diff --git a/.gitignore b/.gitignore
index df191195..0ec272f6 100644
--- a/.gitignore
+++ b/.gitignore
@@ -10,3 +10,4 @@ vulture.egg-info/
 .pytest_cache/
 .tox/
 .venv/
+.vscode/
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 42d9d406..8e7a0b4e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,6 @@
 * Add `UnicodeEncodeError` exception handling to `core.py` (milanbalazs, #299).
 * Add whitelist for `Enum` attributes `_name_` and `_value_` (Eugene Toder, #305).
+* Fix false positive when iterating over `Enum` (anudaweerasinghe, pm3512, addykan, #304)
 
 # 2.7 (2023-01-08)
 
@@ -301,4 +302,4 @@
 
 # 0.1 (2012-03-17)
 
-* First release.
+* First release.
\ No newline at end of file
diff --git a/tests/test_scavenging.py b/tests/test_scavenging.py
index 27154cd6..6a287547 100644
--- a/tests/test_scavenging.py
+++ b/tests/test_scavenging.py
@@ -899,3 +899,38 @@ class Color(Enum):
 
     check(v.unused_classes, [])
     check(v.unused_vars, ["BLUE"])
+
+
+def test_enum_list(v):
+    v.scan(
+        """\
+import enum
+class E(enum.Enum):
+    A = 1
+    B = 2
+
+print(list(E))
+"""
+    )
+
+    check(v.defined_classes, ["E"])
+    check(v.defined_vars, ["A", "B"])
+    check(v.unused_vars, [])
+
+
+def test_enum_for(v):
+    v.scan(
+        """\
+import enum
+class E(enum.Enum):
+    A = 1
+    B = 2
+
+for e in E:
+    print(e)
+"""
+    )
+
+    check(v.defined_classes, ["E"])
+    check(v.defined_vars, ["A", "B", "e"])
+    check(v.unused_vars, [])
diff --git a/vulture/core.py b/vulture/core.py
index 16c71948..523a3dbc 100644
--- a/vulture/core.py
+++ b/vulture/core.py
@@ -219,6 +219,10 @@ def get_list(typ):
         self.code = []
         self.found_dead_code_or_error = False
 
+        self.enum_class_vars = (
+            dict()
+        )  # stores variables defined in enum classes
+
     def scan(self, code, filename=""):
         filename = Path(filename)
         self.code = code.splitlines()
@@ -551,6 +555,18 @@ def visit_Call(self, node):
         ):
             self._handle_new_format_string(node.func.value.s)
 
+        # handle enum.Enum members
+        iter_functions = ["list", "tuple", "set"]
+        if (
+            isinstance(node.func, ast.Name)
+            and node.func.id in iter_functions
+            and len(node.args) > 0
+            and isinstance(node.args[0], ast.Name)
+        ):
+            arg = node.args[0].id
+            if arg in self.enum_class_vars:
+                self.used_names.update(self.enum_class_vars[arg])
+
     def _handle_new_format_string(self, s):
         def is_identifier(name):
             return bool(re.match(r"[a-zA-Z_][a-zA-Z0-9_]*", name))
@@ -581,6 +597,20 @@ def _is_locals_call(node):
             and not node.keywords
         )
 
+    @staticmethod
+    def _is_subclass(node, class_name):
+        """Return True if the node is a subclass of the given class."""
+        assert isinstance(node, ast.ClassDef)
+        for superclass in node.bases:
+            if (
+                isinstance(superclass, ast.Name)
+                and superclass.id == class_name
+                or isinstance(superclass, ast.Attribute)
+                and superclass.attr == class_name
+            ):
+                return True
+        return False
+
     def visit_ClassDef(self, node):
         for decorator in node.decorator_list:
             if _match(
@@ -594,6 +624,15 @@ def visit_ClassDef(self, node):
             self._define(
                 self.defined_classes, node.name, node, ignore=_ignore_class
             )
+            # if subclasses enum add class variables to enum_class_vars
+            if self._is_subclass(node, "Enum"):
+                newKey = node.name
+                classVariables = []
+                for stmt in node.body:
+                    if isinstance(stmt, ast.Assign):
+                        for target in stmt.targets:
+                            classVariables.append(target.id)
+                self.enum_class_vars[newKey] = classVariables
 
     def visit_FunctionDef(self, node):
         decorator_names = [
@@ -661,6 +700,14 @@ def visit_Assign(self, node):
     def visit_While(self, node):
         self._handle_conditional_node(node, "while")
 
+    def visit_For(self, node):
+        # Handle iterating over Enum
+        if (
+            isinstance(node.iter, ast.Name)
+            and node.iter.id in self.enum_class_vars
+        ):
+            self.used_names.update(self.enum_class_vars[node.iter.id])
+
     def visit_MatchClass(self, node):
         for kwd_attr in node.kwd_attrs:
             self.used_names.add(kwd_attr)