diff --git a/docs/rules/no-template-shadow.md b/docs/rules/no-template-shadow.md
index 5bddba45c..0dcfb2171 100644
--- a/docs/rules/no-template-shadow.md
+++ b/docs/rules/no-template-shadow.md
@@ -36,13 +36,13 @@ This rule aims to eliminate shadowed variable declarations of v-for directives o
 </template>
 
 <script>
-  export default {
-    data () {
-      return {
-        l: false
-      }
+export default {
+  data() {
+    return {
+      l: false
     }
   }
+}
 </script>
 ```
 
@@ -50,7 +50,37 @@ This rule aims to eliminate shadowed variable declarations of v-for directives o
 
 ## :wrench: Options
 
-Nothing.
+This rule takes one optional object option, with the property `"allow"`.
+
+```json
+{
+  "no-template-shadow": ["error", { "allow": [] }]
+}
+```
+
+- `"allow"` (`[string]`) Array of identifier names for which shadowing is allowed.
+
+Examples of correct code for the `{ "allow": ["i"] }` option:
+
+<eslint-code-block :rules="{'vue/no-template-shadow': ['error', { allow: ['i'] }]}">
+
+```vue
+<template>
+  <div v-for="i in 5"></div>
+</template>
+
+<script>
+export default {
+  data() {
+    return {
+      i: 'some value'
+    }
+  }
+}
+</script>
+```
+
+</eslint-code-block>
 
 ## :rocket: Version
 
diff --git a/lib/rules/no-template-shadow.js b/lib/rules/no-template-shadow.js
index 4b7528a0b..8be04b9cc 100644
--- a/lib/rules/no-template-shadow.js
+++ b/lib/rules/no-template-shadow.js
@@ -20,6 +20,13 @@ const GROUP_NAMES = [
   'setup'
 ]
 
+function isAllowedVarName(context, variableName) {
+  if (context.options[0] && context.options[0].allow) {
+    return context.options[0].allow.includes(variableName)
+  }
+  return false
+}
+
 module.exports = {
   meta: {
     type: 'suggestion',
@@ -30,7 +37,21 @@ module.exports = {
       url: 'https://eslint.vuejs.org/rules/no-template-shadow.html'
     },
     fixable: null,
-    schema: [],
+    schema: [
+      {
+        type: 'object',
+        properties: {
+          allow: {
+            type: 'array',
+            items: {
+              type: 'string'
+            },
+            uniqueItems: true
+          }
+        },
+        additionalProperties: false
+      }
+    ],
     messages: {
       alreadyDeclaredInUpperScope:
         "Variable '{{name}}' is already declared in the upper scope."
@@ -102,6 +123,11 @@ module.exports = {
           for (const variable of node.variables) {
             const varNode = variable.id
             const name = varNode.name
+
+            if (isAllowedVarName(context, name)) {
+              continue
+            }
+
             if (
               scopeStack.nodes.some((node) => node.name === name) ||
               jsVars.has(name)
diff --git a/tests/lib/rules/no-template-shadow.js b/tests/lib/rules/no-template-shadow.js
index e2ea096b7..6844b5f9f 100644
--- a/tests/lib/rules/no-template-shadow.js
+++ b/tests/lib/rules/no-template-shadow.js
@@ -155,6 +155,21 @@ ruleTester.run('no-template-shadow', rule, {
       defineProps({k:Number})
       </script>
       `
+    },
+    {
+      filename: 'test.vue',
+      code: `
+      <template>
+        <div v-for="i in 5">
+          <div v-for="i in 5">
+          </div>
+        </div>
+      </template>
+      <script setup>
+      defineProps({i:Number})
+      </script>
+      `,
+      options: [{ allow: ['i'] }]
     }
   ],