diff --git a/Lib/test/test_audit.py b/Lib/test/test_audit.py
index db4e1eb9999c1f..6ec6c7fb436b98 100644
--- a/Lib/test/test_audit.py
+++ b/Lib/test/test_audit.py
@@ -289,6 +289,14 @@ def test_time_fail(self):
         self.assertNotEqual(returncode, 0)
         self.assertIn('hook failed', stderr.splitlines()[-1])
 
+    def test_time_leak(self):
+        import sys
+        import time  # Leaks struct_time_type
+
+        hook = lambda a, b: None
+        sys.addaudithook(hook)
+        t = time.localtime()
+
     def test_sys_monitoring_register_callback(self):
         returncode, events, stderr = self.run_python("test_sys_monitoring_register_callback")
         if returncode:
diff --git a/Misc/NEWS.d/next/Core_and_Builtins/2025-10-31-17-47-44.gh-issue-140860.hexT7T.rst b/Misc/NEWS.d/next/Core_and_Builtins/2025-10-31-17-47-44.gh-issue-140860.hexT7T.rst
new file mode 100644
index 00000000000000..0a91f4033cf9bb
--- /dev/null
+++ b/Misc/NEWS.d/next/Core_and_Builtins/2025-10-31-17-47-44.gh-issue-140860.hexT7T.rst
@@ -0,0 +1,2 @@
+Fix memory leak where modules that create types during initialization
+leak those types when audit hooks are active.
diff --git a/Python/pylifecycle.c b/Python/pylifecycle.c
index 8fcb31cfd12299..2e2fc499379ba5 100644
--- a/Python/pylifecycle.c
+++ b/Python/pylifecycle.c
@@ -2251,6 +2251,9 @@ _Py_Finalize(_PyRuntimeState *runtime)
      */
     PyGC_Collect();
 
+    /* Clear audit hooks before destroying modules to avoid reference cycles */
+    Py_CLEAR(tstate->interp->audit_hooks);
+
     /* Destroy all modules */
     _PyImport_FiniExternal(tstate->interp);
     finalize_modules(tstate);