diff --git a/doc/source/whatsnew/v3.0.0.rst b/doc/source/whatsnew/v3.0.0.rst
index afb2f91f65ccd..7639d75af89e1 100644
--- a/doc/source/whatsnew/v3.0.0.rst
+++ b/doc/source/whatsnew/v3.0.0.rst
@@ -624,6 +624,7 @@ Other
 - Bug in :meth:`DataFrame.sort_index` when passing ``axis="columns"`` and ``ignore_index=True`` and ``ascending=False`` not returning a :class:`RangeIndex` columns (:issue:`57293`)
 - Bug in :meth:`DataFrame.transform` that was returning the wrong order unless the index was monotonically increasing. (:issue:`57069`)
 - Bug in :meth:`DataFrame.where` where using a non-bool type array in the function would return a ``ValueError`` instead of a ``TypeError`` (:issue:`56330`)
+- Bug in :meth:`Index.difference` returning too many values / incorrect values for period indexes (:issue:`58971`)
 - Bug in :meth:`Index.sort_values` when passing a key function that turns values into tuples, e.g. ``key=natsort.natsort_key``, would raise ``TypeError`` (:issue:`56081`)
 - Bug in :meth:`Series.diff` allowing non-integer values for the ``periods`` argument. (:issue:`56607`)
 - Bug in :meth:`Series.dt` methods in :class:`ArrowDtype` that were returning incorrect values. (:issue:`57355`)
diff --git a/pandas/core/indexes/base.py b/pandas/core/indexes/base.py
index 71dfff520113c..405491f2644f4 100644
--- a/pandas/core/indexes/base.py
+++ b/pandas/core/indexes/base.py
@@ -3406,7 +3406,7 @@ def difference(self, other, sort=None):
         return self._wrap_difference_result(other, result)
 
     def _difference(self, other, sort):
-        # overridden by RangeIndex
+        # overridden by RangeIndex, PeriodIndex
         this = self
         if isinstance(self, ABCCategoricalIndex) and self.hasnans and other.hasnans:
             this = this.dropna()
diff --git a/pandas/core/indexes/period.py b/pandas/core/indexes/period.py
index edd1fdd4da943..e673b31b56755 100644
--- a/pandas/core/indexes/period.py
+++ b/pandas/core/indexes/period.py
@@ -514,6 +514,15 @@ def shift(self, periods: int = 1, freq=None) -> Self:
             )
         return self + periods
 
+    def _difference(self, other, sort=None) -> PeriodIndex:
+        if isinstance(other, Index) and other.inferred_type == "string":
+            try:
+                other = other.astype(self.dtype)
+            except (TypeError, ValueError):
+                pass
+
+        return super()._difference(other, sort=sort)
+
 
 def period_range(
     start=None,
diff --git a/pandas/tests/indexes/period/test_setops.py b/pandas/tests/indexes/period/test_setops.py
index 2fa7e8cd0d2df..3d31f85975592 100644
--- a/pandas/tests/indexes/period/test_setops.py
+++ b/pandas/tests/indexes/period/test_setops.py
@@ -314,6 +314,19 @@ def test_difference(self, sort):
                 expected = expected.sort_values()
             tm.assert_index_equal(result_difference, expected)
 
+    def test_difference_mismatched_dtypes(self, sort):
+        # GH58971
+        index = period_range("2022-01-01", periods=5, freq="M")
+        other = pd.Index(["2022-02", "2022-03"])
+
+        idx_diff = index.difference(other, sort)
+        expected = PeriodIndex(["2022-01", "2022-04", "2022-05"], freq="M")
+        tm.assert_index_equal(idx_diff, expected)
+
+        idx_diff = other.difference(index, sort)
+        expected = pd.Index([])
+        tm.assert_index_equal(idx_diff, expected)
+
     def test_difference_freq(self, sort):
         # GH14323: difference of Period MUST preserve frequency
         # but the ability to union results must be preserved