diff --git a/changelog/1239.bugfix.rst b/changelog/1239.bugfix.rst
new file mode 100644
index 00000000..7a7a7e3c
--- /dev/null
+++ b/changelog/1239.bugfix.rst
@@ -0,0 +1 @@
+Handle ``pytest.exit()`` raised in a worker without reporting it as an internal error.
diff --git a/src/xdist/dsession.py b/src/xdist/dsession.py
index 41e62d46..d8e9fd7c 100644
--- a/src/xdist/dsession.py
+++ b/src/xdist/dsession.py
@@ -59,6 +59,7 @@ def __init__(self, config: pytest.Config) -> None:
         self._active_nodes: set[WorkerController] = set()
         self._failed_nodes_count = 0
         self._max_worker_restart = get_default_max_worker_restart(self.config)
+        self._worker_exit: tuple[str, int | None] | None = None
         # summary message to print at the end of the session
         self._summary_report: str | None = None
         self.terminal = config.pluginmanager.getplugin("terminalreporter")
@@ -140,12 +141,16 @@ def pytest_runtestloop(self) -> bool:
         assert self.sched is not None
 
         self.shouldstop = False
-        pending_exception = None
+        pending_exception: BaseException | None = None
         while not self.session_finished:
             self.loop_once()
             if self.shouldstop:
                 self.triggershutdown()
                 pending_exception = Interrupted(str(self.shouldstop))
+            if self._worker_exit is not None:
+                reason, returncode = self._worker_exit
+                self.triggershutdown()
+                pending_exception = pytest.exit.Exception(reason, returncode)
         if pending_exception:
             raise pending_exception
         return True
@@ -206,6 +211,17 @@ def worker_workerfinished(self, node: WorkerController) -> None:
         workerready before shutdown was triggered.
         """
         self.config.hook.pytest_testnodedown(node=node, error=None)
+        if "exitreason" in node.workeroutput:
+            assert self.sched is not None
+            if node in self.sched.nodes:
+                self.sched.remove_node(node)
+            self._worker_exit = (
+                node.workeroutput["exitreason"],
+                node.workeroutput["exitreturncode"],
+            )
+            self._active_nodes.remove(node)
+            return
+
         if node.workeroutput["exitstatus"] == 2:  # keyboard-interrupt
             self.shouldstop = f"{node} received keyboard-interrupt"
             self.worker_errordown(node, "keyboard-interrupt")
diff --git a/src/xdist/remote.py b/src/xdist/remote.py
index 409b90b0..34e75ab5 100644
--- a/src/xdist/remote.py
+++ b/src/xdist/remote.py
@@ -134,6 +134,15 @@ def pytest_internalerror(self, excrepr: object) -> None:
             self.log("IERROR>", line)
         interactor.sendevent("internal_error", formatted_error=formatted_error)
 
+    @pytest.hookimpl
+    def pytest_keyboard_interrupt(
+        self, excinfo: pytest.ExceptionInfo[BaseException]
+    ) -> None:
+        if isinstance(excinfo.value, pytest.exit.Exception):
+            workeroutput: dict[str, Any] = self.config.workeroutput  # type: ignore[attr-defined]
+            workeroutput["exitreturncode"] = excinfo.value.returncode
+            workeroutput["exitreason"] = excinfo.value.msg
+
     @pytest.hookimpl
     def pytest_sessionstart(self, session: pytest.Session) -> None:
         self.session = session
diff --git a/testing/acceptance_test.py b/testing/acceptance_test.py
index 24611832..4d8bd712 100644
--- a/testing/acceptance_test.py
+++ b/testing/acceptance_test.py
@@ -919,6 +919,28 @@ def test_func(tmp_path):
 
 
 class TestNodeFailure:
+    @pytest.mark.parametrize("returncode", [0, 1])
+    def test_pytest_exit_is_not_reported_as_internal_error(
+        self, pytester: pytest.Pytester, returncode: int
+    ) -> None:
+        f = pytester.makepyfile(
+            f"""
+            import time
+            import pytest
+
+            @pytest.mark.parametrize("i", range(20))
+            def test_me(i):
+                if i == 12:
+                    pytest.exit("Something", {returncode})
+                time.sleep(0.01)
+        """
+        )
+        res = pytester.runpytest(f, "-n4")
+        assert res.ret == returncode
+        assert "INTERNALERROR" not in res.stdout.str()
+        assert "received keyboard-interrupt" not in res.stdout.str()
+        res.stdout.fnmatch_lines(["* _pytest.outcomes.Exit: Something *"])
+
     def test_load_single(self, pytester: pytest.Pytester) -> None:
         f = pytester.makepyfile(
             """