diff --git a/changelog/722.feature.rst b/changelog/722.feature.rst
new file mode 100644
index 0000000..b8654ff
--- /dev/null
+++ b/changelog/722.feature.rst
@@ -0,0 +1 @@
+Full compatibility with pytest 7 - no deprecation warnings or use of legacy features.
diff --git a/src/xdist/looponfail.py b/src/xdist/looponfail.py
index 5ce13a0..b721527 100644
--- a/src/xdist/looponfail.py
+++ b/src/xdist/looponfail.py
@@ -38,7 +38,7 @@ def pytest_cmdline_main(config):
 
 def looponfail_main(config):
     remotecontrol = RemoteControl(config)
-    rootdirs = config.getini("looponfailroots")
+    rootdirs = [py.path.local(root) for root in config.getini("looponfailroots")]
     statrecorder = StatRecorder(rootdirs)
     try:
         while 1:
diff --git a/src/xdist/plugin.py b/src/xdist/plugin.py
index 4f410cc..e65bb4a 100644
--- a/src/xdist/plugin.py
+++ b/src/xdist/plugin.py
@@ -1,10 +1,14 @@
 import os
 import uuid
 import sys
+from pathlib import Path
 
 import py
 import pytest
 
+
+PYTEST_GTE_7 = hasattr(pytest, "version_tuple") and pytest.version_tuple >= (7, 0)  # type: ignore[attr-defined]
+
 _sys_path = list(sys.path)  # freeze a copy of sys.path at interpreter startup
 
 
@@ -147,18 +151,18 @@ def pytest_addoption(parser):
     parser.addini(
         "rsyncdirs",
         "list of (relative) paths to be rsynced for remote distributed testing.",
-        type="pathlist",
+        type="paths" if PYTEST_GTE_7 else "pathlist",
     )
     parser.addini(
         "rsyncignore",
         "list of (relative) glob-style paths to be ignored for rsyncing.",
-        type="pathlist",
+        type="paths" if PYTEST_GTE_7 else "pathlist",
     )
     parser.addini(
         "looponfailroots",
-        type="pathlist",
+        type="paths" if PYTEST_GTE_7 else "pathlist",
         help="directories to check for changes",
-        default=[py.path.local()],
+        default=[Path.cwd() if PYTEST_GTE_7 else py.path.local()],
     )
 
 
diff --git a/src/xdist/workermanage.py b/src/xdist/workermanage.py
index 4b576f9..411ea82 100644
--- a/src/xdist/workermanage.py
+++ b/src/xdist/workermanage.py
@@ -118,8 +118,8 @@ class NodeManager:
     def _getrsyncoptions(self):
         """Get options to be passed for rsync."""
         ignores = list(self.DEFAULT_IGNORES)
-        ignores += self.config.option.rsyncignore
-        ignores += self.config.getini("rsyncignore")
+        ignores += [str(path) for path in self.config.option.rsyncignore]
+        ignores += [str(path) for path in self.config.getini("rsyncignore")]
 
         return {
             "ignores": ignores,