diff --git a/newsfragments/3022.fixed.md b/newsfragments/3022.fixed.md
new file mode 100644
index 00000000000..fe89640b64a
--- /dev/null
+++ b/newsfragments/3022.fixed.md
@@ -0,0 +1 @@
+Fix compile error for `#[pymethods]` and `#[pyfunction]` called "output".
diff --git a/pyo3-macros-backend/src/method.rs b/pyo3-macros-backend/src/method.rs
index 9b40ac007e2..85dddf2e42e 100644
--- a/pyo3-macros-backend/src/method.rs
+++ b/pyo3-macros-backend/src/method.rs
@@ -409,21 +409,22 @@ impl<'a> FnSpec<'a> {
         let self_arg = self.tp.self_arg();
         let py = syn::Ident::new("_py", Span::call_site());
         let func_name = &self.name;
-        let rust_name = if let Some(cls) = cls {
-            quote!(#cls::#func_name)
-        } else {
-            quote!(#func_name)
-        };
 
         let rust_call = |args: Vec<TokenStream>| {
             quote! {
-                let mut ret = #rust_name(#self_arg #(#args),*);
+                let mut ret = function(#self_arg #(#args),*);
                 let owned = _pyo3::impl_::pymethods::OkWrap::wrap(ret, #py);
                 owned.map(|obj| _pyo3::conversion::IntoPyPointer::into_ptr(obj))
                     .map_err(::core::convert::Into::into)
             }
         };
 
+        let rust_name = if let Some(cls) = cls {
+            quote!(#cls::#func_name)
+        } else {
+            quote!(#func_name)
+        };
+
         Ok(match self.convention {
             CallingConvention::Noargs => {
                 let call = if !self.signature.arguments.is_empty() {
@@ -437,6 +438,7 @@ impl<'a> FnSpec<'a> {
                         #py: _pyo3::Python<'py>,
                         _slf: *mut _pyo3::ffi::PyObject,
                     ) -> _pyo3::PyResult<*mut _pyo3::ffi::PyObject> {
+                        let function = #rust_name; // Shadow the function name to avoid #3017
                         #deprecations
                         #self_conversion
                         #call
@@ -454,6 +456,7 @@ impl<'a> FnSpec<'a> {
                         _nargs: _pyo3::ffi::Py_ssize_t,
                         _kwnames: *mut _pyo3::ffi::PyObject
                     ) -> _pyo3::PyResult<*mut _pyo3::ffi::PyObject> {
+                        let function = #rust_name; // Shadow the function name to avoid #3017
                         #deprecations
                         #self_conversion
                         #arg_convert
@@ -471,6 +474,7 @@ impl<'a> FnSpec<'a> {
                         _args: *mut _pyo3::ffi::PyObject,
                         _kwargs: *mut _pyo3::ffi::PyObject
                     ) -> _pyo3::PyResult<*mut _pyo3::ffi::PyObject> {
+                        let function = #rust_name; // Shadow the function name to avoid #3017
                         #deprecations
                         #self_conversion
                         #arg_convert
@@ -489,6 +493,7 @@ impl<'a> FnSpec<'a> {
                         _kwargs: *mut _pyo3::ffi::PyObject
                     ) -> _pyo3::PyResult<*mut _pyo3::ffi::PyObject> {
                         use _pyo3::callback::IntoPyCallbackOutput;
+                        let function = #rust_name; // Shadow the function name to avoid #3017
                         #deprecations
                         #arg_convert
                         let result = #call;
diff --git a/pyo3-macros-backend/src/pymethod.rs b/pyo3-macros-backend/src/pymethod.rs
index a93fe70f859..38a8df8bee9 100644
--- a/pyo3-macros-backend/src/pymethod.rs
+++ b/pyo3-macros-backend/src/pymethod.rs
@@ -441,9 +441,9 @@ fn impl_py_class_attribute(cls: &syn::Type, spec: &FnSpec<'_>) -> syn::Result<Me
 
     let name = &spec.name;
     let fncall = if py_arg.is_some() {
-        quote!(#cls::#name(py))
+        quote!(function(py))
     } else {
-        quote!(#cls::#name())
+        quote!(function())
     };
 
     let wrapper_ident = format_ident!("__pymethod_{}__", name);
@@ -452,6 +452,7 @@ fn impl_py_class_attribute(cls: &syn::Type, spec: &FnSpec<'_>) -> syn::Result<Me
 
     let associated_method = quote! {
         fn #wrapper_ident(py: _pyo3::Python<'_>) -> _pyo3::PyResult<_pyo3::PyObject> {
+            let function = #cls::#name; // Shadow the method name to avoid #3017
             #deprecations
             let mut ret = #fncall;
             let owned = _pyo3::impl_::pymethods::OkWrap::wrap(ret, py);
@@ -1151,12 +1152,14 @@ impl SlotDef {
             *extract_error_mode,
             return_mode.as_ref(),
         )?;
+        let name = spec.name;
         let associated_method = quote! {
             unsafe fn #wrapper_ident(
                 #py: _pyo3::Python<'_>,
                 _raw_slf: *mut _pyo3::ffi::PyObject,
                 #(#arg_idents: #arg_types),*
             ) -> _pyo3::PyResult<#ret_ty> {
+                let function = #cls::#name; // Shadow the method name to avoid #3017
                 let _slf = _raw_slf;
                 #body
             }