diff --git a/newsfragments/3178.fixed.md b/newsfragments/3178.fixed.md
new file mode 100644
index 00000000000..706eaf07589
--- /dev/null
+++ b/newsfragments/3178.fixed.md
@@ -0,0 +1 @@
+Fix a compile error when `#[pymethods]` items come from somewhere else (for example, as a macro argument) and a custom receiver like `Py<Self>` is used.
diff --git a/pyo3-macros-backend/src/method.rs b/pyo3-macros-backend/src/method.rs
index 0374df2fa27..1b9f1587217 100644
--- a/pyo3-macros-backend/src/method.rs
+++ b/pyo3-macros-backend/src/method.rs
@@ -189,10 +189,11 @@ impl SelfType {
                 }
             }
             SelfType::TryFromPyCell(span) => {
+                let _slf = quote! { _slf };
                 quote_spanned! { *span =>
                     let _cell = #cell;
                     #[allow(clippy::useless_conversion)]  // In case _slf is PyCell<Self>
-                    let _slf = ::std::convert::TryFrom::try_from(_cell)?;
+                    let #_slf = ::std::convert::TryFrom::try_from(_cell)?;
                 }
             }
         }
diff --git a/tests/test_methods.rs b/tests/test_methods.rs
index effd25a1be1..3f9be0a46a2 100644
--- a/tests/test_methods.rs
+++ b/tests/test_methods.rs
@@ -1470,6 +1470,33 @@ issue_1506!(
         ) {
         }
 
+        fn issue_1506_mut(
+            &mut self,
+            _py: Python<'_>,
+            _arg: &PyAny,
+            _args: &PyTuple,
+            _kwargs: Option<&PyDict>,
+        ) {
+        }
+
+        fn issue_1506_custom_receiver(
+            _slf: Py<Self>,
+            _py: Python<'_>,
+            _arg: &PyAny,
+            _args: &PyTuple,
+            _kwargs: Option<&PyDict>,
+        ) {
+        }
+
+        fn issue_1506_custom_receiver_explicit(
+            _slf: Py<Issue1506>,
+            _py: Python<'_>,
+            _arg: &PyAny,
+            _args: &PyTuple,
+            _kwargs: Option<&PyDict>,
+        ) {
+        }
+
         #[new]
         fn issue_1506_new(
             _py: Python<'_>,