diff --git a/AUTHORS b/AUTHORS
index 1d1af001595..0860485c9f2 100644
--- a/AUTHORS
+++ b/AUTHORS
@@ -261,6 +261,7 @@ Junhao Liao
 Jurko Gospodnetić
 Justice Ndou
 Justyna Janczyszyn
+jwalith4418-Mj
 Kale Kundert
 Kamran Ahmad
 Kenny Y
diff --git a/changelog/7692.bugfix.rst b/changelog/7692.bugfix.rst
new file mode 100644
index 00000000000..192f24058a9
--- /dev/null
+++ b/changelog/7692.bugfix.rst
@@ -0,0 +1 @@
+Custom test items now respect ``__tracebackhide__`` when reporting failures, unless ``--full-trace`` is used.
diff --git a/src/_pytest/nodes.py b/src/_pytest/nodes.py
index 2b510907122..19c1e98b490 100644
--- a/src/_pytest/nodes.py
+++ b/src/_pytest/nodes.py
@@ -424,7 +424,7 @@ def getparent(self, cls: type[_NodeType]) -> _NodeType | None:
         return None
 
     def _traceback_filter(self, excinfo: ExceptionInfo[BaseException]) -> Traceback:
-        return excinfo.traceback
+        return excinfo.traceback.filter(excinfo)
 
     def _repr_failure_py(
         self,
diff --git a/testing/test_nodes.py b/testing/test_nodes.py
index e976b9e6f11..5bf56794824 100644
--- a/testing/test_nodes.py
+++ b/testing/test_nodes.py
@@ -162,3 +162,43 @@ def test_show_wrong_path(private_dir):
     )
     result = pytester.runpytest()
     result.stdout.fnmatch_lines([str(p) + ":*: AssertionError", "*1 failed in *"])
+
+
+@pytest.mark.parametrize("fulltrace", [False, True])
+@pytest.mark.parametrize(
+    "failure", ["raise ValueError('custom failure')", "pytest.fail('custom failure')"]
+)
+def test_custom_item_hidden_traceback(
+    pytester: Pytester, fulltrace: bool, failure: str
+) -> None:
+    pytester.makeconftest(
+        f"""
+        import pytest
+
+        def hidden_helper():
+            __tracebackhide__ = True
+            {failure}
+
+        class CustomItem(pytest.Item):
+            def runtest(self):
+                hidden_helper()
+
+        class CustomFile(pytest.File):
+            def collect(self):
+                yield CustomItem.from_parent(self, name="custom")
+
+        def pytest_collect_file(file_path, parent):
+            if file_path.suffix == ".custom":
+                return CustomFile.from_parent(parent, path=file_path)
+        """
+    )
+    pytester.makefile(".custom", test_custom="")
+    args = ["--tb=long"]
+    if fulltrace:
+        args.append("--full-trace")
+    result = pytester.runpytest(*args)
+    result.assert_outcomes(failed=1)
+    output = result.stdout.str()
+    assert "custom failure" in output
+    assert "def runtest(self):" in output
+    assert ("__tracebackhide__ = True" in output) == fulltrace