diff --git a/python_files/tests/pytestadapter/test_utils.py b/python_files/tests/pytestadapter/test_utils.py
index 70201db7d097..939430e833d2 100644
--- a/python_files/tests/pytestadapter/test_utils.py
+++ b/python_files/tests/pytestadapter/test_utils.py
@@ -55,3 +55,38 @@ def test_cached_fsdecode():
     result3 = cached_fsdecode(test_path2)
     assert result3 == os.fspath(test_path2)
     assert result3 != result1
+
+
+def test_hidden_param_discovery(tmp_path):
+    """Test that parameterized test with pytest.HIDDEN_PARAM builds tree without error."""
+    import pytest
+
+    test_file = tmp_path / "test_hidden.py"
+    test_file.write_text(
+        "import pytest\n"
+        "@pytest.mark.parametrize('setup', [pytest.param('setup', id=pytest.HIDDEN_PARAM)])\n"
+        "def test_main(setup):\n"
+        "    assert True\n"
+    )
+
+    class Collector:
+        def __init__(self):
+            self.tree = None
+
+        def pytest_sessionfinish(self, session, exitstatus):  # noqa: ARG002
+            from vscode_pytest import build_test_tree
+
+            self.tree = build_test_tree(session)
+
+    collector = Collector()
+    pytest.main(["--collect-only", f"--rootdir={tmp_path}", str(test_file)], plugins=[collector])
+    assert collector.tree is not None
+    file_nodes = list(collector.tree["children"].values())
+    assert len(file_nodes) == 1
+    file_node = file_nodes[0]
+    assert file_node["name"] == "test_hidden.py"
+    children = file_node["children"]
+    test_nodes = list(children.values() if hasattr(children, "values") else children)
+    assert len(test_nodes) == 1
+    assert test_nodes[0]["name"] == "test_main"
+    assert test_nodes[0]["type_"] == "test"
diff --git a/python_files/vscode_pytest/__init__.py b/python_files/vscode_pytest/__init__.py
index 88f6327f6e8b..0446aec1e10f 100644
--- a/python_files/vscode_pytest/__init__.py
+++ b/python_files/vscode_pytest/__init__.py
@@ -717,7 +717,8 @@ def build_test_tree(session: pytest.Session) -> TestNode:
 
     for test_case in session.items:
         test_node = create_test_node(test_case)
-        if hasattr(test_case, "callspec"):  # This means it is a parameterized test.
+        is_parameterized = hasattr(test_case, "callspec") and "[" in test_node["name"]
+        if is_parameterized:  # This means it is a parameterized test.
             # Process parameterized test and get the function node to use for further processing
             test_node = process_parameterized_test(
                 test_case, test_node, function_nodes_dict, file_nodes_dict
@@ -758,7 +759,7 @@ def build_test_tree(session: pytest.Session) -> TestNode:
             # Check if the class is already a child of the file node.
             if test_class_node is not None:
                 test_file_node["children"].add(test_class_node)
-        elif not hasattr(test_case, "callspec"):
+        elif not is_parameterized:
             # This includes test cases that are pytest functions or a doctests.
             if test_case.parent is None:
                 ERRORS.append(f"Test case {test_case.name} has no parent")