diff --git a/src/_pytest/main.py b/src/_pytest/main.py
index 2b9218e7e78..b26173d74a0 100644
--- a/src/_pytest/main.py
+++ b/src/_pytest/main.py
@@ -846,6 +846,7 @@ def collect(self) -> Iterator[Union[nodes.Item, nodes.Collector]]:
 
             argpath = collection_argument.path
             names = collection_argument.parts
+            module_name = collection_argument.module_name
 
             # resolve_collection_argument() ensures this.
             if argpath.is_dir():
@@ -854,11 +855,20 @@ def collect(self) -> Iterator[Union[nodes.Item, nodes.Collector]]:
             paths = [argpath]
             # Add relevant parents of the path, from the root, e.g.
             #   /a/b/c.py -> [/, /a, /a/b, /a/b/c.py]
-            # Paths outside of the confcutdir should not be considered.
-            for path in argpath.parents:
-                if not pm._is_in_confcutdir(path):
-                    break
-                paths.insert(0, path)
+            if module_name is None:
+                # Paths outside of the confcutdir should not be considered.
+                for path in argpath.parents:
+                    if not pm._is_in_confcutdir(path):
+                        break
+                    paths.insert(0, path)
+            else:
+                # For --pyargs arguments, only consider paths matching the module
+                # name. Paths beyond the package hierarchy are not included.
+                module_name_parts = module_name.split(".")
+                for i, path in enumerate(argpath.parents, 2):
+                    if i > len(module_name_parts) or path.stem != module_name_parts[-i]:
+                        break
+                    paths.insert(0, path)
 
             # Start going over the parts from the root, collecting each level
             # and discarding all nodes which don't match the level's part.
diff --git a/testing/test_collection.py b/testing/test_collection.py
index 0507400455c..c79db0441b6 100644
--- a/testing/test_collection.py
+++ b/testing/test_collection.py
@@ -1787,3 +1787,48 @@ def test_collect_short_file_windows(pytester: Pytester) -> None:
     test_file.write_text("def test(): pass", encoding="UTF-8")
     result = pytester.runpytest(short_path)
     assert result.parseoutcomes() == {"passed": 1}
+
+
+def test_pyargs_collection_tree(pytester: Pytester, monkeypatch: MonkeyPatch) -> None:
+    """When using `--pyargs`, the collection tree of a pyargs collection
+    argument should only parents in the import tree, not up to confcutdir.
+
+    Regression test for #11904.
+    """
+    site_packages = pytester.path / "venv/lib/site-packages"
+    site_packages.mkdir(parents=True)
+    monkeypatch.syspath_prepend(site_packages)
+    pytester.makepyfile(
+        **{
+            "venv/lib/site-packages/pkg/__init__.py": "",
+            "venv/lib/site-packages/pkg/sub/__init__.py": "",
+            "venv/lib/site-packages/pkg/sub/test_it.py": "def test(): pass",
+        }
+    )
+
+    result = pytester.runpytest("--pyargs", "--collect-only", "pkg.sub.test_it")
+    assert result.ret == ExitCode.OK
+    result.stdout.fnmatch_lines(
+        [
+            "<Package venv/lib/site-packages/pkg>",
+            "  <Package sub>",
+            "    <Module test_it.py>",
+            "      <Function test>",
+        ],
+        consecutive=True,
+    )
+
+    # Now with an unrelated rootdir with unrelated files.
+    monkeypatch.chdir(tempfile.gettempdir())
+
+    result = pytester.runpytest("--pyargs", "--collect-only", "pkg.sub.test_it")
+    assert result.ret == ExitCode.OK
+    result.stdout.fnmatch_lines(
+        [
+            "<Package *pkg>",
+            "  <Package sub>",
+            "    <Module test_it.py>",
+            "      <Function test>",
+        ],
+        consecutive=True,
+    )