diff --git a/crates/vm/src/builtins/builtin_func.rs b/crates/vm/src/builtins/builtin_func.rs
@@ -5,15 +5,19 @@ use crate::{
     common::wtf8::Wtf8,
     convert::TryFromObject,
     function::{Callee, FuncArgs, PyComparisonValue, PyMethodDef, PyMethodFlags, PyNativeFn},
+    object::{Traverse, TraverseFn},
     types::{Callable, Comparable, PyComparisonOp, Representable},
 };
 use alloc::fmt;
 
 // PyCFunctionObject in CPython
 #[repr(C)]
-#[pyclass(name = "builtin_function_or_method", module = false, traverse)]
+#[pyclass(
+    name = "builtin_function_or_method",
+    module = false,
+    traverse = "manual"
+)]
 pub struct PyNativeFunction {
-    #[pytraverse(skip)]
     pub(crate) value: &'static PyMethodDef,
     pub(crate) zelf: Option<PyObjectRef>,
     // Module that owns this function. Not passed as a call argument.
@@ -24,6 +28,23 @@ pub struct PyNativeFunction {
     pub(crate) _method_def_owner: Option<PyObjectRef>,
 }
 
+unsafe impl Traverse for PyNativeFunction {
+    fn traverse(&self, tracer_fn: &mut TraverseFn<'_>) {
+        self.zelf.traverse(tracer_fn);
+        self.module_object.traverse(tracer_fn);
+        self.module.traverse(tracer_fn);
+        self._method_def_owner.traverse(tracer_fn);
+    }
+
+    fn clear(&mut self, out: &mut Vec<PyObjectRef>) {
+        out.extend(self.zelf.take());
+        out.extend(self.module_object.take());
+        // GC has exclusive access while clearing this unreachable object.
+        out.extend(unsafe { self.module.swap(None) });
+        // Keep the definition owner until deallocation: `value` borrows it.
+    }
+}
+
 impl PyPayload for PyNativeFunction {
     fn class(ctx: &Context) -> &'static Py<PyType> {
         ctx.types.builtin_function_or_method_type
@@ -78,7 +99,7 @@ impl PyNativeFunction {
         self.zelf.as_deref().or(self.module_object.as_deref())
     }
 
-    pub const fn as_func(&self) -> &'static dyn PyNativeFn {
+    pub const fn as_func(&self) -> &dyn PyNativeFn {
         self.value.func
     }
 }
@@ -234,12 +255,22 @@ impl PyNativeFunction {
 }
 
 // PyCMethodObject in CPython
-#[pyclass(name = "builtin_function_or_method", module = false, base = PyNativeFunction, ctx = "builtin_function_or_method_type")]
+#[pyclass(name = "builtin_function_or_method", module = false, base = PyNativeFunction, ctx = "builtin_function_or_method_type", traverse = "manual")]
 pub struct PyNativeMethod {
     pub(crate) func: PyNativeFunction,
     pub(crate) class: &'static Py<PyType>, // TODO: the actual life is &'self
 }
 
+unsafe impl Traverse for PyNativeMethod {
+    fn traverse(&self, tracer_fn: &mut TraverseFn<'_>) {
+        self.func.traverse(tracer_fn);
+    }
+
+    fn clear(&mut self, out: &mut Vec<PyObjectRef>) {
+        self.func.clear(out);
+    }
+}
+
 // All Python-visible behavior (getters, slots) is registered by PyNativeFunction::extend_class.
 // PyNativeMethod only extends the Rust-side struct with the defining class reference.
 // The func field at offset 0 (#[repr(C)]) allows NativeFunctionOrMethod to read it safely.

diff --git a/crates/vm/src/builtins/descriptor.rs b/crates/vm/src/builtins/descriptor.rs
@@ -8,6 +8,7 @@ use crate::{
     function::{
         Callee, FuncArgs, ItemDoc, PyMethodDef, PyMethodFlags, PySetterValue, PySsize, plain_doc,
     },
+    object::{Traverse, TraverseFn},
     protocol::{PyNumberBinaryFunc, PyNumberTernaryFunc, PyNumberUnaryFunc},
     types::{
         Callable, Comparable, DelFunc, DescrGetFunc, DescrSetFunc, GenericMethod, GetDescriptor,
@@ -34,17 +35,37 @@ pub struct PyDescriptorOwned {
     pub qualname: PyRwLock<Option<String>>,
 }
 
-#[pyclass(name = "method_descriptor", module = false)]
+impl PyDescriptor {
+    fn bind(
+        &self,
+        method: &'static PyMethodDef,
+        owner: Option<PyObjectRef>,
+        obj: PyObjectRef,
+        ctx: &Context,
+    ) -> PyRef<PyNativeMethod> {
+        let mut bound = method.to_bound_method(obj, self.typ);
+        bound.func._method_def_owner = owner;
+        bound.into_ref(ctx)
+    }
+}
+
+#[pyclass(name = "method_descriptor", module = false, traverse = "manual")]
 pub struct PyMethodDescriptor {
     #[pymember(name = "__objclass__", path = "typ")]
     #[pymember(name = "__name__", path = "name")]
     pub common: PyDescriptor,
-    pub method: &'static PyMethodDef,
+    pub(crate) method: &'static PyMethodDef,
     // vectorcall: vector_call_func,
     /// Prevent HeapMethodDef from being freed while this descriptor references it
     pub(crate) _method_def_owner: Option<PyObjectRef>,
 }
 
+unsafe impl Traverse for PyMethodDescriptor {
+    fn traverse(&self, tracer_fn: &mut TraverseFn<'_>) {
+        self._method_def_owner.traverse(tracer_fn);
+    }
+}
+
 impl PyMethodDescriptor {
     pub fn new(method: &'static PyMethodDef, typ: &'static Py<PyType>, ctx: &Context) -> Self {
         Self {
@@ -125,7 +146,8 @@ impl Callable for PyMethodDescriptor {
 
 impl PyMethodDescriptor {
     pub fn bind(&self, obj: PyObjectRef, ctx: &Context) -> PyRef<PyNativeMethod> {
-        self.method.build_bound_method(ctx, obj, self.common.typ)
+        self.common
+            .bind(self.method, self._method_def_owner.clone(), obj, ctx)
     }
 }
 
@@ -173,15 +195,21 @@ impl Representable for PyMethodDescriptor {
 }
 
 // METH_CLASS descriptors. Same layout as method_descriptor; a distinct type.
-#[pyclass(name = "classmethod_descriptor", module = false)]
+#[pyclass(name = "classmethod_descriptor", module = false, traverse = "manual")]
 pub struct PyClassMethodDescriptor {
     #[pymember(name = "__objclass__", path = "typ")]
     #[pymember(name = "__name__", path = "name")]
     pub common: PyDescriptor,
-    pub method: &'static PyMethodDef,
+    pub(crate) method: &'static PyMethodDef,
     pub(crate) _method_def_owner: Option<PyObjectRef>,
 }
 
+unsafe impl Traverse for PyClassMethodDescriptor {
+    fn traverse(&self, tracer_fn: &mut TraverseFn<'_>) {
+        self._method_def_owner.traverse(tracer_fn);
+    }
+}
+
 impl PyClassMethodDescriptor {
     pub fn new(method: &'static PyMethodDef, typ: &'static Py<PyType>, ctx: &Context) -> Self {
         Self {
@@ -196,7 +224,8 @@ impl PyClassMethodDescriptor {
     }
 
     pub fn bind(&self, obj: PyObjectRef, ctx: &Context) -> PyRef<PyNativeMethod> {
-        self.method.build_bound_method(ctx, obj, self.common.typ)
+        self.common
+            .bind(self.method, self._method_def_owner.clone(), obj, ctx)
     }
 }
 

diff --git a/crates/vm/src/function/method.rs b/crates/vm/src/function/method.rs
@@ -375,15 +375,51 @@ impl core::fmt::Debug for PyMethodDef {
 // This is not a part of CPython API.
 // But useful to support dynamically generated methods
 #[pyclass(name, module = false, ctx = "method_def")]
-#[derive(Debug)]
 pub struct HeapMethodDef {
     method: PyMethodDef,
+    _function_owner: Option<Box<dyn PyNativeFn>>,
+}
+
+impl core::fmt::Debug for HeapMethodDef {
+    fn fmt(&self, f: &mut core::fmt::Formatter<'_>) -> core::fmt::Result {
+        self.method.fmt(f)
+    }
 }
 
 impl HeapMethodDef {
     #[must_use]
     pub const fn new(method: PyMethodDef) -> Self {
-        Self { method }
+        Self {
+            method,
+            _function_owner: None,
+        }
+    }
+
+    pub(crate) fn with_owned_function(
+        name: &'static str,
+        function: Box<dyn PyNativeFn>,
+        flags: PyMethodFlags,
+        doc: super::ItemDoc,
+    ) -> Self {
+        // SAFETY: the box has a stable address and is retained by this payload.
+        // The definition is private; all functions/descriptors referring to it
+        // retain this HeapMethodDef and expose no static reference to callers.
+        let func = unsafe { &*core::ptr::from_ref(&*function) };
+        Self {
+            method: PyMethodDef {
+                name,
+                func,
+                flags,
+                #[cfg(feature = "doc")]
+                doc_off: doc.offset,
+                #[cfg(feature = "doc")]
+                doc_len: doc.len,
+                #[cfg(feature = "doc")]
+                doc_body_pending: false,
+                doc: doc.text,
+            },
+            _function_owner: Some(function),
+        }
     }
 }
 
@@ -431,3 +467,53 @@ pub(crate) fn init(ctx: &'static Context) {
 
     let _ = ctx.intern_str(HeapMethodDef::NAME);
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use crate::{AsObject, function::FuncArgs};
+
+    #[test]
+    fn generated_functions_own_and_release_their_native_captures() {
+        use alloc::sync::Arc;
+        let captured = Arc::new(17);
+        crate::Interpreter::without_stdlib(Default::default()).enter(|vm| {
+            let capture = captured.clone();
+            let definition = vm.ctx.new_method_def(
+                "captured",
+                move |_args: FuncArgs| *capture,
+                PyMethodFlags::empty(),
+                super::super::ItemDoc::NONE,
+            );
+            let function = definition.build_function(vm, None);
+            let descriptor = definition.build_method(vm.ctx.types.object_type, vm);
+            drop(definition);
+            assert_eq!(Arc::strong_count(&captured), 2);
+            assert_eq!(
+                function
+                    .as_object()
+                    .call((), vm)
+                    .unwrap()
+                    .try_into_value::<i32>(vm)
+                    .unwrap(),
+                17
+            );
+            let method = descriptor.bind(vm.ctx.none(), &vm.ctx);
+            assert!(method.func._method_def_owner.is_some());
+            drop(function);
+            drop(descriptor);
+            assert_eq!(Arc::strong_count(&captured), 2);
+            assert_eq!(
+                method
+                    .as_object()
+                    .call((), vm)
+                    .unwrap()
+                    .try_into_value::<i32>(vm)
+                    .unwrap(),
+                17
+            );
+            drop(method);
+            assert_eq!(Arc::strong_count(&captured), 1);
+        });
+    }
+}
diff --git a/crates/vm/src/vm/context.rs b/crates/vm/src/vm/context.rs
@@ -659,19 +659,7 @@ impl Context {
     where
         F: IntoPyNativeFn<FKind>,
     {
-        let def = PyMethodDef {
-            name,
-            func: Box::leak(Box::new(f.into_func())),
-            flags,
-            #[cfg(feature = "doc")]
-            doc_off: doc.offset,
-            #[cfg(feature = "doc")]
-            doc_len: doc.len,
-            #[cfg(feature = "doc")]
-            doc_body_pending: false,
-            doc: doc.text,
-        };
-        let payload = HeapMethodDef::new(def);
+        let payload = HeapMethodDef::with_owned_function(name, Box::new(f.into_func()), flags, doc);
         PyRef::new_ref(payload, self.types.method_def.to_owned(), None)
     }