diff --git a/crates/derive-impl/src/pyclass.rs b/crates/derive-impl/src/pyclass.rs
index d892db17ef6..cb097cb71fd 100644
--- a/crates/derive-impl/src/pyclass.rs
+++ b/crates/derive-impl/src/pyclass.rs
@@ -1986,14 +1986,21 @@ where
     while let Some((_, attr)) = iter.peek() {
         // take all cfgs but no py items
         let attr = *attr;
-        let attr_name = if let Some(ident) = attr.get_ident() {
-            ident.to_string()
-        } else {
-            continue;
-        };
-        if attr_name == "cfg" {
-            cfgs.push(attr.clone());
-        } else if ALL_ALLOWED_NAMES.contains(&attr_name.as_str()) {
+        if let Some(ident) = attr.get_ident() {
+            let attr_name = ident.to_string();
+            if attr_name == "cfg" {
+                cfgs.push(attr.clone());
+            } else if ALL_ALLOWED_NAMES.contains(&attr_name.as_str()) {
+                break;
+            }
+        } else if attr
+            .path()
+            .segments
+            .last()
+            .is_some_and(|s| ALL_ALLOWED_NAMES.contains(&s.ident.to_string().as_str()))
+        {
+            // Multi-segment path whose last segment is a py* name (e.g. `vm::pymethod`).
+            // Stop here so the for-loop below can emit a diagnostic with the correct span.
             break;
         }
         iter.next();
@@ -2004,6 +2011,28 @@ where
         let attr_name = if let Some(ident) = attr.get_ident() {
             ident.to_string()
         } else {
+            // Multi-segment path: if the last segment is a known py* name, the user
+            // likely wrote `#[vm::pymethod]` instead of `#[pymethod]`.  Proc-macros
+            // cannot resolve namespace aliases, so the qualified form is never supported.
+            if let Some(last_seg) = attr.path().segments.last() {
+                let last_name = last_seg.ident.to_string();
+                if ALL_ALLOWED_NAMES.contains(&last_name.as_str()) {
+                    let full_path = attr
+                        .path()
+                        .segments
+                        .iter()
+                        .map(|s| s.ident.to_string())
+                        .collect::<Vec<_>>()
+                        .join("::");
+                    bail_span!(
+                        attr,
+                        "found `#[{}]`, use `#[{}]` instead; \
+                         proc-macros cannot resolve namespace aliases",
+                        full_path,
+                        last_name
+                    );
+                }
+            }
             continue;
         };
         if attr_name == "cfg" {
@@ -2044,3 +2073,27 @@ fn parse_vec_ident(
         })?
         .to_string())
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    // Regression test: path-qualified inner attrs like `#[vm::pymethod]` must return an error.
+    // Before the fix, `attrs_to_content_items` looped forever on such attributes.
+    #[test]
+    fn path_qualified_py_attr_returns_error() {
+        let attr: syn::Attribute = syn::parse_quote!(#[vm::pymethod]);
+        let result =
+            attrs_to_content_items(&[attr], |i, name| (i, name));
+        let err = result.expect_err("expected error for path-qualified #[vm::pymethod]");
+        let msg = err.to_string();
+        assert!(
+            msg.contains("vm::pymethod"),
+            "error should mention the full path; got: {msg}"
+        );
+        assert!(
+            msg.contains("pymethod"),
+            "error should mention the unqualified name; got: {msg}"
+        );
+    }
+}
diff --git a/crates/vm/src/lib.rs b/crates/vm/src/lib.rs
index cca5b43457c..a91423c17a6 100644
--- a/crates/vm/src/lib.rs
+++ b/crates/vm/src/lib.rs
@@ -119,3 +119,34 @@ pub use rustpython_literal as literal;
 pub mod __exports {
     pub use paste;
 }
+
+#[cfg(test)]
+mod tests {
+    // Regression test: verify that #[pyclass] and #[pymethod] expand correctly.
+    // Before the fix in attrs_to_content_items (crates/derive-impl/src/pyclass.rs),
+    // any inner attribute with a path prefix (e.g. #[vm::pymethod]) caused an
+    // infinite loop during macro expansion.
+
+    #[pyclass(module = false, name = "TestItem")]
+    #[derive(Debug, PyPayload)]
+    struct TestItem {
+        value: i64,
+    }
+
+    #[pyclass]
+    impl TestItem {
+        #[pymethod]
+        fn value(&self) -> i64 {
+            self.value
+        }
+    }
+
+    #[test]
+    fn pyclass_and_pymethod_expand_correctly() {
+        // Verify the macro-generated code is functional at runtime.
+        // Before the fix, path-qualified inner attrs (e.g. #[vm::pymethod]) caused
+        // an infinite loop during macro expansion.
+        let item = TestItem { value: 42 };
+        assert_eq!(item.value(), 42);
+    }
+}