diff --git a/guide/src/class.md b/guide/src/class.md
index 9662e8f6e09..8ce896f5a61 100644
--- a/guide/src/class.md
+++ b/guide/src/class.md
@@ -1254,7 +1254,7 @@ impl<'a, 'py> pyo3::impl_::extract_argument::PyFunctionArgument<'a, 'py> for &'a
     type Holder = ::std::option::Option<pyo3::PyRef<'py, MyClass>>;
 
     #[inline]
-    fn extract(obj: &'py pyo3::PyAny, holder: &'a mut Self::Holder) -> pyo3::PyResult<Self> {
+    fn extract(obj: &'a pyo3::Bound<'py, PyAny>, holder: &'a mut Self::Holder) -> pyo3::PyResult<Self> {
         pyo3::impl_::extract_argument::extract_pyclass_ref(obj, holder)
     }
 }
@@ -1264,7 +1264,7 @@ impl<'a, 'py> pyo3::impl_::extract_argument::PyFunctionArgument<'a, 'py> for &'a
     type Holder = ::std::option::Option<pyo3::PyRefMut<'py, MyClass>>;
 
     #[inline]
-    fn extract(obj: &'py pyo3::PyAny, holder: &'a mut Self::Holder) -> pyo3::PyResult<Self> {
+    fn extract(obj: &'a pyo3::Bound<'py, PyAny>, holder: &'a mut Self::Holder) -> pyo3::PyResult<Self> {
         pyo3::impl_::extract_argument::extract_pyclass_ref_mut(obj, holder)
     }
 }
diff --git a/pyo3-benches/benches/bench_comparisons.rs b/pyo3-benches/benches/bench_comparisons.rs
index ffd4c1a452f..fbd473f06cf 100644
--- a/pyo3-benches/benches/bench_comparisons.rs
+++ b/pyo3-benches/benches/bench_comparisons.rs
@@ -45,8 +45,8 @@ impl OrderedRichcmp {
 
 fn bench_ordered_dunder_methods(b: &mut Bencher<'_>) {
     Python::with_gil(|py| {
-        let obj1 = Py::new(py, OrderedDunderMethods(0)).unwrap().into_ref(py);
-        let obj2 = Py::new(py, OrderedDunderMethods(1)).unwrap().into_ref(py);
+        let obj1 = &Bound::new(py, OrderedDunderMethods(0)).unwrap().into_any();
+        let obj2 = &Bound::new(py, OrderedDunderMethods(1)).unwrap().into_any();
 
         b.iter(|| obj2.gt(obj1).unwrap());
     });
@@ -54,8 +54,8 @@ fn bench_ordered_dunder_methods(b: &mut Bencher<'_>) {
 
 fn bench_ordered_richcmp(b: &mut Bencher<'_>) {
     Python::with_gil(|py| {
-        let obj1 = Py::new(py, OrderedRichcmp(0)).unwrap().into_ref(py);
-        let obj2 = Py::new(py, OrderedRichcmp(1)).unwrap().into_ref(py);
+        let obj1 = &Bound::new(py, OrderedRichcmp(0)).unwrap().into_any();
+        let obj2 = &Bound::new(py, OrderedRichcmp(1)).unwrap().into_any();
 
         b.iter(|| obj2.gt(obj1).unwrap());
     });
diff --git a/pyo3-macros-backend/src/method.rs b/pyo3-macros-backend/src/method.rs
index 2d21c265683..6ee87fb99a6 100644
--- a/pyo3-macros-backend/src/method.rs
+++ b/pyo3-macros-backend/src/method.rs
@@ -196,10 +196,11 @@ impl SelfType {
                 holders.push(quote_spanned! { *span =>
                     #[allow(clippy::let_unit_value)]
                     let mut #holder = _pyo3::impl_::extract_argument::FunctionArgumentHolder::INIT;
+                    let mut #slf = _pyo3::impl_::pymethods::BoundRef::ref_from_ptr(#py, &#slf);
                 });
                 error_mode.handle_error(quote_spanned! { *span =>
                     _pyo3::impl_::extract_argument::#method::<#cls>(
-                        #py.from_borrowed_ptr::<_pyo3::PyAny>(#slf),
+                        &#slf,
                         &mut #holder,
                     )
                 })
@@ -582,7 +583,8 @@ impl<'a> FnSpec<'a> {
                     ) -> _pyo3::PyResult<*mut _pyo3::ffi::PyObject> {
                         let function = #rust_name; // Shadow the function name to avoid #3017
                         #( #holders )*
-                        #call
+                        let result = #call;
+                        result
                     }
                 }
             }
@@ -601,7 +603,8 @@ impl<'a> FnSpec<'a> {
                         let function = #rust_name; // Shadow the function name to avoid #3017
                         #arg_convert
                         #( #holders )*
-                        #call
+                        let result = #call;
+                        result
                     }
                 }
             }
@@ -619,7 +622,8 @@ impl<'a> FnSpec<'a> {
                         let function = #rust_name; // Shadow the function name to avoid #3017
                         #arg_convert
                         #( #holders )*
-                        #call
+                        let result = #call;
+                        result
                     }
                 }
             }
diff --git a/pyo3-macros-backend/src/params.rs b/pyo3-macros-backend/src/params.rs
index 3781b41b765..679d3e4260a 100644
--- a/pyo3-macros-backend/src/params.rs
+++ b/pyo3-macros-backend/src/params.rs
@@ -44,8 +44,8 @@ pub fn impl_arg_params(
             .collect::<Result<_>>()?;
         return Ok((
             quote! {
-                let _args = py.from_borrowed_ptr::<_pyo3::types::PyTuple>(_args);
-                let _kwargs: ::std::option::Option<&_pyo3::types::PyDict> = py.from_borrowed_ptr_or_opt(_kwargs);
+                let _args = _pyo3::impl_::pymethods::BoundRef::ref_from_ptr(py, &_args);
+                let _kwargs = _pyo3::impl_::pymethods::BoundRef::ref_from_ptr_or_opt(py, &_kwargs);
             },
             arg_convert,
         ));
@@ -180,7 +180,7 @@ fn impl_arg_param(
         let holder = push_holder();
         return Ok(quote_arg_span! {
             _pyo3::impl_::extract_argument::extract_argument(
-                _args,
+                &_args,
                 &mut #holder,
                 #name_str
             )?
@@ -193,7 +193,7 @@ fn impl_arg_param(
         let holder = push_holder();
         return Ok(quote_arg_span! {
             _pyo3::impl_::extract_argument::extract_optional_argument(
-                _kwargs.map(::std::convert::AsRef::as_ref),
+                _kwargs.as_deref(),
                 &mut #holder,
                 #name_str,
                 || ::std::option::Option::None
@@ -217,7 +217,7 @@ fn impl_arg_param(
             quote_arg_span! {
                 #[allow(clippy::redundant_closure)]
                 _pyo3::impl_::extract_argument::from_py_with_with_default(
-                    #arg_value.map(_pyo3::PyNativeType::as_borrowed).as_deref(),
+                    #arg_value.as_deref(),
                     #name_str,
                     #expr_path as fn(_) -> _,
                     || #default
@@ -226,7 +226,7 @@ fn impl_arg_param(
         } else {
             quote_arg_span! {
                 _pyo3::impl_::extract_argument::from_py_with(
-                    &_pyo3::impl_::extract_argument::unwrap_required_argument(#arg_value).as_borrowed(),
+                    &_pyo3::impl_::extract_argument::unwrap_required_argument(#arg_value),
                     #name_str,
                     #expr_path as fn(_) -> _,
                 )?
@@ -237,7 +237,7 @@ fn impl_arg_param(
         quote_arg_span! {
             #[allow(clippy::redundant_closure)]
             _pyo3::impl_::extract_argument::extract_optional_argument(
-                #arg_value,
+                #arg_value.as_deref(),
                 &mut #holder,
                 #name_str,
                 || #default
@@ -248,7 +248,7 @@ fn impl_arg_param(
         quote_arg_span! {
             #[allow(clippy::redundant_closure)]
             _pyo3::impl_::extract_argument::extract_argument_with_default(
-                #arg_value,
+                #arg_value.as_deref(),
                 &mut #holder,
                 #name_str,
                 || #default
@@ -258,7 +258,7 @@ fn impl_arg_param(
         let holder = push_holder();
         quote_arg_span! {
             _pyo3::impl_::extract_argument::extract_argument(
-                _pyo3::impl_::extract_argument::unwrap_required_argument(#arg_value),
+                &_pyo3::impl_::extract_argument::unwrap_required_argument(#arg_value),
                 &mut #holder,
                 #name_str
             )?
diff --git a/pyo3-macros-backend/src/pyclass.rs b/pyo3-macros-backend/src/pyclass.rs
index 1547e78b4c2..5ec6ac172e6 100644
--- a/pyo3-macros-backend/src/pyclass.rs
+++ b/pyo3-macros-backend/src/pyclass.rs
@@ -1378,7 +1378,7 @@ impl<'a> PyClassImplsBuilder<'a> {
                     type Holder = ::std::option::Option<_pyo3::PyRef<'py, #cls>>;
 
                     #[inline]
-                    fn extract(obj: &'py _pyo3::PyAny, holder: &'a mut Self::Holder) -> _pyo3::PyResult<Self> {
+                    fn extract(obj: &'a _pyo3::Bound<'py, _pyo3::PyAny>, holder: &'a mut Self::Holder) -> _pyo3::PyResult<Self> {
                         _pyo3::impl_::extract_argument::extract_pyclass_ref(obj, holder)
                     }
                 }
@@ -1390,7 +1390,7 @@ impl<'a> PyClassImplsBuilder<'a> {
                     type Holder = ::std::option::Option<_pyo3::PyRef<'py, #cls>>;
 
                     #[inline]
-                    fn extract(obj: &'py _pyo3::PyAny, holder: &'a mut Self::Holder) -> _pyo3::PyResult<Self> {
+                    fn extract(obj: &'a _pyo3::Bound<'py, _pyo3::PyAny>, holder: &'a mut Self::Holder) -> _pyo3::PyResult<Self> {
                         _pyo3::impl_::extract_argument::extract_pyclass_ref(obj, holder)
                     }
                 }
@@ -1400,7 +1400,7 @@ impl<'a> PyClassImplsBuilder<'a> {
                     type Holder = ::std::option::Option<_pyo3::PyRefMut<'py, #cls>>;
 
                     #[inline]
-                    fn extract(obj: &'py _pyo3::PyAny, holder: &'a mut Self::Holder) -> _pyo3::PyResult<Self> {
+                    fn extract(obj: &'a _pyo3::Bound<'py, _pyo3::PyAny>, holder: &'a mut Self::Holder) -> _pyo3::PyResult<Self> {
                         _pyo3::impl_::extract_argument::extract_pyclass_ref_mut(obj, holder)
                     }
                 }
diff --git a/pyo3-macros-backend/src/pymethod.rs b/pyo3-macros-backend/src/pymethod.rs
index 358d327ed0b..4cb07a9ad2a 100644
--- a/pyo3-macros-backend/src/pymethod.rs
+++ b/pyo3-macros-backend/src/pymethod.rs
@@ -698,7 +698,8 @@ pub fn impl_py_getter_def(
             _slf: *mut _pyo3::ffi::PyObject
         ) -> _pyo3::PyResult<*mut _pyo3::ffi::PyObject> {
             #( #holders )*
-            #body
+            let result = #body;
+            result
         }
     };
 
@@ -930,39 +931,31 @@ impl Ty {
                 extract_error_mode,
                 holders,
                 &name_str,
-                quote! {
-                    py.from_borrowed_ptr::<_pyo3::PyAny>(#ident)
-                },
+                quote! { #ident },
             ),
             Ty::MaybeNullObject => extract_object(
                 extract_error_mode,
                 holders,
                 &name_str,
                 quote! {
-                    py.from_borrowed_ptr::<_pyo3::PyAny>(
-                        if #ident.is_null() {
-                            _pyo3::ffi::Py_None()
-                        } else {
-                            #ident
-                        }
-                    )
+                    if #ident.is_null() {
+                        _pyo3::ffi::Py_None()
+                    } else {
+                        #ident
+                    }
                 },
             ),
             Ty::NonNullObject => extract_object(
                 extract_error_mode,
                 holders,
                 &name_str,
-                quote! {
-                    py.from_borrowed_ptr::<_pyo3::PyAny>(#ident.as_ptr())
-                },
+                quote! { #ident.as_ptr() },
             ),
             Ty::IPowModulo => extract_object(
                 extract_error_mode,
                 holders,
                 &name_str,
-                quote! {
-                    #ident.to_borrowed_any(py)
-                },
+                quote! { #ident.as_ptr() },
             ),
             Ty::CompareOp => extract_error_mode.handle_error(
                 quote! {
@@ -988,7 +981,7 @@ fn extract_object(
     extract_error_mode: ExtractErrorMode,
     holders: &mut Vec<TokenStream>,
     name: &str,
-    source: TokenStream,
+    source_ptr: TokenStream,
 ) -> TokenStream {
     let holder = syn::Ident::new(&format!("holder_{}", holders.len()), Span::call_site());
     holders.push(quote! {
@@ -997,7 +990,7 @@ fn extract_object(
     });
     extract_error_mode.handle_error(quote! {
         _pyo3::impl_::extract_argument::extract_argument(
-            #source,
+            &_pyo3::impl_::pymethods::BoundRef::ref_from_ptr(py, &#source_ptr),
             &mut #holder,
             #name
         )
diff --git a/pytests/src/pyfunctions.rs b/pytests/src/pyfunctions.rs
index 1eef970430e..a92733c2898 100644
--- a/pytests/src/pyfunctions.rs
+++ b/pytests/src/pyfunctions.rs
@@ -4,62 +4,66 @@ use pyo3::types::{PyDict, PyTuple};
 #[pyfunction(signature = ())]
 fn none() {}
 
+type Any<'py> = Bound<'py, PyAny>;
+type Dict<'py> = Bound<'py, PyDict>;
+type Tuple<'py> = Bound<'py, PyTuple>;
+
 #[pyfunction(signature = (a, b = None, *, c = None))]
-fn simple<'a>(
-    a: &'a PyAny,
-    b: Option<&'a PyAny>,
-    c: Option<&'a PyAny>,
-) -> (&'a PyAny, Option<&'a PyAny>, Option<&'a PyAny>) {
+fn simple<'py>(
+    a: Any<'py>,
+    b: Option<Any<'py>>,
+    c: Option<Any<'py>>,
+) -> (Any<'py>, Option<Any<'py>>, Option<Any<'py>>) {
     (a, b, c)
 }
 
 #[pyfunction(signature = (a, b = None, *args, c = None))]
-fn simple_args<'a>(
-    a: &'a PyAny,
-    b: Option<&'a PyAny>,
-    args: &'a PyTuple,
-    c: Option<&'a PyAny>,
-) -> (&'a PyAny, Option<&'a PyAny>, &'a PyTuple, Option<&'a PyAny>) {
+fn simple_args<'py>(
+    a: Any<'py>,
+    b: Option<Any<'py>>,
+    args: Tuple<'py>,
+    c: Option<Any<'py>>,
+) -> (Any<'py>, Option<Any<'py>>, Tuple<'py>, Option<Any<'py>>) {
     (a, b, args, c)
 }
 
 #[pyfunction(signature = (a, b = None, c = None, **kwargs))]
-fn simple_kwargs<'a>(
-    a: &'a PyAny,
-    b: Option<&'a PyAny>,
-    c: Option<&'a PyAny>,
-    kwargs: Option<&'a PyDict>,
+fn simple_kwargs<'py>(
+    a: Any<'py>,
+    b: Option<Any<'py>>,
+    c: Option<Any<'py>>,
+    kwargs: Option<Dict<'py>>,
 ) -> (
-    &'a PyAny,
-    Option<&'a PyAny>,
-    Option<&'a PyAny>,
-    Option<&'a PyDict>,
+    Any<'py>,
+    Option<Any<'py>>,
+    Option<Any<'py>>,
+    Option<Dict<'py>>,
 ) {
     (a, b, c, kwargs)
 }
 
 #[pyfunction(signature = (a, b = None, *args, c = None, **kwargs))]
-fn simple_args_kwargs<'a>(
-    a: &'a PyAny,
-    b: Option<&'a PyAny>,
-    args: &'a PyTuple,
-    c: Option<&'a PyAny>,
-    kwargs: Option<&'a PyDict>,
+fn simple_args_kwargs<'py>(
+    a: Any<'py>,
+    b: Option<Any<'py>>,
+    args: Tuple<'py>,
+    c: Option<Any<'py>>,
+    kwargs: Option<Dict<'py>>,
 ) -> (
-    &'a PyAny,
-    Option<&'a PyAny>,
-    &'a PyTuple,
-    Option<&'a PyAny>,
-    Option<&'a PyDict>,
+    Any<'py>,
+    Option<Any<'py>>,
+    Tuple<'py>,
+    Option<Any<'py>>,
+    Option<Dict<'py>>,
 ) {
     (a, b, args, c, kwargs)
 }
 
 #[pyfunction(signature = (*args, **kwargs))]
-fn args_kwargs<'a>(
-    args: &'a PyTuple,
-    kwargs: Option<&'a PyDict>,
-) -> (&'a PyTuple, Option<&'a PyDict>) {
+fn args_kwargs<'py>(
+    args: Tuple<'py>,
+    kwargs: Option<Dict<'py>>,
+) -> (Tuple<'py>, Option<Dict<'py>>) {
     (args, kwargs)
 }
 
diff --git a/src/impl_/extract_argument.rs b/src/impl_/extract_argument.rs
index 27728c6d46f..d2e2b18cf05 100644
--- a/src/impl_/extract_argument.rs
+++ b/src/impl_/extract_argument.rs
@@ -2,10 +2,16 @@ use crate::{
     exceptions::PyTypeError,
     ffi,
     pyclass::boolean_struct::False,
-    types::{PyDict, PyString, PyTuple},
-    Bound, FromPyObject, PyAny, PyClass, PyErr, PyRef, PyRefMut, PyResult, PyTypeCheck, Python,
+    types::{any::PyAnyMethods, dict::PyDictMethods, tuple::PyTupleMethods, PyDict, PyTuple},
+    Borrowed, Bound, FromPyObject, PyAny, PyClass, PyErr, PyRef, PyRefMut, PyResult, PyTypeCheck,
+    Python,
 };
 
+/// Helper type used to keep implementation more concise.
+///
+/// (Function argument extraction borrows input arguments.)
+type PyArg<'py> = Borrowed<'py, 'py, PyAny>;
+
 /// A trait which is used to help PyO3 macros extract function arguments.
 ///
 /// `#[pyclass]` structs need to extract as `PyRef<T>` and `PyRefMut<T>`
@@ -16,7 +22,7 @@ use crate::{
 /// There exists a trivial blanket implementation for `T: FromPyObject` with `Holder = ()`.
 pub trait PyFunctionArgument<'a, 'py>: Sized + 'a {
     type Holder: FunctionArgumentHolder;
-    fn extract(obj: &'py PyAny, holder: &'a mut Self::Holder) -> PyResult<Self>;
+    fn extract(obj: &'a Bound<'py, PyAny>, holder: &'a mut Self::Holder) -> PyResult<Self>;
 }
 
 impl<'a, 'py, T> PyFunctionArgument<'a, 'py> for T
@@ -26,20 +32,23 @@ where
     type Holder = ();
 
     #[inline]
-    fn extract(obj: &'py PyAny, _: &'a mut ()) -> PyResult<Self> {
+    fn extract(obj: &'a Bound<'py, PyAny>, _: &'a mut ()) -> PyResult<Self> {
         obj.extract()
     }
 }
 
-impl<'a, 'py, T> PyFunctionArgument<'a, 'py> for &'a Bound<'py, T>
+impl<'a, 'py, T: 'py> PyFunctionArgument<'a, 'py> for &'a Bound<'py, T>
 where
     T: PyTypeCheck,
 {
-    type Holder = Option<Bound<'py, T>>;
+    type Holder = Option<&'a Bound<'py, T>>;
 
     #[inline]
-    fn extract(obj: &'py PyAny, holder: &'a mut Option<Bound<'py, T>>) -> PyResult<Self> {
-        Ok(&*holder.insert(obj.extract()?))
+    fn extract(
+        obj: &'a Bound<'py, PyAny>,
+        holder: &'a mut Option<&'a Bound<'py, T>>,
+    ) -> PyResult<Self> {
+        Ok(holder.insert(obj.downcast()?))
     }
 }
 
@@ -59,7 +68,7 @@ impl<T> FunctionArgumentHolder for Option<T> {
 
 #[inline]
 pub fn extract_pyclass_ref<'a, 'py: 'a, T: PyClass>(
-    obj: &'py PyAny,
+    obj: &'a Bound<'py, PyAny>,
     holder: &'a mut Option<PyRef<'py, T>>,
 ) -> PyResult<&'a T> {
     Ok(&*holder.insert(obj.extract()?))
@@ -67,7 +76,7 @@ pub fn extract_pyclass_ref<'a, 'py: 'a, T: PyClass>(
 
 #[inline]
 pub fn extract_pyclass_ref_mut<'a, 'py: 'a, T: PyClass<Frozen = False>>(
-    obj: &'py PyAny,
+    obj: &'a Bound<'py, PyAny>,
     holder: &'a mut Option<PyRefMut<'py, T>>,
 ) -> PyResult<&'a mut T> {
     Ok(&mut *holder.insert(obj.extract()?))
@@ -76,7 +85,7 @@ pub fn extract_pyclass_ref_mut<'a, 'py: 'a, T: PyClass<Frozen = False>>(
 /// The standard implementation of how PyO3 extracts a `#[pyfunction]` or `#[pymethod]` function argument.
 #[doc(hidden)]
 pub fn extract_argument<'a, 'py, T>(
-    obj: &'py PyAny,
+    obj: &'a Bound<'py, PyAny>,
     holder: &'a mut T::Holder,
     arg_name: &str,
 ) -> PyResult<T>
@@ -93,7 +102,7 @@ where
 /// does not implement `PyFunctionArgument` for `T: PyClass`.
 #[doc(hidden)]
 pub fn extract_optional_argument<'a, 'py, T>(
-    obj: Option<&'py PyAny>,
+    obj: Option<&'a Bound<'py, PyAny>>,
     holder: &'a mut T::Holder,
     arg_name: &str,
     default: fn() -> Option<T>,
@@ -117,7 +126,7 @@ where
 /// Alternative to [`extract_argument`] used when the argument has a default value provided by an annotation.
 #[doc(hidden)]
 pub fn extract_argument_with_default<'a, 'py, T>(
-    obj: Option<&'py PyAny>,
+    obj: Option<&'a Bound<'py, PyAny>>,
     holder: &'a mut T::Holder,
     arg_name: &str,
     default: fn() -> T,
@@ -165,7 +174,6 @@ pub fn from_py_with_with_default<'a, 'py, T>(
 #[doc(hidden)]
 #[cold]
 pub fn argument_extraction_error(py: Python<'_>, arg_name: &str, error: PyErr) -> PyErr {
-    use crate::types::any::PyAnyMethods;
     if error
         .get_type_bound(py)
         .is(&py.get_type_bound::<PyTypeError>())
@@ -189,7 +197,7 @@ pub fn argument_extraction_error(py: Python<'_>, arg_name: &str, error: PyErr) -
 /// `argument` must not be `None`
 #[doc(hidden)]
 #[inline]
-pub unsafe fn unwrap_required_argument(argument: Option<&PyAny>) -> &PyAny {
+pub unsafe fn unwrap_required_argument(argument: Option<PyArg<'_>>) -> PyArg<'_> {
     match argument {
         Some(value) => value,
         #[cfg(debug_assertions)]
@@ -236,7 +244,7 @@ impl FunctionDescription {
         args: *const *mut ffi::PyObject,
         nargs: ffi::Py_ssize_t,
         kwnames: *mut ffi::PyObject,
-        output: &mut [Option<&'py PyAny>],
+        output: &mut [Option<PyArg<'py>>],
     ) -> PyResult<(V::Varargs, K::Varkeywords)>
     where
         V: VarargsHandler<'py>,
@@ -253,8 +261,10 @@ impl FunctionDescription {
         );
 
         // Handle positional arguments
-        // Safety: Option<&PyAny> has the same memory layout as `*mut ffi::PyObject`
-        let args: *const Option<&PyAny> = args.cast();
+        // Safety:
+        //  - Option<PyArg> has the same memory layout as `*mut ffi::PyObject`
+        //  - we both have the GIL and can borrow these input references for the `'py` lifetime.
+        let args: *const Option<PyArg<'py>> = args.cast();
         let positional_args_provided = nargs as usize;
         let remaining_positional_args = if args.is_null() {
             debug_assert_eq!(positional_args_provided, 0);
@@ -274,13 +284,20 @@ impl FunctionDescription {
 
         // Handle keyword arguments
         let mut varkeywords = K::Varkeywords::default();
-        if let Some(kwnames) = py.from_borrowed_ptr_or_opt::<PyTuple>(kwnames) {
-            // Safety: &PyAny has the same memory layout as `*mut ffi::PyObject`
-            let kwargs =
-                ::std::slice::from_raw_parts((args as *const &PyAny).offset(nargs), kwnames.len());
+
+        // Safety: kwnames is known to be a pointer to a tuple, or null
+        //  - we both have the GIL and can borrow this input reference for the `'py` lifetime.
+        let kwnames: Option<Borrowed<'_, '_, PyTuple>> =
+            Borrowed::from_ptr_or_opt(py, kwnames).map(|kwnames| kwnames.downcast_unchecked());
+        if let Some(kwnames) = kwnames {
+            // Safety: PyArg has the same memory layout as `*mut ffi::PyObject`
+            let kwargs = ::std::slice::from_raw_parts(
+                (args as *const PyArg<'py>).offset(nargs),
+                kwnames.len(),
+            );
 
             self.handle_kwargs::<K, _>(
-                kwnames.iter().zip(kwargs.iter().copied()),
+                kwnames.iter_borrowed().zip(kwargs.iter().copied()),
                 &mut varkeywords,
                 num_positional_parameters,
                 output,
@@ -312,14 +329,20 @@ impl FunctionDescription {
         py: Python<'py>,
         args: *mut ffi::PyObject,
         kwargs: *mut ffi::PyObject,
-        output: &mut [Option<&'py PyAny>],
+        output: &mut [Option<PyArg<'py>>],
     ) -> PyResult<(V::Varargs, K::Varkeywords)>
     where
         V: VarargsHandler<'py>,
         K: VarkeywordsHandler<'py>,
     {
-        let args = py.from_borrowed_ptr::<PyTuple>(args);
-        let kwargs: ::std::option::Option<&PyDict> = py.from_borrowed_ptr_or_opt(kwargs);
+        // Safety:
+        //  - `args` is known to be a tuple
+        //  - `kwargs` is known to be a dict or null
+        //  - we both have the GIL and can borrow these input references for the `'py` lifetime.
+        let args: Borrowed<'py, 'py, PyTuple> =
+            Borrowed::from_ptr(py, args).downcast_unchecked::<PyTuple>();
+        let kwargs: Option<Borrowed<'py, 'py, PyDict>> =
+            Borrowed::from_ptr_or_opt(py, kwargs).map(|kwargs| kwargs.downcast_unchecked());
 
         let num_positional_parameters = self.positional_parameter_names.len();
 
@@ -331,17 +354,26 @@ impl FunctionDescription {
         );
 
         // Copy positional arguments into output
-        for (i, arg) in args.iter().take(num_positional_parameters).enumerate() {
+        for (i, arg) in args
+            .iter_borrowed()
+            .take(num_positional_parameters)
+            .enumerate()
+        {
             output[i] = Some(arg);
         }
 
         // If any arguments remain, push them to varargs (if possible) or error
-        let varargs = V::handle_varargs_tuple(args, self)?;
+        let varargs = V::handle_varargs_tuple(&args, self)?;
 
         // Handle keyword arguments
         let mut varkeywords = K::Varkeywords::default();
         if let Some(kwargs) = kwargs {
-            self.handle_kwargs::<K, _>(kwargs, &mut varkeywords, num_positional_parameters, output)?
+            self.handle_kwargs::<K, _>(
+                kwargs.iter_borrowed(),
+                &mut varkeywords,
+                num_positional_parameters,
+                output,
+            )?
         }
 
         // Once all inputs have been processed, check that all required arguments have been provided.
@@ -358,11 +390,11 @@ impl FunctionDescription {
         kwargs: I,
         varkeywords: &mut K::Varkeywords,
         num_positional_parameters: usize,
-        output: &mut [Option<&'py PyAny>],
+        output: &mut [Option<PyArg<'py>>],
     ) -> PyResult<()>
     where
         K: VarkeywordsHandler<'py>,
-        I: IntoIterator<Item = (&'py PyAny, &'py PyAny)>,
+        I: IntoIterator<Item = (PyArg<'py>, PyArg<'py>)>,
     {
         debug_assert_eq!(
             num_positional_parameters,
@@ -374,11 +406,21 @@ impl FunctionDescription {
         );
         let mut positional_only_keyword_arguments = Vec::new();
         for (kwarg_name_py, value) in kwargs {
-            // All keyword arguments should be UTF-8 strings, but we'll check, just in case.
-            // If it isn't, then it will be handled below as a varkeyword (which may raise an
-            // error if this function doesn't accept **kwargs). Rust source is always UTF-8
-            // and so all argument names in `#[pyfunction]` signature must be UTF-8.
-            if let Ok(kwarg_name) = kwarg_name_py.downcast::<PyString>()?.to_str() {
+            // Safety: All keyword arguments should be UTF-8 strings, but if it's not, `.to_str()`
+            // will return an error anyway.
+            #[cfg(any(Py_3_10, not(Py_LIMITED_API)))]
+            let kwarg_name =
+                unsafe { kwarg_name_py.downcast_unchecked::<crate::types::PyString>() }.to_str();
+
+            #[cfg(all(not(Py_3_10), Py_LIMITED_API))]
+            let kwarg_name = kwarg_name_py.extract::<crate::pybacked::PyBackedStr>();
+
+            if let Ok(kwarg_name_owned) = kwarg_name {
+                #[cfg(any(Py_3_10, not(Py_LIMITED_API)))]
+                let kwarg_name = kwarg_name_owned;
+                #[cfg(all(not(Py_3_10), Py_LIMITED_API))]
+                let kwarg_name: &str = &kwarg_name_owned;
+
                 // Try to place parameter in keyword only parameters
                 if let Some(i) = self.find_keyword_parameter_in_keyword_only(kwarg_name) {
                     if output[i + num_positional_parameters]
@@ -397,7 +439,7 @@ impl FunctionDescription {
                         // kwarg to conflict with a postional-only argument - the value
                         // will go into **kwargs anyway.
                         if K::handle_varkeyword(varkeywords, kwarg_name_py, value, self).is_err() {
-                            positional_only_keyword_arguments.push(kwarg_name);
+                            positional_only_keyword_arguments.push(kwarg_name_owned);
                         }
                     } else if output[i].replace(value).is_some() {
                         return Err(self.multiple_values_for_argument(kwarg_name));
@@ -410,6 +452,11 @@ impl FunctionDescription {
         }
 
         if !positional_only_keyword_arguments.is_empty() {
+            #[cfg(all(not(Py_3_10), Py_LIMITED_API))]
+            let positional_only_keyword_arguments: Vec<_> = positional_only_keyword_arguments
+                .iter()
+                .map(std::ops::Deref::deref)
+                .collect();
             return Err(self.positional_only_keyword_arguments(&positional_only_keyword_arguments));
         }
 
@@ -436,7 +483,7 @@ impl FunctionDescription {
     #[inline]
     fn ensure_no_missing_required_positional_arguments(
         &self,
-        output: &[Option<&PyAny>],
+        output: &[Option<PyArg<'_>>],
         positional_args_provided: usize,
     ) -> PyResult<()> {
         if positional_args_provided < self.required_positional_parameters {
@@ -452,7 +499,7 @@ impl FunctionDescription {
     #[inline]
     fn ensure_no_missing_required_keyword_arguments(
         &self,
-        output: &[Option<&PyAny>],
+        output: &[Option<PyArg<'_>>],
     ) -> PyResult<()> {
         let keyword_output = &output[self.positional_parameter_names.len()..];
         for (param, out) in self.keyword_only_parameters.iter().zip(keyword_output) {
@@ -497,11 +544,11 @@ impl FunctionDescription {
     }
 
     #[cold]
-    fn unexpected_keyword_argument(&self, argument: &PyAny) -> PyErr {
+    fn unexpected_keyword_argument(&self, argument: PyArg<'_>) -> PyErr {
         PyTypeError::new_err(format!(
             "{} got an unexpected keyword argument '{}'",
             self.full_name(),
-            argument
+            argument.as_any()
         ))
     }
 
@@ -534,7 +581,7 @@ impl FunctionDescription {
     }
 
     #[cold]
-    fn missing_required_keyword_arguments(&self, keyword_outputs: &[Option<&PyAny>]) -> PyErr {
+    fn missing_required_keyword_arguments(&self, keyword_outputs: &[Option<PyArg<'_>>]) -> PyErr {
         debug_assert_eq!(self.keyword_only_parameters.len(), keyword_outputs.len());
 
         let missing_keyword_only_arguments: Vec<_> = self
@@ -555,7 +602,7 @@ impl FunctionDescription {
     }
 
     #[cold]
-    fn missing_required_positional_arguments(&self, output: &[Option<&PyAny>]) -> PyErr {
+    fn missing_required_positional_arguments(&self, output: &[Option<PyArg<'_>>]) -> PyErr {
         let missing_positional_arguments: Vec<_> = self
             .positional_parameter_names
             .iter()
@@ -575,14 +622,14 @@ pub trait VarargsHandler<'py> {
     /// Called by `FunctionDescription::extract_arguments_fastcall` with any additional arguments.
     fn handle_varargs_fastcall(
         py: Python<'py>,
-        varargs: &[Option<&PyAny>],
+        varargs: &[Option<PyArg<'py>>],
         function_description: &FunctionDescription,
     ) -> PyResult<Self::Varargs>;
     /// Called by `FunctionDescription::extract_arguments_tuple_dict` with the original tuple.
     ///
     /// Additional arguments are those in the tuple slice starting from `function_description.positional_parameter_names.len()`.
     fn handle_varargs_tuple(
-        args: &'py PyTuple,
+        args: &Bound<'py, PyTuple>,
         function_description: &FunctionDescription,
     ) -> PyResult<Self::Varargs>;
 }
@@ -596,7 +643,7 @@ impl<'py> VarargsHandler<'py> for NoVarargs {
     #[inline]
     fn handle_varargs_fastcall(
         _py: Python<'py>,
-        varargs: &[Option<&PyAny>],
+        varargs: &[Option<PyArg<'py>>],
         function_description: &FunctionDescription,
     ) -> PyResult<Self::Varargs> {
         let extra_arguments = varargs.len();
@@ -610,7 +657,7 @@ impl<'py> VarargsHandler<'py> for NoVarargs {
 
     #[inline]
     fn handle_varargs_tuple(
-        args: &'py PyTuple,
+        args: &Bound<'py, PyTuple>,
         function_description: &FunctionDescription,
     ) -> PyResult<Self::Varargs> {
         let positional_parameter_count = function_description.positional_parameter_names.len();
@@ -627,19 +674,19 @@ impl<'py> VarargsHandler<'py> for NoVarargs {
 pub struct TupleVarargs;
 
 impl<'py> VarargsHandler<'py> for TupleVarargs {
-    type Varargs = &'py PyTuple;
+    type Varargs = Bound<'py, PyTuple>;
     #[inline]
     fn handle_varargs_fastcall(
         py: Python<'py>,
-        varargs: &[Option<&PyAny>],
+        varargs: &[Option<PyArg<'py>>],
         _function_description: &FunctionDescription,
     ) -> PyResult<Self::Varargs> {
-        Ok(PyTuple::new_bound(py, varargs).into_gil_ref())
+        Ok(PyTuple::new_bound(py, varargs))
     }
 
     #[inline]
     fn handle_varargs_tuple(
-        args: &'py PyTuple,
+        args: &Bound<'py, PyTuple>,
         function_description: &FunctionDescription,
     ) -> PyResult<Self::Varargs> {
         let positional_parameters = function_description.positional_parameter_names.len();
@@ -652,8 +699,8 @@ pub trait VarkeywordsHandler<'py> {
     type Varkeywords: Default;
     fn handle_varkeyword(
         varkeywords: &mut Self::Varkeywords,
-        name: &'py PyAny,
-        value: &'py PyAny,
+        name: PyArg<'py>,
+        value: PyArg<'py>,
         function_description: &FunctionDescription,
     ) -> PyResult<()>;
 }
@@ -666,8 +713,8 @@ impl<'py> VarkeywordsHandler<'py> for NoVarkeywords {
     #[inline]
     fn handle_varkeyword(
         _varkeywords: &mut Self::Varkeywords,
-        name: &'py PyAny,
-        _value: &'py PyAny,
+        name: PyArg<'py>,
+        _value: PyArg<'py>,
         function_description: &FunctionDescription,
     ) -> PyResult<()> {
         Err(function_description.unexpected_keyword_argument(name))
@@ -678,28 +725,29 @@ impl<'py> VarkeywordsHandler<'py> for NoVarkeywords {
 pub struct DictVarkeywords;
 
 impl<'py> VarkeywordsHandler<'py> for DictVarkeywords {
-    type Varkeywords = Option<&'py PyDict>;
+    type Varkeywords = Option<Bound<'py, PyDict>>;
     #[inline]
     fn handle_varkeyword(
         varkeywords: &mut Self::Varkeywords,
-        name: &'py PyAny,
-        value: &'py PyAny,
+        name: PyArg<'py>,
+        value: PyArg<'py>,
         _function_description: &FunctionDescription,
     ) -> PyResult<()> {
         varkeywords
-            .get_or_insert_with(|| PyDict::new_bound(name.py()).into_gil_ref())
+            .get_or_insert_with(|| PyDict::new_bound(name.py()))
             .set_item(name, value)
     }
 }
 
 fn push_parameter_list(msg: &mut String, parameter_names: &[&str]) {
+    let len = parameter_names.len();
     for (i, parameter) in parameter_names.iter().enumerate() {
         if i != 0 {
-            if parameter_names.len() > 2 {
+            if len > 2 {
                 msg.push(',');
             }
 
-            if i == parameter_names.len() - 1 {
+            if i == len - 1 {
                 msg.push_str(" and ")
             } else {
                 msg.push(' ')
@@ -778,7 +826,7 @@ mod tests {
             };
             assert_eq!(
                 err.to_string(),
-                "TypeError: 'int' object cannot be converted to 'PyString'"
+                "TypeError: example() got an unexpected keyword argument '1'"
             );
         })
     }
diff --git a/src/impl_/pymethods.rs b/src/impl_/pymethods.rs
index 0b73ce9bc73..70c95ca0883 100644
--- a/src/impl_/pymethods.rs
+++ b/src/impl_/pymethods.rs
@@ -38,14 +38,15 @@ pub type ipowfunc = unsafe extern "C" fn(
 impl IPowModulo {
     #[cfg(Py_3_8)]
     #[inline]
-    pub fn to_borrowed_any(self, py: Python<'_>) -> &PyAny {
-        unsafe { py.from_borrowed_ptr::<PyAny>(self.0) }
+    pub fn as_ptr(self) -> *mut ffi::PyObject {
+        self.0
     }
 
     #[cfg(not(Py_3_8))]
     #[inline]
-    pub fn to_borrowed_any(self, py: Python<'_>) -> &PyAny {
-        unsafe { py.from_borrowed_ptr::<PyAny>(ffi::Py_None()) }
+    pub fn as_ptr(self) -> *mut ffi::PyObject {
+        // Safety: returning a borrowed pointer to Python `None` singleton
+        unsafe { ffi::Py_None() }
     }
 }
 
@@ -560,3 +561,11 @@ impl<T> From<BoundRef<'_, '_, T>> for Py<T> {
         bound.0.clone().unbind()
     }
 }
+
+impl<'py, T> std::ops::Deref for BoundRef<'_, 'py, T> {
+    type Target = Bound<'py, T>;
+    #[inline]
+    fn deref(&self) -> &Self::Target {
+        self.0
+    }
+}
diff --git a/src/types/dict.rs b/src/types/dict.rs
index 2d215c1f8b9..daae753c6cc 100644
--- a/src/types/dict.rs
+++ b/src/types/dict.rs
@@ -524,6 +524,16 @@ impl<'py> PyDictMethods<'py> for Bound<'py, PyDict> {
     }
 }
 
+impl<'a, 'py> Borrowed<'a, 'py, PyDict> {
+    /// Iterates over the contents of this dictionary without incrementing reference counts.
+    ///
+    /// # Safety
+    /// It must be known that this dictionary will not be modified during iteration.
+    pub(crate) unsafe fn iter_borrowed(self) -> BorrowedDictIter<'a, 'py> {
+        BorrowedDictIter::new(self)
+    }
+}
+
 fn dict_len(dict: &Bound<'_, PyDict>) -> Py_ssize_t {
     #[cfg(any(not(Py_3_8), PyPy, Py_LIMITED_API))]
     unsafe {
@@ -662,6 +672,64 @@ impl<'py> IntoIterator for Bound<'py, PyDict> {
     }
 }
 
+mod borrowed_iter {
+    use super::*;
+
+    /// Variant of the above which is used to iterate the items of the dictionary
+    /// without incrementing reference counts. This is only safe if it's known
+    /// that the dictionary will not be modified during iteration.
+    pub struct BorrowedDictIter<'a, 'py> {
+        dict: Borrowed<'a, 'py, PyDict>,
+        ppos: ffi::Py_ssize_t,
+        len: ffi::Py_ssize_t,
+    }
+
+    impl<'a, 'py> Iterator for BorrowedDictIter<'a, 'py> {
+        type Item = (Borrowed<'a, 'py, PyAny>, Borrowed<'a, 'py, PyAny>);
+
+        #[inline]
+        fn next(&mut self) -> Option<Self::Item> {
+            let mut key: *mut ffi::PyObject = std::ptr::null_mut();
+            let mut value: *mut ffi::PyObject = std::ptr::null_mut();
+
+            // Safety: self.dict lives sufficiently long that the pointer is not dangling
+            if unsafe { ffi::PyDict_Next(self.dict.as_ptr(), &mut self.ppos, &mut key, &mut value) }
+                != 0
+            {
+                let py = self.dict.py();
+                self.len -= 1;
+                // Safety:
+                // - PyDict_Next returns borrowed values
+                // - we have already checked that `PyDict_Next` succeeded, so we can assume these to be non-null
+                Some(unsafe { (key.assume_borrowed(py), value.assume_borrowed(py)) })
+            } else {
+                None
+            }
+        }
+
+        #[inline]
+        fn size_hint(&self) -> (usize, Option<usize>) {
+            let len = self.len();
+            (len, Some(len))
+        }
+    }
+
+    impl ExactSizeIterator for BorrowedDictIter<'_, '_> {
+        fn len(&self) -> usize {
+            self.len as usize
+        }
+    }
+
+    impl<'a, 'py> BorrowedDictIter<'a, 'py> {
+        pub(super) fn new(dict: Borrowed<'a, 'py, PyDict>) -> Self {
+            let len = dict_len(&dict);
+            BorrowedDictIter { dict, ppos: 0, len }
+        }
+    }
+}
+
+pub(crate) use borrowed_iter::BorrowedDictIter;
+
 /// Conversion trait that allows a sequence of tuples to be converted into `PyDict`
 /// Primary use case for this trait is `call` and `call_method` methods as keywords argument.
 pub trait IntoPyDict: Sized {
diff --git a/src/types/string.rs b/src/types/string.rs
index 4a33236b47b..88ebb30b2d1 100644
--- a/src/types/string.rs
+++ b/src/types/string.rs
@@ -354,7 +354,7 @@ impl<'py> PyStringMethods<'py> for Bound<'py, PyString> {
 impl<'a> Borrowed<'a, '_, PyString> {
     #[cfg(any(Py_3_10, not(Py_LIMITED_API)))]
     #[allow(clippy::wrong_self_convention)]
-    fn to_str(self) -> PyResult<&'a str> {
+    pub(crate) fn to_str(self) -> PyResult<&'a str> {
         // PyUnicode_AsUTF8AndSize only available on limited API starting with 3.10.
         let mut size: ffi::Py_ssize_t = 0;
         let data: *const u8 =
diff --git a/src/types/tuple.rs b/src/types/tuple.rs
index caad7d9c0e9..51d33f93460 100644
--- a/src/types/tuple.rs
+++ b/src/types/tuple.rs
@@ -411,7 +411,7 @@ impl<'py> PyTupleMethods<'py> for Bound<'py, PyTuple> {
     }
 
     fn iter_borrowed<'a>(&'a self) -> BorrowedTupleIterator<'a, 'py> {
-        BorrowedTupleIterator::new(self.as_borrowed())
+        self.as_borrowed().iter_borrowed()
     }
 
     fn to_list(&self) -> Bound<'py, PyList> {
@@ -433,6 +433,10 @@ impl<'a, 'py> Borrowed<'a, 'py, PyTuple> {
     unsafe fn get_borrowed_item_unchecked(self, index: usize) -> Borrowed<'a, 'py, PyAny> {
         ffi::PyTuple_GET_ITEM(self.as_ptr(), index as Py_ssize_t).assume_borrowed(self.py())
     }
+
+    pub(crate) fn iter_borrowed(self) -> BorrowedTupleIterator<'a, 'py> {
+        BorrowedTupleIterator::new(self)
+    }
 }
 
 /// Used by `PyTuple::iter()`.