Suggested edits by Bruno.

Moved fix to TestCaseFunction.setup. Added myself to AUTHORS and added entry to CHANGELOG

AUTHORS

@@ -46,6 +46,7 @@ Jason R. Coombs
 Jurko Gospodnetić
 Katarzyna Jachim
 Kevin Cox
+Lee Kamentsky
 Maciek Fijalkowski
 Maho
 Marc Schlaich

CHANGELOG

@@ -1,6 +1,9 @@
 2.8.3.dev
 ---------
 
+- fix #1169: add __name__ attribute to testcases in TestCaseFunction to
+  support the @unittest.skip decorator on functions and methods.
+
 - fix #1035: collecting tests if test module level obj has __getattr__().
   Thanks Suor for the report and Bruno Oliveira / Tom Viner for the PR.
 

_pytest/unittest.py

@@ -69,6 +69,16 @@ class TestCaseFunction(pytest.Function):
 
     def setup(self):
         self._testcase = self.parent.obj(self.name)
+        #
+        # See issue #1169
+        #
+        # The @unittest.skip decorator calls functools.wraps(self._testcase)
+        # The call to functools.wraps() fails unless self._testcase
+        # has a __name__ attribute. This is usually automatically supplied
+        # if the test is a function or method, but we need to add manually
+        # here.
+        #
+        setattr(self._testcase, "__name__", self.name)
         self._obj = getattr(self._testcase, self.name)
         if hasattr(self._testcase, 'setup_method'):
             self._testcase.setup_method(self._obj)
@@ -134,7 +144,6 @@ class TestCaseFunction(pytest.Function):
         pass
 
     def runtest(self):
-        setattr(self._testcase, "__name__", self.name)
         self._testcase(result=self)
 
     def _prunetraceback(self, excinfo):

testing/test_unittest.py

@@ -719,6 +719,7 @@ def test_unittest_raise_skip_issue748(testdir):
         *1 skipped*
     """)
 
+@pytest.mark.skipif("sys.version_info < (2,7)")
 def test_unittest_skip_issue1169(testdir):
     testpath = testdir.makepyfile(test_foo="""
         import unittest