diff --git a/lib/elixir_sense/core/compiler.ex b/lib/elixir_sense/core/compiler.ex
index 5bb62c7c..073374fd 100644
--- a/lib/elixir_sense/core/compiler.ex
+++ b/lib/elixir_sense/core/compiler.ex
@@ -948,6 +948,27 @@ defmodule ElixirSense.Core.Compiler do
 
   # Macro handling
 
+  defp expand_macro(
+         meta,
+         Kernel,
+         :use,
+         [target_module | _opts] = args,
+         callback,
+         state,
+         env
+       ) do
+    {expanded_module, state, env} = expand(target_module, state, env)
+
+    state =
+      if is_atom(expanded_module) do
+        State.add_use(expanded_module, state, env)
+      else
+        state
+      end
+
+    expand_macro_callback(meta, Kernel, :use, args, callback, state, env)
+  end
+
   defp expand_macro(
          meta,
          Kernel,
@@ -2153,8 +2174,10 @@ defmodule ElixirSense.Core.Compiler do
       # If expanding the macro fails, we just give up.
       _kind, _payload ->
         # Logger.warning(Exception.format(kind, payload, __STACKTRACE__))
+        uses = state.uses
         # look for cursor in args
         {_ast, state, _env} = expand(args, state, env)
+        state = %{state | uses: uses}
 
         {{{:., meta, [module, fun]}, meta, args}, state, env}
     else
diff --git a/lib/elixir_sense/core/compiler/state.ex b/lib/elixir_sense/core/compiler/state.ex
index 3d091afd..790518fe 100644
--- a/lib/elixir_sense/core/compiler/state.ex
+++ b/lib/elixir_sense/core/compiler/state.ex
@@ -48,6 +48,7 @@ defmodule ElixirSense.Core.Compiler.State do
           attributes: list(list(ElixirSense.Core.State.AttributeInfo.t())),
           scope_attributes: list(list(atom)),
           behaviours: %{optional(module) => [module]},
+          uses: %{optional(module) => [module]},
           specs: specs_t,
           types: types_t,
           mods_funs_to_positions: mods_funs_to_positions_t,
@@ -88,6 +89,7 @@ defmodule ElixirSense.Core.Compiler.State do
   defstruct attributes: [[]],
             scope_attributes: [[]],
             behaviours: %{},
+            uses: %{},
             specs: %{},
             types: %{},
             mods_funs_to_positions: %{},
@@ -1050,6 +1052,12 @@ defmodule ElixirSense.Core.Compiler.State do
 
   def add_behaviour(_module, %__MODULE__{} = state, env), do: {nil, state, env}
 
+  def add_use(module, %__MODULE__{} = state, env) when is_atom(module) and not is_nil(module) do
+    update_in(state.uses[env.module], &Enum.uniq([module | &1 || []]))
+  end
+
+  def add_use(_module, %__MODULE__{} = state, _env), do: state
+
   def register_doc(%__MODULE__{} = state, env, :moduledoc, doc_arg) do
     current_module = env.module
     doc_arg_formatted = format_doc_arg(doc_arg)
diff --git a/lib/elixir_sense/core/metadata.ex b/lib/elixir_sense/core/metadata.ex
index 72192db8..97ca4356 100644
--- a/lib/elixir_sense/core/metadata.ex
+++ b/lib/elixir_sense/core/metadata.ex
@@ -25,6 +25,7 @@ defmodule ElixirSense.Core.Metadata do
           specs: ElixirSense.Core.Compiler.State.specs_t(),
           structs: ElixirSense.Core.Compiler.State.structs_t(),
           records: ElixirSense.Core.Compiler.State.records_t(),
+          uses: %{optional(module) => [module]},
           error: nil | term,
           first_alias_positions: map(),
           moduledoc_positions: map()
@@ -41,6 +42,7 @@ defmodule ElixirSense.Core.Metadata do
             specs: %{},
             structs: %{},
             records: %{},
+            uses: %{},
             error: nil,
             first_alias_positions: %{},
             moduledoc_positions: %{}
@@ -62,6 +64,7 @@ defmodule ElixirSense.Core.Metadata do
       specs: acc.specs,
       structs: acc.structs,
       records: acc.records,
+      uses: acc.uses,
       mods_funs_to_positions: acc.mods_funs_to_positions,
       lines_to_env: acc.lines_to_env,
       vars_info_per_scope_id: acc.vars_info_per_scope_id,
diff --git a/lib/elixir_sense/core/parser.ex b/lib/elixir_sense/core/parser.ex
index aaade4eb..462b6bf4 100644
--- a/lib/elixir_sense/core/parser.ex
+++ b/lib/elixir_sense/core/parser.ex
@@ -190,6 +190,7 @@ defmodule ElixirSense.Core.Parser do
       specs: acc.specs,
       structs: acc.structs,
       records: acc.records,
+      uses: acc.uses,
       mods_funs_to_positions: acc.mods_funs_to_positions,
       cursor_env: acc.cursor_env,
       closest_env: acc.closest_env,
diff --git a/lib/elixir_sense/providers/definition/locator.ex b/lib/elixir_sense/providers/definition/locator.ex
index be2a3fe8..36ef6935 100644
--- a/lib/elixir_sense/providers/definition/locator.ex
+++ b/lib/elixir_sense/providers/definition/locator.ex
@@ -250,19 +250,47 @@ defmodule ElixirSense.Providers.Definition.Locator do
 
         case fn_definition do
           nil ->
-            Location.find_mod_fun_source(mod, fun, call_arity)
+            # Try to find function in __using__ macro before giving up and pointing to the macro use
+            case find_function_in_module_using_macro(mod, fun, metadata) do
+              %Location{file: file} = location when not is_nil(file) ->
+                location
+
+              _ ->
+                Location.find_mod_fun_source(mod, fun, call_arity)
+            end
 
           %ModFunInfo{} = info ->
             {{line, column}, {end_line, end_column}} = Location.info_to_range(info)
 
-            %Location{
-              file: nil,
-              type: ModFunInfo.get_category(info),
-              line: line,
-              column: column,
-              end_line: end_line,
-              end_column: end_column
-            }
+            if ModFunInfo.get_category(info) in [:function, :macro] do
+              # First try to use find_function_in_module_using_macro for external modules
+              # This is needed when the function is defined in a different file via __using__
+              case find_function_in_module_using_macro(mod, fun, metadata) do
+                %Location{file: file} = location when not is_nil(file) ->
+                  location
+
+                _ ->
+                  find_function_in_using_macro(
+                    metadata,
+                    env,
+                    line,
+                    column,
+                    end_line,
+                    end_column,
+                    fun,
+                    info
+                  )
+              end
+            else
+              %Location{
+                file: nil,
+                type: ModFunInfo.get_category(info),
+                line: line,
+                column: column,
+                end_line: end_line,
+                end_column: end_column
+              }
+            end
         end
 
       {mod, fun, true, :type} ->
@@ -313,4 +341,129 @@ defmodule ElixirSense.Providers.Definition.Locator do
       _ -> nil
     end
   end
+
+  defp resolve_use_module({:__aliases__, _, parts}, env) do
+    [head | tail] = parts
+
+    case Keyword.fetch(env.aliases, Module.concat(Elixir, head)) do
+      {:ok, aliased_mod} ->
+        Module.concat([aliased_mod | tail])
+
+      :error ->
+        Module.concat(parts)
+    end
+  end
+
+  defp resolve_use_module(atom, _env) when is_atom(atom), do: atom
+  defp resolve_use_module(_, _), do: nil
+
+  defp find_function_in_module_using_macro(mod, fun, metadata) do
+    if Map.has_key?(metadata.mods_funs_to_positions, {mod, nil, nil}) do
+      # Module is in the current source - use metadata.uses
+      used_modules = Map.get(metadata.uses, mod, [])
+
+      Enum.find_value(used_modules, fn used_module ->
+        search_in_using_macro(used_module, fun)
+      end)
+    else
+      # Module is external - read the file contents and parse it
+      with file when not is_nil(file) <- get_module_source_file(mod),
+           {:ok, content} <- File.read(file) do
+        external_metadata = Parser.parse_string(content, false, false, nil)
+        used_modules = Map.get(external_metadata.uses, mod, [])
+
+        Enum.find_value(used_modules, fn used_module ->
+          search_in_using_macro(used_module, fun)
+        end)
+      else
+        _ -> nil
+      end
+    end
+  end
+
+  defp get_module_source_file(mod) do
+    compile_info = mod.__info__(:compile)
+    source = Keyword.get(compile_info, :source)
+    if source, do: to_string(source)
+  catch
+    _, _ -> nil
+  end
+
+  defp search_in_using_macro(module, fun) do
+    case Location.find_mod_fun_source(module, :__using__, :any) do
+      %Location{file: file, line: using_line, column: using_col} when not is_nil(file) ->
+        find_function_def_in_using_macro_source(file, using_line, using_col, fun)
+
+      _ ->
+        nil
+    end
+  end
+
+  defp find_function_def_in_using_macro_source(file, using_line, using_col, fun) do
+    content = File.read!(file)
+    {_, suffix} = Source.split_at(content, using_line, using_col)
+    regex = ~r/def\s+(#{Regex.escape(Atom.to_string(fun))}\b)/
+
+    case Regex.run(regex, suffix, return: :index) do
+      [_entire_match, {fun_offset, _fun_len}] ->
+        {line_offset, col_offset} = calculate_offset(suffix, fun_offset)
+        target_line = using_line + line_offset
+        target_column = if line_offset == 0, do: using_col + col_offset, else: 1 + col_offset
+
+        %Location{
+          file: file,
+          type: :function,
+          line: target_line,
+          column: target_column,
+          end_line: target_line,
+          end_column: target_column
+        }
+
+      nil ->
+        nil
+    end
+  end
+
+  defp calculate_offset(suffix, fun_offset) do
+    suffix
+    |> String.slice(0, fun_offset)
+    |> Source.split_lines()
+    |> then(fn lines -> {length(lines) - 1, String.length(List.last(lines) || "")} end)
+  end
+
+  defp fallback_location(line, column, end_line, end_column, info) do
+    %Location{
+      file: nil,
+      type: if(info, do: ModFunInfo.get_category(info), else: :function),
+      line: line,
+      column: column,
+      end_line: end_line,
+      end_column: end_column
+    }
+  end
+
+  defp find_function_in_using_macro(metadata, env, line, column, end_line, end_column, fun, info) do
+    # This might be a function defined via `use`
+    # We need to find the `use` statement and the module being used
+    source_line = Source.split_lines(metadata.source) |> Enum.at(line - 1)
+
+    used_module =
+      case Code.string_to_quoted(source_line) do
+        {:ok, {:use, _, [module_ast | _]}} ->
+          resolve_use_module(module_ast, env)
+
+        _ ->
+          nil
+      end
+
+    case used_module && Location.find_mod_fun_source(used_module, :__using__, :any) do
+      %Location{file: file, line: using_line, column: using_col} = using_location
+      when not is_nil(file) ->
+        find_function_def_in_using_macro_source(file, using_line, using_col, fun) ||
+          using_location
+
+      _ ->
+        fallback_location(line, column, end_line, end_column, info)
+    end
+  end
 end
diff --git a/test/elixir_sense/providers/definition/locator_test.exs b/test/elixir_sense/providers/definition/locator_test.exs
new file mode 100644
index 00000000..90c90a4f
--- /dev/null
+++ b/test/elixir_sense/providers/definition/locator_test.exs
@@ -0,0 +1,252 @@
+defmodule ElixirSense.Providers.Definition.LocatorTest.MyBehaviour do
+  defmacro __using__(_opts) do
+    quote do
+      def my_function(), do: :ok
+    end
+  end
+end
+
+defmodule ElixirSense.Providers.Definition.LocatorTest.ModUsingBehaviour do
+  use ElixirSense.Providers.Definition.LocatorTest.MyBehaviour
+end
+
+defmodule ElixirSense.Providers.Definition.LocatorTest do
+  use ExUnit.Case, async: true
+  alias ElixirSense.Providers.Definition.Locator
+
+  test "finds definition of function defined in __using__ macro" do
+    code = """
+    defmodule MyModule do
+      use ElixirSense.Providers.Definition.LocatorTest.MyBehaviour
+
+      def test do
+        my_function()
+      end
+    end
+    """
+
+    {line, column} = {5, 5}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "finds definition of function defined in __using__ macro via another module" do
+    code = """
+    defmodule MyModule do
+      def test do
+        ElixirSense.Providers.Definition.LocatorTest.ModUsingBehaviour.my_function()
+      end
+    end
+    """
+
+    {line, column} = {3, 70}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "finds definition of function defined in __using__ macro from external file" do
+    code = """
+    defmodule MyModule do
+      use ElixirSenseExample.UsingMacroExample
+
+      def test do
+        using_macro_function()
+      end
+    end
+    """
+
+    {line, column} = {5, 5}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.file =~ "using_macro_example.ex"
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "finds definition of function defined in __using__ macro via module from external file" do
+    code = """
+    defmodule MyModule do
+      def test do
+        ElixirSenseExample.ModuleUsingMacroExample.using_macro_function()
+      end
+    end
+    """
+
+    {line, column} = {3, 49}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.file =~ "using_macro_example.ex"
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "finds definition when using Kernel.use qualified call" do
+    code = """
+    defmodule MyModule do
+      Kernel.use(ElixirSense.Providers.Definition.LocatorTest.MyBehaviour)
+
+      def test do
+        my_function()
+      end
+    end
+    """
+
+    {line, column} = {5, 5}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "finds definition when using module alias" do
+    code = """
+    defmodule MyModule do
+      alias ElixirSense.Providers.Definition.LocatorTest.MyBehaviour
+
+      use MyBehaviour
+
+      def test do
+        my_function()
+      end
+    end
+    """
+
+    {line, column} = {7, 5}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "finds definition when using module with custom alias" do
+    code = """
+    defmodule MyModule do
+      alias ElixirSense.Providers.Definition.LocatorTest.MyBehaviour, as: MyB
+
+      use MyB
+
+      def test do
+        my_function()
+      end
+    end
+    """
+
+    {line, column} = {7, 5}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  test "no false positive when local function named use exists" do
+    code = """
+    defmodule MyModule do
+      defp use(_module), do: nil
+
+      use ElixirSense.Providers.Definition.LocatorTest.MyBehaviour
+
+      def test do
+        use(SomeModule)
+        my_function()
+      end
+    end
+    """
+
+    {line, column} = {8, 5}
+
+    location = Locator.definition(code, line, column)
+
+    assert location != nil
+    assert location.type == :function
+    # should find the function from __using__ macro, not be confused by local use/1
+    assert location.line == 4
+    assert location.column == 11
+  end
+
+  describe "modules in external file" do
+    test "finds definition via external module using Kernel.use qualified call" do
+      code = """
+      defmodule MyModule do
+        def test do
+          ElixirSenseExample.ModuleUsingKernelUse.using_macro_function()
+        end
+      end
+      """
+
+      {line, column} = {3, 45}
+
+      location = Locator.definition(code, line, column)
+
+      assert location != nil
+      assert location.type == :function
+      assert location.file =~ "using_macro_example.ex"
+      assert location.line == 4
+      assert location.column == 11
+    end
+
+    test "finds definition via external module using aliased module" do
+      code = """
+      defmodule MyModule do
+        def test do
+          ElixirSenseExample.ModuleUsingAlias.using_macro_function()
+        end
+      end
+      """
+
+      {line, column} = {3, 42}
+
+      location = Locator.definition(code, line, column)
+
+      assert location != nil
+      assert location.type == :function
+      assert location.file =~ "using_macro_example.ex"
+      assert location.line == 4
+      assert location.column == 11
+    end
+
+    test "finds definition via external module that has other local functions" do
+      code = """
+      defmodule MyModule do
+        def test do
+          ElixirSenseExample.ModuleWithLocalUse.using_macro_function()
+        end
+      end
+      """
+
+      {line, column} = {3, 44}
+
+      location = Locator.definition(code, line, column)
+
+      assert location != nil
+      assert location.type == :function
+      assert location.file =~ "using_macro_example.ex"
+      assert location.line == 4
+      assert location.column == 11
+    end
+  end
+end
diff --git a/test/support/using_macro_example.ex b/test/support/using_macro_example.ex
new file mode 100644
index 00000000..593b8ecc
--- /dev/null
+++ b/test/support/using_macro_example.ex
@@ -0,0 +1,37 @@
+defmodule ElixirSenseExample.UsingMacroExample do
+  defmacro __using__(_opts) do
+    quote do
+      def using_macro_function(), do: :ok
+    end
+  end
+end
+
+defmodule ElixirSenseExample.ModuleUsingMacroExample do
+  use ElixirSenseExample.UsingMacroExample
+end
+
+# Module using Kernel.use qualified call (tests reviewer concern #1)
+defmodule ElixirSenseExample.ModuleUsingKernelUse do
+  Kernel.use(ElixirSenseExample.UsingMacroExample)
+end
+
+# Module using aliased module (tests reviewer concern #2)
+defmodule ElixirSenseExample.ModuleUsingAlias do
+  alias ElixirSenseExample.UsingMacroExample, as: MyMacro
+
+  use MyMacro
+end
+
+# Module with local function named use (tests reviewer concern #3)
+# This tests that a local function named `use` doesn't confuse use tracking
+defmodule ElixirSenseExample.ModuleWithLocalUse do
+  # This local function exists but won't shadow the Kernel.use macro
+  # The test verifies that proper AST expansion correctly identifies Kernel.use
+  defp my_use(_module), do: nil
+
+  use ElixirSenseExample.UsingMacroExample
+
+  def call_local_use do
+    my_use(SomeModule)
+  end
+end