diff --git a/changelog/11706.bugfix.rst b/changelog/11706.bugfix.rst
new file mode 100644
index 000000000..a86db5ef6
--- /dev/null
+++ b/changelog/11706.bugfix.rst
@@ -0,0 +1,4 @@
+Fix reporting of teardown errors in higher-scoped fixtures when using `--maxfail` or `--stepwise`.
+
+Originally added in pytest 8.0.0, but reverted in 8.0.2 due to a regression in pytest-xdist.
+This regression was fixed in pytest-xdist 3.6.1.
diff --git a/src/_pytest/runner.py b/src/_pytest/runner.py
index 5b7cd3e1d..dfefa73b7 100644
--- a/src/_pytest/runner.py
+++ b/src/_pytest/runner.py
@@ -134,6 +134,10 @@ def runtestprotocol(
             show_test_item(item)
         if not item.config.getoption("setuponly", False):
             reports.append(call_and_report(item, "call", log))
+    # If the session is about to fail or stop, teardown everything - this is
+    # necessary to correctly report fixture teardown errors (see #11706)
+    if item.session.shouldfail or item.session.shouldstop:
+        nextitem = None
     reports.append(call_and_report(item, "teardown", log, nextitem=nextitem))
     # After all teardown hooks have been called
     # want funcargs and request info to go away.
diff --git a/testing/test_runner.py b/testing/test_runner.py
index 6bd4a045d..436ce2f10 100644
--- a/testing/test_runner.py
+++ b/testing/test_runner.py
@@ -1216,3 +1216,53 @@ def test_pytest_version_env_var(pytester: Pytester, monkeypatch: MonkeyPatch) ->
     result = pytester.runpytest_inprocess()
     assert result.ret == ExitCode.OK
     assert os.environ["PYTEST_VERSION"] == "old version"
+
+
+def test_teardown_session_failed(pytester: Pytester) -> None:
+    """Test that higher-scoped fixture teardowns run in the context of the last
+    item after the test session bails early due to --maxfail.
+
+    Regression test for #11706.
+    """
+    pytester.makepyfile(
+        """
+        import pytest
+
+        @pytest.fixture(scope="module")
+        def baz():
+            yield
+            pytest.fail("This is a failing teardown")
+
+        def test_foo(baz):
+            pytest.fail("This is a failing test")
+
+        def test_bar(): pass
+        """
+    )
+    result = pytester.runpytest("--maxfail=1")
+    result.assert_outcomes(failed=1, errors=1)
+
+
+def test_teardown_session_stopped(pytester: Pytester) -> None:
+    """Test that higher-scoped fixture teardowns run in the context of the last
+    item after the test session bails early due to --stepwise.
+
+    Regression test for #11706.
+    """
+    pytester.makepyfile(
+        """
+        import pytest
+
+        @pytest.fixture(scope="module")
+        def baz():
+            yield
+            pytest.fail("This is a failing teardown")
+
+        def test_foo(baz):
+            pytest.fail("This is a failing test")
+
+        def test_bar(): pass
+        """
+    )
+    result = pytester.runpytest("--stepwise")
+    result.assert_outcomes(failed=1, errors=1)