diff --git a/src/_pytest/python.py b/src/_pytest/python.py
index eb481393ba1..cfc76a73b94 100644
--- a/src/_pytest/python.py
+++ b/src/_pytest/python.py
@@ -693,6 +693,18 @@ def setup(self) -> None:
             self.addfinalizer(func)
 
     def collect(self) -> Iterable[nodes.Item | nodes.Collector]:
+        # Apply package-level pytestmark from __init__.py so markers propagate
+        # to contained tests (regression from Package no longer being a Module).
+        try:
+            init_mod = importtestmodule(self.path / "__init__.py", self.config)
+        except nodes.Collector.CollectError:
+            init_mod = None
+        if init_mod is not None and not getattr(self, "_package_marks_applied", False):
+            marks = get_unpacked_marks(init_mod)
+            self.own_markers.extend(marks)
+            self.keywords.update((mark.name, mark) for mark in marks)
+            self._package_marks_applied = True  # type: ignore[attr-defined]
+
         # Always collect __init__.py first.
         def sort_key(entry: os.DirEntry[str]) -> object:
             return (entry.name != "__init__.py", entry.name)
diff --git a/testing/test_mark.py b/testing/test_mark.py
index 253cda94503..b53a2a8a462 100644
--- a/testing/test_mark.py
+++ b/testing/test_mark.py
@@ -1377,3 +1377,18 @@ def test_something():
     # The module is buggy (__getattr__ returns None for all attributes),
     # so no tests are collected, but pytest should NOT crash with a TypeError.
     assert result.ret != ExitCode.INTERNAL_ERROR
+
+
+def test_package_level_pytestmark_propagates(pytester: Pytester) -> None:
+    """Pytestmark in package __init__.py must apply to tests in the package (#14737)."""
+    pkg = pytester.mkpydir("skippedpkg")
+    pkg.joinpath("__init__.py").write_text(
+        'import pytest\npytestmark = pytest.mark.skip(reason="package is disabled")\n',
+        encoding="utf-8",
+    )
+    pkg.joinpath("test_skipped.py").write_text(
+        "def test_should_be_skipped():\n    assert False\n",
+        encoding="utf-8",
+    )
+    result = pytester.runpytest("-q")
+    result.assert_outcomes(skipped=1)