diff --git a/docs/source/reference/changelog.rst b/docs/source/reference/changelog.rst
index 103cea15..79440f45 100644
--- a/docs/source/reference/changelog.rst
+++ b/docs/source/reference/changelog.rst
@@ -2,6 +2,11 @@
 Changelog
 =========
 
+0.23.1 (2023-12-03)
+===================
+- Fixes a bug that caused an internal pytest error when using module-level skips `#701 <https://github.com/pytest-dev/pytest-asyncio/issues/701>`_
+
+
 0.23.0 (2023-12-03)
 ===================
 This release is backwards-compatible with v0.21.
diff --git a/pytest_asyncio/plugin.py b/pytest_asyncio/plugin.py
index 892d8237..fb0ed226 100644
--- a/pytest_asyncio/plugin.py
+++ b/pytest_asyncio/plugin.py
@@ -28,6 +28,7 @@
 )
 
 import pytest
+from _pytest.outcomes import OutcomeException
 from pytest import (
     Class,
     Collector,
@@ -607,7 +608,15 @@ def scoped_event_loop(
     # know it exists. We work around this by attaching the fixture function to the
     # collected Python class, where it will be picked up by pytest.Class.collect()
     # or pytest.Module.collect(), respectively
-    collector.obj.__pytest_asyncio_scoped_event_loop = scoped_event_loop
+    try:
+        collector.obj.__pytest_asyncio_scoped_event_loop = scoped_event_loop
+    except (OutcomeException, Collector.CollectError):
+        # Accessing Module.obj triggers a module import executing module-level
+        # statements. A module-level pytest.skip statement raises the "Skipped"
+        # OutcomeException or a Collector.CollectError, if the "allow_module_level"
+        # kwargs is missing. These cases are handled correctly when they happen inside
+        # Collector.collect(), but this hook runs before the actual collect call.
+        return
     # When collector is a package, collector.obj is the package's __init__.py.
     # pytest doesn't seem to collect fixtures in __init__.py.
     # Using parsefactories to collect fixtures in __init__.py their baseid will end
diff --git a/tests/test_pytest_skip.py b/tests/test_pytest_skip.py
new file mode 100644
index 00000000..17d0befc
--- /dev/null
+++ b/tests/test_pytest_skip.py
@@ -0,0 +1,90 @@
+from textwrap import dedent
+
+from pytest import Pytester
+
+
+def test_asyncio_strict_mode_skip(pytester: Pytester):
+    pytester.makepyfile(
+        dedent(
+            """\
+                import pytest
+
+                pytest_plugins = "pytest_asyncio"
+
+                @pytest.mark.asyncio
+                async def test_no_warning_on_skip():
+                    pytest.skip("Test a skip error inside asyncio")
+            """
+        )
+    )
+    result = pytester.runpytest("--asyncio-mode=strict")
+    result.assert_outcomes(skipped=1)
+
+
+def test_asyncio_auto_mode_skip(pytester: Pytester):
+    pytester.makepyfile(
+        dedent(
+            """\
+                import pytest
+
+                pytest_plugins = "pytest_asyncio"
+
+                async def test_no_warning_on_skip():
+                    pytest.skip("Test a skip error inside asyncio")
+            """
+        )
+    )
+    result = pytester.runpytest("--asyncio-mode=auto")
+    result.assert_outcomes(skipped=1)
+
+
+def test_asyncio_strict_mode_module_level_skip(pytester: Pytester):
+    pytester.makepyfile(
+        dedent(
+            """\
+                import pytest
+
+                pytest.skip("Skip all tests", allow_module_level=True)
+
+                @pytest.mark.asyncio
+                async def test_is_skipped():
+                    pass
+            """
+        )
+    )
+    result = pytester.runpytest("--asyncio-mode=strict")
+    result.assert_outcomes(skipped=1)
+
+
+def test_asyncio_auto_mode_module_level_skip(pytester: Pytester):
+    pytester.makepyfile(
+        dedent(
+            """\
+                import pytest
+
+                pytest.skip("Skip all tests", allow_module_level=True)
+
+                async def test_is_skipped():
+                    pass
+            """
+        )
+    )
+    result = pytester.runpytest("--asyncio-mode=auto")
+    result.assert_outcomes(skipped=1)
+
+
+def test_asyncio_auto_mode_wrong_skip_usage(pytester: Pytester):
+    pytester.makepyfile(
+        dedent(
+            """\
+                import pytest
+
+                pytest.skip("Skip all tests")
+
+                async def test_is_skipped():
+                    pass
+            """
+        )
+    )
+    result = pytester.runpytest("--asyncio-mode=auto")
+    result.assert_outcomes(errors=1)
diff --git a/tests/test_simple.py b/tests/test_simple.py
index c448de92..05c92694 100644
--- a/tests/test_simple.py
+++ b/tests/test_simple.py
@@ -100,41 +100,6 @@ async def test_event_loop_before_fixture(self, loop):
         assert await loop.run_in_executor(None, self.foo) == 1
 
 
-def test_asyncio_marker_compatibility_with_skip(pytester: Pytester):
-    pytester.makepyfile(
-        dedent(
-            """\
-                import pytest
-
-                pytest_plugins = "pytest_asyncio"
-
-                @pytest.mark.asyncio
-                async def test_no_warning_on_skip():
-                    pytest.skip("Test a skip error inside asyncio")
-            """
-        )
-    )
-    result = pytester.runpytest("--asyncio-mode=strict")
-    result.assert_outcomes(skipped=1)
-
-
-def test_asyncio_auto_mode_compatibility_with_skip(pytester: Pytester):
-    pytester.makepyfile(
-        dedent(
-            """\
-                import pytest
-
-                pytest_plugins = "pytest_asyncio"
-
-                async def test_no_warning_on_skip():
-                    pytest.skip("Test a skip error inside asyncio")
-            """
-        )
-    )
-    result = pytester.runpytest("--asyncio-mode=auto")
-    result.assert_outcomes(skipped=1)
-
-
 def test_invalid_asyncio_mode(testdir):
     result = testdir.runpytest("-o", "asyncio_mode=True")
     result.stderr.no_fnmatch_line("INTERNALERROR> *")