diff --git a/Lib/test/test_urllib2.py b/Lib/test/test_urllib2.py
index 7efbc81a16096a6..fd57cc83921c1b6 100644
--- a/Lib/test/test_urllib2.py
+++ b/Lib/test/test_urllib2.py
@@ -1735,6 +1735,27 @@ def test_proxy_basic_auth(self):
                               "proxy.example.com:3128",
                               )
 
+    def test_proxy_basic_auth_ignores_direct_407(self):
+        # gh-158907: a direct HTTP origin that returns 407 must not receive
+        # credentials registered for the same authority over HTTPS.
+        opener = OpenerDirector()
+        opener.add_handler(urllib.request.ProxyHandler({}))
+        password_manager = urllib.request.HTTPPasswordMgr()
+        auth_handler = urllib.request.ProxyBasicAuthHandler(password_manager)
+        realm = "test-realm"
+        http_handler = MockHTTPHandlerRedirect(
+            407, 'Proxy-Authenticate: Basic realm="%s"\r\n\r\n' % realm)
+        opener.add_handler(auth_handler)
+        opener.add_handler(http_handler)
+
+        password_manager.add_password(
+            realm, "https://example.com/", "victim-user", "victim-secret")
+        opener.open("http://example.com/resource")
+
+        self.assertEqual(len(http_handler.requests), 1)
+        self.assertFalse(
+            http_handler.requests[0].has_header("Proxy-authorization"))
+
     def test_basic_and_digest_auth_handlers(self):
         # HTTPDigestAuthHandler raised an exception if it couldn't handle a 40*
         # response (https://bugs.python.org/issue1479302), where it should instead
diff --git a/Lib/urllib/request.py b/Lib/urllib/request.py
index 59ed4a7140d59c6..83e1d6f51f76d46 100644
--- a/Lib/urllib/request.py
+++ b/Lib/urllib/request.py
@@ -1048,6 +1048,9 @@ class ProxyBasicAuthHandler(AbstractBasicAuthHandler, BaseHandler):
     auth_header = 'Proxy-authorization'
 
     def http_error_407(self, req, fp, code, msg, headers):
+        # gh-158907: a 407 from a direct origin is not a proxy challenge
+        if not req.has_proxy() and not req._tunnel_host:
+            return None
         # http_error_auth_reqed requires that there is no userinfo component in
         # authority.  Assume there isn't one, since urllib.request does not (and
         # should not, RFC 3986 s. 3.2.1) support requests for URLs containing
diff --git a/Misc/NEWS.d/next/Security/2026-10-07-13-30-00.gh-issue-158907.k4Qm2p.rst b/Misc/NEWS.d/next/Security/2026-10-07-13-30-00.gh-issue-158907.k4Qm2p.rst
new file mode 100644
index 000000000000000..9b635298c3560ce
--- /dev/null
+++ b/Misc/NEWS.d/next/Security/2026-10-07-13-30-00.gh-issue-158907.k4Qm2p.rst
@@ -0,0 +1,4 @@
+:class:`~urllib.request.ProxyBasicAuthHandler` no longer sends credentials
+in response to ``407`` from a direct origin. A scheme-less lookup against
+the origin host could match passwords stored for an HTTPS URL and retry
+the cleartext request with ``Proxy-Authorization``.