforge.pmd.lang.java.rule.design.SingularFieldTest;
+import net.sourceforge.pmd.lang.java.rule.errorprone.ImplicitSwitchFallThroughTest;
+import net.sourceforge.pmd.lang.java.rule.errorprone.InvalidLogMessageFormatTest;
+
+@Suite
+@SelectClasses({
+    LocalVariableCouldBeFinalTest.class,
+    ImmutableFieldTest.class,
+    UnusedAssignmentTest.class,
+    LawOfDemeterTest.class,
+    SingularFieldTest.class,
+    ImplicitSwitchFallThroughTest.class,
+    InvalidLogMessageFormatTest.class,
+    AvoidThrowingNullPointerExceptionTest.class
+})
+public class AllDataflowRuleTests {
+}
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/bestpractices/UnusedAssignmentTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/bestpractices/UnusedAssignmentTest.java
index 0401dd83ec..61f8a16b77 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/bestpractices/UnusedAssignmentTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/bestpractices/UnusedAssignmentTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.bestpractices;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class UnusedAssignmentTest extends PmdRuleTst {
+public class UnusedAssignmentTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/codestyle/LocalVariableCouldBeFinalTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/codestyle/LocalVariableCouldBeFinalTest.java
index 5c49860210..d87bf490ac 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/codestyle/LocalVariableCouldBeFinalTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/codestyle/LocalVariableCouldBeFinalTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.codestyle;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class LocalVariableCouldBeFinalTest extends PmdRuleTst {
+public class LocalVariableCouldBeFinalTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/AvoidThrowingNullPointerExceptionTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/AvoidThrowingNullPointerExceptionTest.java
index c1b437ab41..e729824a6d 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/AvoidThrowingNullPointerExceptionTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/AvoidThrowingNullPointerExceptionTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.design;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class AvoidThrowingNullPointerExceptionTest extends PmdRuleTst {
+public class AvoidThrowingNullPointerExceptionTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/ImmutableFieldTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/ImmutableFieldTest.java
index eb0972d72b..7c614b7dcd 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/ImmutableFieldTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/ImmutableFieldTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.design;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class ImmutableFieldTest extends PmdRuleTst {
+public class ImmutableFieldTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/LawOfDemeterTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/LawOfDemeterTest.java
index b4e94a6e26..88e54418ac 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/LawOfDemeterTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/LawOfDemeterTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.design;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class LawOfDemeterTest extends PmdRuleTst {
+public class LawOfDemeterTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/SingularFieldTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/SingularFieldTest.java
index 81835c7c5b..b550b06f85 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/SingularFieldTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/design/SingularFieldTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.design;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class SingularFieldTest extends PmdRuleTst {
+public class SingularFieldTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/ImplicitSwitchFallThroughTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/ImplicitSwitchFallThroughTest.java
index 3a14a27009..71f0e03495 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/ImplicitSwitchFallThroughTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/ImplicitSwitchFallThroughTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.errorprone;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class ImplicitSwitchFallThroughTest extends PmdRuleTst {
+public class ImplicitSwitchFallThroughTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/InvalidLogMessageFormatTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/InvalidLogMessageFormatTest.java
index 933231b1bc..091595c70e 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/InvalidLogMessageFormatTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/rule/errorprone/InvalidLogMessageFormatTest.java
@@ -6,6 +6,6 @@ package net.sourceforge.pmd.lang.java.rule.errorprone;
 
 import net.sourceforge.pmd.test.PmdRuleTst;
 
-class InvalidLogMessageFormatTest extends PmdRuleTst {
+public class InvalidLogMessageFormatTest extends PmdRuleTst {
     // no additional unit tests
 }
diff --git a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/bestpractices/xml/UnusedAssignment.xml b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/bestpractices/xml/UnusedAssignment.xml
index 0d36b80ef7..5893fc117f 100644
--- a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/bestpractices/xml/UnusedAssignment.xml
+++ b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/bestpractices/xml/UnusedAssignment.xml
@@ -1199,11 +1199,12 @@ public class Foo {
 
     <test-code>
         <description>Definitions in try block reach catch blocks through method calls</description>
-        <expected-problems>2</expected-problems>
-        <expected-linenumbers>4,7</expected-linenumbers>
+        <expected-problems>1</expected-problems>
+        <expected-linenumbers>4</expected-linenumbers>
         <expected-messages>
             <message>The initializer for variable 'halfway' is never used (overwritten on line 7)</message>
-            <message>The value assigned to variable 'halfway' is never used</message>
+            <!-- This was disabled because it causes FPs in LocalVariableCouldBeFinal. -->
+            <!-- <message>The value assigned to variable 'halfway' is never used</message>-->
         </expected-messages>
         <code><![CDATA[
 public class Foo {
@@ -1251,11 +1252,13 @@ public class Foo {
     </test-code>
     <test-code>
         <description>Definitions in try block reach catch blocks through method calls 3</description>
-        <expected-problems>1</expected-problems>
-        <expected-linenumbers>8</expected-linenumbers>
-        <expected-messages>
-            <message>The value assigned to variable 'halfway' is never used</message>
-        </expected-messages>
+        <!-- This was disabled because it causes FPs in LocalVariableCouldBeFinal. -->
+        <expected-problems>0</expected-problems>
+<!--        <expected-problems>1</expected-problems>-->
+<!--        <expected-linenumbers>8</expected-linenumbers>-->
+<!--        <expected-messages>-->
+<!--            <message>The value assigned to variable 'halfway' is never used</message>-->
+<!--        </expected-messages>-->
         <code><![CDATA[
 public class Foo {
 
@@ -1328,7 +1331,7 @@ public class Foo {
         <expected-linenumbers>5,7,9</expected-linenumbers>
         <expected-messages>
             <message>The initializer for variable 'a' is never used (overwritten on lines 7, 9 and 11)</message>
-            <message>The value assigned to variable 'a' is never used (overwritten on line 11)</message>
+            <message>The value assigned to variable 'a' is never used (overwritten on lines 9 and 11)</message>
             <message>The value assigned to variable 'a' is never used (overwritten on line 11)</message>
         </expected-messages>
         <code><![CDATA[
diff --git a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/codestyle/xml/LocalVariableCouldBeFinal.xml b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/codestyle/xml/LocalVariableCouldBeFinal.xml
index 54b7d3201a..445d20391e 100644
--- a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/codestyle/xml/LocalVariableCouldBeFinal.xml
+++ b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/codestyle/xml/LocalVariableCouldBeFinal.xml
@@ -386,6 +386,26 @@ public class ClassWithLambda {
             ek[114] |= 32; ek[123] |=  2;
         }
     }
+}
+        ]]></code>
+    </test-code>
+    <test-code>
+        <description> [java] LocalVariableCouldBeFinal false positive with try/catch #5046 </description>
+        <expected-problems>0</expected-problems>
+        <code><![CDATA[
+import java.util.Optional;
+import foo.FileWatcher;
+public class ClassWithLambda {
+    private Optional<FileWatcher> createFileWatcher() {
+        Optional<FileWatcher> optionalFileWatcher;  // false positive in PMD 7.2.0, cannot be final
+        try {
+            optionalFileWatcher = Optional.of(new FileWatcher());
+        } catch (final IOException e) {
+            optionalFileWatcher = Optional.empty();
+        }
+        return optionalFileWatcher;
+    }
+
 }
         ]]></code>
     </test-code>