diff --git a/changelog/7940.bugfix.rst b/changelog/7940.bugfix.rst
new file mode 100644
index 00000000000..99845153ace
--- /dev/null
+++ b/changelog/7940.bugfix.rst
@@ -0,0 +1 @@
+Fixed cleanup of temporary directories failing when subdirectories have their execute permission removed.
diff --git a/src/_pytest/pathlib.py b/src/_pytest/pathlib.py
index 291bdf4ecbf..8258e64cb1d 100644
--- a/src/_pytest/pathlib.py
+++ b/src/_pytest/pathlib.py
@@ -24,6 +24,7 @@
 from pathlib import PurePath
 from posixpath import sep as posix_sep
 import shutil
+import stat
 import sys
 import types
 from types import ModuleType
@@ -69,6 +70,29 @@ def get_lock_path(path: _AnyPurePath) -> _AnyPurePath:
     return path.joinpath(".lock")
 
 
+def _chmod_rwx(p: str) -> bool:
+    """Grant owner sufficient permissions for deletion.
+
+    Directories get ``S_IRWXU`` (read+write+exec for traversal).
+    Regular files get ``S_IRUSR | S_IWUSR`` only, to avoid making
+    non-executable files executable as a side effect.
+
+    Returns True if permissions were actually changed, False if they were
+    already sufficient or couldn't be changed.
+    """
+    try:
+        old_mode = os.stat(p).st_mode
+        perm_mode = stat.S_IMODE(old_mode)
+        bits = stat.S_IRWXU if stat.S_ISDIR(old_mode) else stat.S_IRUSR | stat.S_IWUSR
+        new_mode = perm_mode | bits
+        if perm_mode == new_mode:
+            return False
+        os.chmod(p, new_mode)
+    except OSError:
+        return False
+    return True
+
+
 def on_rm_rf_error(
     func: Callable[..., Any] | None,
     path: str,
@@ -97,32 +121,47 @@ def on_rm_rf_error(
         )
         return False
 
+    p = Path(path)
+
+    if func in (os.open, os.scandir):
+        # Directory traversal failed (e.g. missing S_IXUSR). Fix permissions
+        # on the path and its parent (bounded by start_path), then remove it
+        # ourselves since rmtree skips entries after the error handler returns.
+        # See: https://github.com/pytest-dev/pytest/issues/7940
+        parent_changed = False
+        parent = p.parent
+        if parent not in (p, start_path):
+            parent_changed = _chmod_rwx(str(parent))
+        path_changed = _chmod_rwx(path)
+        if not (parent_changed or path_changed):
+            return False
+        if p.is_dir():
+            rm_rf(p)
+        else:
+            try:
+                os.unlink(path)
+            except OSError:
+                return False
+        return True
+
     if func not in (os.rmdir, os.remove, os.unlink):
-        if func not in (os.open,):
-            warnings.warn(
-                PytestWarning(
-                    f"(rm_rf) unknown function {func} when removing {path}:\n{type(exc)}: {exc}"
-                )
+        warnings.warn(
+            PytestWarning(
+                f"(rm_rf) unknown function {func} when removing {path}:\n{type(exc)}: {exc}"
             )
+        )
         return False
 
     # Chmod + retry.
-    import stat
-
-    def chmod_rw(p: str) -> None:
-        mode = os.stat(p).st_mode
-        os.chmod(p, mode | stat.S_IRUSR | stat.S_IWUSR)
-
     # For files, we need to recursively go upwards in the directories to
-    # ensure they all are also writable.
-    p = Path(path)
+    # ensure they all are also accessible and writable.
     if p.is_file():
-        for parent in p.parents:
-            chmod_rw(str(parent))
+        for parent in p.parents:  # pragma: no branch
+            _chmod_rwx(str(parent))
             # Stop when we reach the original path passed to rm_rf.
             if parent == start_path:
                 break
-    chmod_rw(str(path))
+    _chmod_rwx(str(path))
 
     func(path)
     return True
diff --git a/testing/test_tmpdir.py b/testing/test_tmpdir.py
index 610de9c5fd6..717fda99e4c 100644
--- a/testing/test_tmpdir.py
+++ b/testing/test_tmpdir.py
@@ -14,6 +14,7 @@
 from _pytest import pathlib
 from _pytest.config import Config
 from _pytest.monkeypatch import MonkeyPatch
+from _pytest.pathlib import _chmod_rwx
 from _pytest.pathlib import cleanup_numbered_dir
 from _pytest.pathlib import create_cleanup_lock
 from _pytest.pathlib import make_numbered_dir
@@ -522,6 +523,10 @@ def test_removal_accepts_lock(self, tmp_path):
         assert dir.is_dir()
 
 
+def _raise_oserror(*args: object, **kwargs: object) -> None:
+    raise OSError("simulated failure")
+
+
 class TestRmRf:
     def test_rm_rf(self, tmp_path):
         adir = tmp_path / "adir"
@@ -566,6 +571,25 @@ def test_rm_rf_with_read_only_directory(self, tmp_path):
 
         assert not adir.is_dir()
 
+    @pytest.mark.skipif(not hasattr(os, "getuid"), reason="unix permissions")
+    def test_rm_rf_with_no_exec_permission_directories(self, tmp_path):
+        """Ensure rm_rf can remove directories without S_IXUSR (#7940).
+
+        This is the exact scenario from the original issue: nested directories
+        and files with all permissions stripped.
+        """
+        p = tmp_path / "foo" / "bar" / "baz"
+        p.parent.mkdir(parents=True)
+        p.touch(mode=0)
+        for parent in p.parents:  # pragma: no branch
+            if parent == tmp_path:
+                break
+            parent.chmod(mode=0)
+
+        rm_rf(tmp_path / "foo")
+
+        assert not (tmp_path / "foo").exists()
+
     def test_on_rm_rf_error(self, tmp_path: Path) -> None:
         adir = tmp_path / "dir"
         adir.mkdir()
@@ -593,17 +617,125 @@ def test_on_rm_rf_error(self, tmp_path: Path) -> None:
             on_rm_rf_error(None, str(fn), exc_info3, start_path=tmp_path)
             assert fn.is_file()
 
-        # ignored function
-        with warnings.catch_warnings(record=True) as w:
-            exc_info4 = PermissionError()
-            on_rm_rf_error(os.open, str(fn), exc_info4, start_path=tmp_path)
-            assert fn.is_file()
-            assert not [x.message for x in w]
-
+        # os.unlink PermissionError is handled (chmod + retry)
         exc_info5 = PermissionError()
         on_rm_rf_error(os.unlink, str(fn), exc_info5, start_path=tmp_path)
         assert not fn.is_file()
 
+    def test_on_rm_rf_error_os_open_handles_file(self, tmp_path: Path) -> None:
+        """os.open PermissionError on a file is handled by fixing
+        permissions and removing it (#7940)."""
+        adir = tmp_path / "dir"
+        adir.mkdir()
+        fn = adir / "foo.txt"
+        fn.touch()
+        self.chmod_r(fn)
+
+        with warnings.catch_warnings(record=True) as w:
+            exc_info = PermissionError()
+            on_rm_rf_error(os.open, str(fn), exc_info, start_path=tmp_path)
+            assert not fn.exists()
+            assert not [x.message for x in w]
+
+    @pytest.mark.skipif(not hasattr(os, "getuid"), reason="unix permissions")
+    def test_on_rm_rf_error_os_open_handles_directory(self, tmp_path: Path) -> None:
+        """os.open PermissionError on a directory is handled by fixing
+        permissions and recursively removing it (#7940)."""
+        adir = tmp_path / "dir"
+        adir.mkdir()
+        (adir / "child").mkdir()
+        (adir / "child" / "file.txt").touch()
+        os.chmod(str(adir), 0o600)
+
+        with warnings.catch_warnings(record=True) as w:
+            exc_info = PermissionError()
+            on_rm_rf_error(os.open, str(adir), exc_info, start_path=tmp_path)
+            assert not adir.exists()
+            assert not [x.message for x in w]
+
+    @pytest.mark.skipif(not hasattr(os, "getuid"), reason="unix permissions")
+    def test_on_rm_rf_error_os_open_parent_perms(self, tmp_path: Path) -> None:
+        """When the PermissionError is caused by the *parent* directory lacking
+        S_IXUSR, fixing the parent is sufficient even if the child already has
+        correct permissions."""
+        parent = tmp_path / "parent"
+        parent.mkdir()
+        child = parent / "child"
+        child.mkdir()
+        (child / "file.txt").touch()
+        # Child has full perms, but parent lacks execute -> os.open(child) fails.
+        os.chmod(str(parent), 0o600)
+
+        with warnings.catch_warnings(record=True) as w:
+            exc_info = PermissionError()
+            result = on_rm_rf_error(os.open, str(child), exc_info, start_path=tmp_path)
+            assert result is True
+            assert not child.exists()
+            assert not [x.message for x in w]
+
+    def test_chmod_rwx_returns_false_on_nonexistent_path(self, tmp_path: Path) -> None:
+        """_chmod_rwx returns False when the path doesn't exist (OSError)."""
+        nonexistent = tmp_path / "does_not_exist"
+        assert _chmod_rwx(str(nonexistent)) is False
+
+    def test_chmod_rwx_returns_false_when_already_sufficient(
+        self, tmp_path: Path
+    ) -> None:
+        """_chmod_rwx returns False when permissions are already sufficient."""
+        d = tmp_path / "dir"
+        d.mkdir(mode=0o700)
+        assert _chmod_rwx(str(d)) is False
+
+        f = tmp_path / "file"
+        f.touch(mode=0o600)
+        assert _chmod_rwx(str(f)) is False
+
+    def test_on_rm_rf_error_os_open_returns_false_when_chmod_ineffective(
+        self, tmp_path: Path
+    ) -> None:
+        """os.open handler returns False when neither parent nor path chmod
+        changes anything (recursion guard)."""
+        adir = tmp_path / "dir"
+        adir.mkdir(mode=0o700)
+        exc_info = PermissionError()
+        result = on_rm_rf_error(os.open, str(adir), exc_info, start_path=tmp_path)
+        assert result is False
+        assert adir.exists()
+
+    def test_on_rm_rf_error_os_open_unlink_fails(
+        self, tmp_path: Path, monkeypatch: MonkeyPatch
+    ) -> None:
+        """os.open handler returns False when chmod succeeds but os.unlink
+        still raises OSError (e.g. sandbox or other mechanism)."""
+        fn = tmp_path / "stubborn.txt"
+        fn.touch(mode=0)
+
+        monkeypatch.setattr(os, "unlink", _raise_oserror)
+
+        exc_info = PermissionError()
+        result = on_rm_rf_error(os.open, str(fn), exc_info, start_path=tmp_path)
+        assert result is False
+        assert fn.exists()
+
+    @pytest.mark.skipif(not hasattr(os, "getuid"), reason="unix permissions")
+    def test_on_rm_rf_error_chmod_retry_walks_parents(self, tmp_path: Path) -> None:
+        """The os.rmdir/os.unlink handler walks up through multiple parent
+        directories to fix permissions before retrying."""
+        deep = tmp_path / "a" / "b" / "c"
+        deep.mkdir(parents=True)
+        fn = deep / "file.txt"
+        fn.touch()
+        # Remove write from intermediate dirs (keep exec so traversal works,
+        # but os.unlink needs write on the parent).
+        for parent in fn.parents:  # pragma: no branch
+            if parent == tmp_path:
+                break
+            parent.chmod(0o555)
+
+        exc_info = PermissionError()
+        on_rm_rf_error(os.unlink, str(fn), exc_info, start_path=tmp_path)
+        assert not fn.exists()
+
 
 def attempt_symlink_to(path, to_path):
     """Try to make a symlink from "path" to "to_path", skipping in case this platform