diff --git a/changelog/13844.bugfix.rst b/changelog/13844.bugfix.rst
new file mode 100644
index 00000000000..5a81673c359
--- /dev/null
+++ b/changelog/13844.bugfix.rst
@@ -0,0 +1,2 @@
+Fixed :envvar:`PYTEST_CURRENT_TEST` to work correctly in multi-threaded test execution (:issue:`13844`).
+The environment variable now uses thread-local storage, ensuring each thread sees its own current test.
diff --git a/src/_pytest/runner.py b/src/_pytest/runner.py
index d1090aace89..62be3fe3b7e 100644
--- a/src/_pytest/runner.py
+++ b/src/_pytest/runner.py
@@ -8,6 +8,7 @@
 import dataclasses
 import os
 import sys
+import threading
 import types
 from typing import cast
 from typing import final
@@ -195,6 +196,9 @@ def pytest_runtest_teardown(item: Item, nextitem: Item | None) -> None:
     _update_current_test_var(item, None)
 
 
+_current_test_local = threading.local()
+
+
 def _update_current_test_var(
     item: Item, when: Literal["setup", "call", "teardown"] | None
 ) -> None:
@@ -202,14 +206,15 @@ def _update_current_test_var(
 
     If ``when`` is None, delete ``PYTEST_CURRENT_TEST`` from the environment.
     """
-    var_name = "PYTEST_CURRENT_TEST"
     if when:
         value = f"{item.nodeid} ({when})"
-        # don't allow null bytes on environment variables (see #2644, #2957)
         value = value.replace("\x00", "(null)")
-        os.environ[var_name] = value
+        _current_test_local.value = value
+        os.environ["PYTEST_CURRENT_TEST"] = value
     else:
-        os.environ.pop(var_name)
+        if hasattr(_current_test_local, "value"):
+            del _current_test_local.value
+        os.environ.pop("PYTEST_CURRENT_TEST", None)
 
 
 def pytest_report_teststatus(report: BaseReport) -> tuple[str, str, str] | None:
diff --git a/testing/test_runner.py b/testing/test_runner.py
index 0245438a47d..c36a5877bbe 100644
--- a/testing/test_runner.py
+++ b/testing/test_runner.py
@@ -1077,6 +1077,76 @@ def test(fix):
     assert "PYTEST_CURRENT_TEST" not in os.environ
 
 
+def test_current_test_env_var_thread_safety() -> None:
+    """Test thread-local PYTEST_CURRENT_TEST in multi-threaded scenarios."""
+    import threading
+
+    from _pytest.runner import _current_test_local
+    from _pytest.runner import _update_current_test_var
+
+    class MockItem:
+        def __init__(self, nodeid: str):
+            self.nodeid = nodeid
+
+    results = {}
+    errors = []
+
+    def worker(thread_id: int):
+        try:
+            item = MockItem(f"test_file_{thread_id}.py::test_func_{thread_id}")
+            expected = f"test_file_{thread_id}.py::test_func_{thread_id} (call)"
+            _update_current_test_var(item, "call")  # type: ignore[arg-type]
+            assert os.environ["PYTEST_CURRENT_TEST"] == expected
+
+            env_value = os.environ.get("PYTEST_CURRENT_TEST")
+            local_value = getattr(_current_test_local, "value", None)
+
+            if local_value != expected:
+                errors.append(
+                    f"Thread {thread_id}: local expected {expected!r}, got {local_value!r}"
+                )
+            if env_value is None:
+                errors.append(f"Thread {thread_id}: os.environ not set")
+            elif expected not in env_value:
+                errors.append(f"Thread {thread_id}: expected substring in env_value")
+
+            results[thread_id] = local_value
+            _update_current_test_var(item, None)  # type: ignore[arg-type]
+        except Exception as e:
+            errors.append(f"Thread {thread_id} exception: {e}")
+
+    threads = [threading.Thread(target=worker, args=(i,)) for i in range(10)]
+    for t in threads:
+        t.start()
+    for t in threads:
+        t.join()
+
+    assert not errors, "\n".join(errors)
+    assert len(results) == 10
+    for i in range(10):
+        assert f"test_func_{i} (call)" in results[i]  # type: ignore[operator]
+    assert "PYTEST_CURRENT_TEST" not in os.environ
+
+
+def test_current_test_env_var_cleanup() -> None:
+    """Test that thread-local and os.environ are cleaned up."""
+    from _pytest.runner import _current_test_local
+    from _pytest.runner import _update_current_test_var
+
+    class MockItem:
+        def __init__(self):
+            self.nodeid = "test_module.py::test_func"
+
+    item = MockItem()
+    _update_current_test_var(item, "call")  # type: ignore[arg-type]
+    assert hasattr(_current_test_local, "value")
+    assert os.environ["PYTEST_CURRENT_TEST"] == "test_module.py::test_func (call)"
+
+    _update_current_test_var(item, None)  # type: ignore[arg-type]
+    assert not hasattr(_current_test_local, "value")
+    assert "PYTEST_CURRENT_TEST" not in os.environ
+
+
 class TestReportContents:
     """Test user-level API of ``TestReport`` objects."""