diff --git a/.travis.yml b/.travis.yml
index 66d06fccd..9010ae1c2 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -1,4 +1,3 @@
-sudo: false
 language: python
 dist: xenial
 stages:
@@ -26,7 +25,7 @@ env:
 matrix:
   allow_failures:
     - python: '3.8-dev'
-      env: TOXENV=py38
+      env: TOXENV=py38-xdist
 
 jobs:
   include:
@@ -34,14 +33,12 @@ jobs:
     - env: TOXENV=pypy PYTEST_NO_COVERAGE=1
       python: 'pypy-5.4'
       dist: trusty
-    - env: TOXENV=py34
+    - env: TOXENV=py34-xdist
       python: '3.4'
-    - env: TOXENV=py35
+    - env: TOXENV=py35-xdist
       python: '3.5'
-    - env: TOXENV=py36
+    - env: TOXENV=py36-xdist
       python: '3.6'
-    - env: TOXENV=py38
-      python: '3.8-dev'
     - env: TOXENV=py37
     - &test-macos
       language: generic
@@ -50,15 +47,20 @@ jobs:
       sudo: required
       install:
         - python -m pip install --pre tox
-      env: TOXENV=py27
+      env: TOXENV=py27-xdist
     - <<: *test-macos
-      env: TOXENV=py37
+      env: TOXENV=py37-xdist
       before_install:
         - brew update
         - brew upgrade python
         - brew unlink python
         - brew link python
 
+    # Jobs only run via Travis cron jobs (currently daily).
+    - env: TOXENV=py38-xdist
+      python: '3.8-dev'
+      if: type = cron
+
     - stage: baseline
       env: TOXENV=py27-pexpect,py27-trial,py27-numpy
     - env: TOXENV=py37-xdist
diff --git a/changelog/4782.bugfix.rst b/changelog/4782.bugfix.rst
new file mode 100644
index 000000000..12e08d00c
--- /dev/null
+++ b/changelog/4782.bugfix.rst
@@ -0,0 +1 @@
+Fix ``AssertionError`` with collection of broken symlinks with packages.
diff --git a/doc/en/assert.rst b/doc/en/assert.rst
index 186e12853..b119adcf0 100644
--- a/doc/en/assert.rst
+++ b/doc/en/assert.rst
@@ -88,23 +88,30 @@ and if you need to have access to the actual exception info you may use::
 the actual exception raised.  The main attributes of interest are
 ``.type``, ``.value`` and ``.traceback``.
 
-.. versionchanged:: 3.0
+You can pass a ``match`` keyword parameter to the context-manager to test
+that a regular expression matches on the string representation of an exception
+(similar to the ``TestCase.assertRaisesRegexp`` method from ``unittest``)::
 
-In the context manager form you may use the keyword argument
-``message`` to specify a custom failure message::
+    import pytest
 
-     >>> with raises(ZeroDivisionError, message="Expecting ZeroDivisionError"):
-     ...     pass
-     ... Failed: Expecting ZeroDivisionError
+    def myfunc():
+        raise ValueError("Exception 123 raised")
 
-If you want to write test code that works on Python 2.4 as well,
-you may also use two other ways to test for an expected exception::
+    def test_match():
+        with pytest.raises(ValueError, match=r'.* 123 .*'):
+            myfunc()
+
+The regexp parameter of the ``match`` method is matched with the ``re.search``
+function, so in the above example ``match='123'`` would have worked as
+well.
+
+There's an alternate form of the ``pytest.raises`` function where you pass
+a function that will be executed with the given ``*args`` and ``**kwargs`` and
+assert that the given exception is raised::
 
     pytest.raises(ExpectedException, func, *args, **kwargs)
 
-which will execute the specified function with args and kwargs and
-assert that the given ``ExpectedException`` is raised.  The reporter will
-provide you with helpful output in case of failures such as *no
+The reporter will provide you with helpful output in case of failures such as *no
 exception* or *wrong exception*.
 
 Note that it is also possible to specify a "raises" argument to
@@ -121,23 +128,6 @@ exceptions your own code is deliberately raising, whereas using
 like documenting unfixed bugs (where the test describes what "should" happen)
 or bugs in dependencies.
 
-Also, the context manager form accepts a ``match`` keyword parameter to test
-that a regular expression matches on the string representation of an exception
-(like the ``TestCase.assertRaisesRegexp`` method from ``unittest``)::
-
-    import pytest
-
-    def myfunc():
-        raise ValueError("Exception 123 raised")
-
-    def test_match():
-        with pytest.raises(ValueError, match=r'.* 123 .*'):
-            myfunc()
-
-The regexp parameter of the ``match`` method is matched with the ``re.search``
-function. So in the above example ``match='123'`` would have worked as
-well.
-
 
 .. _`assertwarns`:
 
diff --git a/doc/en/talks.rst b/doc/en/talks.rst
index aa1fb00e7..be0c6fb9f 100644
--- a/doc/en/talks.rst
+++ b/doc/en/talks.rst
@@ -25,6 +25,9 @@ Talks and blog postings
 
 - pytest: recommendations, basic packages for testing in Python and Django, Andreu Vallbona, PyconES 2017 (`slides in english <http://talks.apsl.io/testing-pycones-2017/>`_, `video in spanish <https://www.youtube.com/watch?v=K20GeR-lXDk>`_)
 
+- `pytest advanced, Andrew Svetlov (Russian, PyCon Russia, 2016)
+  <https://www.youtube.com/watch?v=7KgihdKTWY4>`_.
+
 - `Pythonic testing, Igor Starikov (Russian, PyNsk, November 2016)
   <https://www.youtube.com/watch?v=_92nfdd5nK8>`_.
 
diff --git a/src/_pytest/main.py b/src/_pytest/main.py
index b49de86fb..6e639d872 100644
--- a/src/_pytest/main.py
+++ b/src/_pytest/main.py
@@ -618,7 +618,12 @@ class Session(nodes.FSCollector):
                 yield y
 
     def _collectfile(self, path, handle_dupes=True):
-        assert path.isfile()
+        assert path.isfile(), "%r is not a file (isdir=%r, exists=%r, islink=%r)" % (
+            path,
+            path.isdir(),
+            path.exists(),
+            path.islink(),
+        )
         ihook = self.gethookproxy(path)
         if not self.isinitpath(path):
             if ihook.pytest_ignore_collect(path=path, config=self.config):
diff --git a/src/_pytest/nodes.py b/src/_pytest/nodes.py
index 00ec80894..ce02e70cd 100644
--- a/src/_pytest/nodes.py
+++ b/src/_pytest/nodes.py
@@ -113,11 +113,12 @@ class Node(object):
 
         :raise ValueError: if ``warning`` instance is not a subclass of PytestWarning.
 
-        Example usage::
+        Example usage:
 
         .. code-block:: python
 
             node.warn(PytestWarning("some message"))
+
         """
         from _pytest.warning_types import PytestWarning
 
diff --git a/src/_pytest/python.py b/src/_pytest/python.py
index 48962d137..215015d27 100644
--- a/src/_pytest/python.py
+++ b/src/_pytest/python.py
@@ -599,7 +599,12 @@ class Package(Module):
         return proxy
 
     def _collectfile(self, path, handle_dupes=True):
-        assert path.isfile()
+        assert path.isfile(), "%r is not a file (isdir=%r, exists=%r, islink=%r)" % (
+            path,
+            path.isdir(),
+            path.exists(),
+            path.islink(),
+        )
         ihook = self.gethookproxy(path)
         if not self.isinitpath(path):
             if ihook.pytest_ignore_collect(path=path, config=self.config):
@@ -632,7 +637,8 @@ class Package(Module):
         pkg_prefixes = set()
         for path in this_path.visit(rec=self._recurse, bf=True, sort=True):
             # We will visit our own __init__.py file, in which case we skip it.
-            if path.isfile():
+            is_file = path.isfile()
+            if is_file:
                 if path.basename == "__init__.py" and path.dirpath() == this_path:
                     continue
 
@@ -643,12 +649,14 @@ class Package(Module):
             ):
                 continue
 
-            if path.isdir():
-                if path.join("__init__.py").check(file=1):
-                    pkg_prefixes.add(path)
-            else:
+            if is_file:
                 for x in self._collectfile(path):
                     yield x
+            elif not path.isdir():
+                # Broken symlink or invalid/missing file.
+                continue
+            elif path.join("__init__.py").check(file=1):
+                pkg_prefixes.add(path)
 
 
 def _get_xunit_setup_teardown(holder, attr_name, param_obj=None):
diff --git a/src/_pytest/terminal.py b/src/_pytest/terminal.py
index b2e418030..eda0c0905 100644
--- a/src/_pytest/terminal.py
+++ b/src/_pytest/terminal.py
@@ -280,7 +280,9 @@ class TerminalReporter(object):
 
     def write_fspath_result(self, nodeid, res, **markup):
         fspath = self.config.rootdir.join(nodeid.split("::")[0])
-        if fspath != self.currentfspath:
+        # NOTE: explicitly check for None to work around py bug, and for less
+        # overhead in general (https://github.com/pytest-dev/py/pull/207).
+        if self.currentfspath is None or fspath != self.currentfspath:
             if self.currentfspath is not None and self._show_progress_info:
                 self._write_progress_information_filling_space()
             self.currentfspath = fspath
diff --git a/src/_pytest/tmpdir.py b/src/_pytest/tmpdir.py
index 843c8ca37..4d109cc2b 100644
--- a/src/_pytest/tmpdir.py
+++ b/src/_pytest/tmpdir.py
@@ -31,7 +31,7 @@ class TempPathFactory(object):
         # using os.path.abspath() to get absolute path instead of resolve() as it
         # does not work the same in all platforms (see #4427)
         # Path.absolute() exists, but it is not public (see https://bugs.python.org/issue25012)
-        convert=attr.converters.optional(
+        converter=attr.converters.optional(
             lambda p: Path(os.path.abspath(six.text_type(p)))
         )
     )
diff --git a/testing/test_assertrewrite.py b/testing/test_assertrewrite.py
index a852277cc..bfb6acfab 100644
--- a/testing/test_assertrewrite.py
+++ b/testing/test_assertrewrite.py
@@ -1308,10 +1308,17 @@ class TestEarlyRewriteBailout(object):
     @pytest.mark.skipif(
         sys.platform.startswith("win32"), reason="cannot remove cwd on Windows"
     )
-    def test_cwd_changed(self, testdir):
+    def test_cwd_changed(self, testdir, monkeypatch):
+        # Setup conditions for py's fspath trying to import pathlib on py34
+        # always (previously triggered via xdist only).
+        # Ref: https://github.com/pytest-dev/py/pull/207
+        monkeypatch.setattr(sys, "path", [""] + sys.path)
+        if "pathlib" in sys.modules:
+            del sys.modules["pathlib"]
+
         testdir.makepyfile(
             **{
-                "test_bar.py": """
+                "test_setup_nonexisting_cwd.py": """
                 import os
                 import shutil
                 import tempfile
@@ -1320,7 +1327,7 @@ class TestEarlyRewriteBailout(object):
                 os.chdir(d)
                 shutil.rmtree(d)
             """,
-                "test_foo.py": """
+                "test_test.py": """
                 def test():
                     pass
             """,
diff --git a/testing/test_collection.py b/testing/test_collection.py
index 3eb398b9f..97c46d8c2 100644
--- a/testing/test_collection.py
+++ b/testing/test_collection.py
@@ -1206,3 +1206,30 @@ def test_collect_pkg_init_and_file_in_args(testdir):
             "*2 passed in*",
         ]
     )
+
+
+@pytest.mark.skipif(
+    not hasattr(py.path.local, "mksymlinkto"),
+    reason="symlink not available on this platform",
+)
+@pytest.mark.parametrize("use_pkg", (True, False))
+def test_collect_sub_with_symlinks(use_pkg, testdir):
+    sub = testdir.mkdir("sub")
+    if use_pkg:
+        sub.ensure("__init__.py")
+    sub.ensure("test_file.py").write("def test_file(): pass")
+
+    # Create a broken symlink.
+    sub.join("test_broken.py").mksymlinkto("test_doesnotexist.py")
+
+    # Symlink that gets collected.
+    sub.join("test_symlink.py").mksymlinkto("test_file.py")
+
+    result = testdir.runpytest("-v", str(sub))
+    result.stdout.fnmatch_lines(
+        [
+            "sub/test_file.py::test_file PASSED*",
+            "sub/test_symlink.py::test_file PASSED*",
+            "*2 passed in*",
+        ]
+    )