diff --git a/changelog/884.bugfix b/changelog/884.bugfix
new file mode 100644
index 00000000..8e53551b
--- /dev/null
+++ b/changelog/884.bugfix
@@ -0,0 +1 @@
+Fixed hang in ``worksteal`` scheduler.
diff --git a/src/xdist/remote.py b/src/xdist/remote.py
index 2e83a8dc..e035f772 100644
--- a/src/xdist/remote.py
+++ b/src/xdist/remote.py
@@ -58,6 +58,7 @@ def worker_title(title):
 
 class WorkerInteractor:
     SHUTDOWN_MARK = object()
+    QUEUE_REPLACED_MARK = object()
 
     def __init__(self, config, channel):
         self.config = config
@@ -72,6 +73,15 @@ def __init__(self, config, channel):
     def _make_queue(self):
         return self.channel.gateway.execmodel.queue.Queue()
 
+    def _get_next_item_index(self):
+        """Gets the next item from test queue. Handles the case when the queue
+        is replaced concurrently in another thread.
+        """
+        result = self.torun.get()
+        while result is self.QUEUE_REPLACED_MARK:
+            result = self.torun.get()
+        return result
+
     def sendevent(self, name, **kwargs):
         self.log("sending", name, kwargs)
         self.channel.send((name, kwargs))
@@ -136,19 +146,22 @@ def old_queue_get_nowait_noraise():
                 self.torun.put(i)
 
         self.sendevent("unscheduled", indices=stolen)
+        old_queue.put(self.QUEUE_REPLACED_MARK)
 
     @pytest.hookimpl
     def pytest_runtestloop(self, session):
         self.log("entering main loop")
         self.channel.setcallback(self.handle_command, endmarker=self.SHUTDOWN_MARK)
-        self.nextitem_index = self.torun.get()
+        self.nextitem_index = self._get_next_item_index()
         while self.nextitem_index is not self.SHUTDOWN_MARK:
             self.run_one_test()
         return True
 
     def run_one_test(self):
+        self.item_index = self.nextitem_index
+        self.nextitem_index = self._get_next_item_index()
+
         items = self.session.items
-        self.item_index, self.nextitem_index = self.nextitem_index, self.torun.get()
         item = items[self.item_index]
         if self.nextitem_index is self.SHUTDOWN_MARK:
             nextitem = None
diff --git a/testing/test_remote.py b/testing/test_remote.py
index cb8f6b7f..2d250c5b 100644
--- a/testing/test_remote.py
+++ b/testing/test_remote.py
@@ -271,6 +271,40 @@ def test_func4(): pass
         ev = worker.popevent("workerfinished")
         assert "workeroutput" in ev.kwargs
 
+    def test_steal_empty_queue(self, worker: WorkerSetup, unserialize_report) -> None:
+        worker.pytester.makepyfile(
+            """
+            def test_func(): pass
+            def test_func2(): pass
+        """
+        )
+        worker.setup()
+        ev = worker.popevent("collectionfinish")
+        ids = ev.kwargs["ids"]
+        assert len(ids) == 2
+        worker.sendcommand("runtests_all")
+
+        for when in ["setup", "call", "teardown"]:
+            ev = worker.popevent("testreport")
+            rep = unserialize_report(ev.kwargs["data"])
+            assert rep.nodeid.endswith("::test_func")
+            assert rep.when == when
+
+        worker.sendcommand("steal", indices=[0, 1])
+        ev = worker.popevent("unscheduled")
+        assert ev.kwargs["indices"] == []
+
+        worker.sendcommand("shutdown")
+
+        for when in ["setup", "call", "teardown"]:
+            ev = worker.popevent("testreport")
+            rep = unserialize_report(ev.kwargs["data"])
+            assert rep.nodeid.endswith("::test_func2")
+            assert rep.when == when
+
+        ev = worker.popevent("workerfinished")
+        assert "workeroutput" in ev.kwargs
+
 
 def test_remote_env_vars(pytester: pytest.Pytester) -> None:
     pytester.makepyfile(