diff --git a/AUTHORS b/AUTHORS
index 625e8535a..7b22002d1 100644
--- a/AUTHORS
+++ b/AUTHORS
@@ -35,6 +35,7 @@ Erik M. Bray
 Florian Bruhin
 Floris Bruynooghe
 Gabriel Reis
+Georgy Dyuldin
 Graham Horler
 Grig Gheorghiu
 Guido Wesdorp
diff --git a/CHANGELOG b/CHANGELOG
index 6e3a73a49..3dd62dd22 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -26,6 +26,9 @@
 - fix #628: fixed internal UnicodeDecodeError when doctests contain unicode.
   Thanks Jason R. Coombs for the report and Bruno Oliveira for the PR.
 
+- fix #1334: Add captured stdout to jUnit XML report on setup error.
+  Thanks Georgy Dyuldin for the PR.
+
 
 2.8.5
 -----
diff --git a/_pytest/junitxml.py b/_pytest/junitxml.py
index 995694687..b0c2b4d3a 100644
--- a/_pytest/junitxml.py
+++ b/_pytest/junitxml.py
@@ -163,6 +163,7 @@ class _NodeReporter(object):
     def append_error(self, report):
         self._add_simple(
             Junit.error, "test setup failure", report.longrepr)
+        self._write_captured_output(report)
 
     def append_skipped(self, report):
         if hasattr(report, "wasxfail"):
diff --git a/testing/test_junitxml.py b/testing/test_junitxml.py
index 0062ab135..e6db81051 100644
--- a/testing/test_junitxml.py
+++ b/testing/test_junitxml.py
@@ -419,6 +419,35 @@ class TestPython:
         systemout = pnode.find_first_by_tag("system-err")
         assert "hello-stderr" in systemout.toxml()
 
+    def test_setup_error_captures_stdout(self, testdir):
+        testdir.makepyfile("""
+            def pytest_funcarg__arg(request):
+                print('hello-stdout')
+                raise ValueError()
+            def test_function(arg):
+                pass
+        """)
+        result, dom = runandparse(testdir)
+        node = dom.find_first_by_tag("testsuite")
+        pnode = node.find_first_by_tag("testcase")
+        systemout = pnode.find_first_by_tag("system-out")
+        assert "hello-stdout" in systemout.toxml()
+
+    def test_setup_error_captures_stderr(self, testdir):
+        testdir.makepyfile("""
+            import sys
+            def pytest_funcarg__arg(request):
+                sys.stderr.write('hello-stderr')
+                raise ValueError()
+            def test_function(arg):
+                pass
+        """)
+        result, dom = runandparse(testdir)
+        node = dom.find_first_by_tag("testsuite")
+        pnode = node.find_first_by_tag("testcase")
+        systemout = pnode.find_first_by_tag("system-err")
+        assert "hello-stderr" in systemout.toxml()
+
 
 def test_mangle_testnames():
     from _pytest.junitxml import mangle_testnames