diff --git a/Lib/test/test_atexit.py b/Lib/test/test_atexit.py
index eb01da6e88a8bc..30c445a9c2a5f3 100644
--- a/Lib/test/test_atexit.py
+++ b/Lib/test/test_atexit.py
@@ -1,9 +1,11 @@
 import atexit
 import os
+import subprocess
 import textwrap
 import unittest
+from test.support import os_helper
 from test import support
-from test.support import script_helper
+from test.support import SuppressCrashReport, script_helper
 from test.support import threading_helper
 
 class GeneralTest(unittest.TestCase):
@@ -133,6 +135,37 @@ def callback():
         self.assertEqual(os.read(r, len(expected)), expected)
         os.close(r)
 
+    # Python built with Py_TRACE_REFS fail with a fatal error in
+    # _PyRefchain_Trace() on memory allocation error.
+    @unittest.skipIf(support.Py_TRACE_REFS, 'cannot test Py_TRACE_REFS build')
+    def test_atexit_with_low_memory(self):
+        # gh-140080: Test that setting low memory after registering an atexit
+        # callback doesn't cause an infinite loop during finalization.
+        code = textwrap.dedent("""
+            import atexit
+            import _testcapi
+
+            def callback():
+                print("hello")
+
+            atexit.register(callback)
+            # Simulate low memory condition
+            _testcapi.set_nomemory(0)
+        """)
+
+        with os_helper.temp_dir() as temp_dir:
+            script = script_helper.make_script(temp_dir, 'test_atexit_script', code)
+            with SuppressCrashReport():
+                with script_helper.spawn_python(script,
+                                                stderr=subprocess.PIPE) as proc:
+                    proc.wait()
+                    stdout = proc.stdout.read()
+                    stderr = proc.stderr.read()
+
+        self.assertIn(proc.returncode, (0, 1))
+        self.assertNotIn(b"hello", stdout)
+        self.assertIn(b"MemoryError", stderr)
+
 
 if __name__ == "__main__":
     unittest.main()