diff --git a/changelog/4108.bugfix.rst b/changelog/4108.bugfix.rst
new file mode 100644
index 00000000000..d136d59961f
--- /dev/null
+++ b/changelog/4108.bugfix.rst
@@ -0,0 +1,5 @@
+Resolve symbolic links for args.
+
+This fixes running ``pytest tests/test_foo.py::test_bar``, where ``tests``
+is a symlink to ``project/app/tests``:
+previously ``project/app/conftest.py`` would be ignored for fixtures then.
diff --git a/src/_pytest/fixtures.py b/src/_pytest/fixtures.py
index 3dec56a351e..1829cf411a4 100644
--- a/src/_pytest/fixtures.py
+++ b/src/_pytest/fixtures.py
@@ -1175,7 +1175,7 @@ def getfixtureinfo(self, node, func, cls, funcargs=True):
     def pytest_plugin_registered(self, plugin):
         nodeid = None
         try:
-            p = py.path.local(plugin.__file__)
+            p = py.path.local(plugin.__file__).realpath()
         except AttributeError:
             pass
         else:
diff --git a/src/_pytest/main.py b/src/_pytest/main.py
index bf4faaf6a9c..0171bda0cd3 100644
--- a/src/_pytest/main.py
+++ b/src/_pytest/main.py
@@ -490,7 +490,7 @@ def _collect(self, arg):
         from _pytest.python import Package
 
         names = self._parsearg(arg)
-        argpath = names.pop(0)
+        argpath = names.pop(0).realpath()
         paths = []
 
         root = self
diff --git a/testing/acceptance_test.py b/testing/acceptance_test.py
index e324f55abbc..2a6c7574028 100644
--- a/testing/acceptance_test.py
+++ b/testing/acceptance_test.py
@@ -753,16 +753,26 @@ def join_pythonpath(*dirs):
             monkeypatch.syspath_prepend(p)
 
         # module picked up in symlink-ed directory:
+        # It picks up local/lib/foo/bar (symlink) via sys.path.
         result = testdir.runpytest("--pyargs", "-v", "foo.bar")
         testdir.chdir()
         assert result.ret == 0
-        result.stdout.fnmatch_lines(
-            [
-                "*lib/foo/bar/test_bar.py::test_bar*PASSED*",
-                "*lib/foo/bar/test_bar.py::test_other*PASSED*",
-                "*2 passed*",
-            ]
-        )
+        if hasattr(py.path.local, "mksymlinkto"):
+            result.stdout.fnmatch_lines(
+                [
+                    "lib/foo/bar/test_bar.py::test_bar <- local/lib/foo/bar/test_bar.py PASSED*",
+                    "lib/foo/bar/test_bar.py::test_other <- local/lib/foo/bar/test_bar.py PASSED*",
+                    "*2 passed*",
+                ]
+            )
+        else:
+            result.stdout.fnmatch_lines(
+                [
+                    "local/lib/foo/bar/test_bar.py::test_bar PASSED*",
+                    "local/lib/foo/bar/test_bar.py::test_other PASSED*",
+                    "*2 passed*",
+                ]
+            )
 
     def test_cmdline_python_package_not_exists(self, testdir):
         result = testdir.runpytest("--pyargs", "tpkgwhatv")
diff --git a/testing/test_conftest.py b/testing/test_conftest.py
index 07da5d5eeab..a2df0ae376b 100644
--- a/testing/test_conftest.py
+++ b/testing/test_conftest.py
@@ -4,7 +4,7 @@
 import py
 import pytest
 from _pytest.config import PytestPluginManager
-from _pytest.main import EXIT_NOTESTSCOLLECTED, EXIT_USAGEERROR
+from _pytest.main import EXIT_NOTESTSCOLLECTED, EXIT_OK, EXIT_USAGEERROR
 
 
 @pytest.fixture(scope="module", params=["global", "inpackage"])
@@ -186,6 +186,52 @@ def pytest_addoption(parser):
     assert "warning: could not load initial" not in result.stdout.str()
 
 
+@pytest.mark.skipif(
+    not hasattr(py.path.local, "mksymlinkto"),
+    reason="symlink not available on this platform",
+)
+def test_conftest_symlink(testdir):
+    """Ensure that conftest.py is used for resolved symlinks."""
+    realtests = testdir.tmpdir.mkdir("real").mkdir("app").mkdir("tests")
+    testdir.tmpdir.join("symlinktests").mksymlinkto(realtests)
+    testdir.makepyfile(
+        **{
+            "real/app/tests/test_foo.py": "def test1(fixture): pass",
+            "real/conftest.py": textwrap.dedent(
+                """
+                import pytest
+
+                print("conftest_loaded")
+
+                @pytest.fixture
+                def fixture():
+                    print("fixture_used")
+                """
+            ),
+        }
+    )
+    result = testdir.runpytest("-vs", "symlinktests")
+    result.stdout.fnmatch_lines(
+        [
+            "*conftest_loaded*",
+            "real/app/tests/test_foo.py::test1 fixture_used",
+            "PASSED",
+        ]
+    )
+    assert result.ret == EXIT_OK
+
+    realtests.ensure("__init__.py")
+    result = testdir.runpytest("-vs", "symlinktests/test_foo.py::test1")
+    result.stdout.fnmatch_lines(
+        [
+            "*conftest_loaded*",
+            "real/app/tests/test_foo.py::test1 fixture_used",
+            "PASSED",
+        ]
+    )
+    assert result.ret == EXIT_OK
+
+
 def test_no_conftest(testdir):
     testdir.makeconftest("assert 0")
     result = testdir.runpytest("--noconftest")