diff --git a/changelog/510.bugfix.rst b/changelog/510.bugfix.rst
new file mode 100644
index 00000000..e8bf309a
--- /dev/null
+++ b/changelog/510.bugfix.rst
@@ -0,0 +1 @@
+Fix passing `--basetemp` to subprocesses with pytest 5.4.
diff --git a/src/xdist/workermanage.py b/src/xdist/workermanage.py
index af5241f1..65aef62f 100644
--- a/src/xdist/workermanage.py
+++ b/src/xdist/workermanage.py
@@ -1,12 +1,14 @@
 from __future__ import print_function
+
 import fnmatch
 import os
 import re
 import sys
 
+import execnet
 import py
 import pytest
-import execnet
+from _pytest.tmpdir import TempPathFactory
 
 import xdist.remote
 
@@ -252,9 +254,9 @@ def setup(self):
             args = make_reltoroot(self.nodemanager.roots, args)
         if spec.popen:
             name = "popen-%s" % self.gateway.id
-            if hasattr(self.config, "_tmpdirhandler"):
-                basetemp = self.config._tmpdirhandler.getbasetemp()
-                option_dict["basetemp"] = str(basetemp.join(name))
+            basetemp = TempPathFactory.from_config(self.config).getbasetemp()
+            option_dict["basetemp"] = str(basetemp.joinpath(name))
+
         self.config.hook.pytest_configure_node(node=self)
 
         remote_module = self.config.hook.pytest_xdist_getremotemodule()
diff --git a/testing/acceptance_test.py b/testing/acceptance_test.py
index d93f08ed..d82d07e0 100644
--- a/testing/acceptance_test.py
+++ b/testing/acceptance_test.py
@@ -118,15 +118,31 @@ def test_fail2():
     def test_basetemp_in_subprocesses(self, testdir):
         p1 = testdir.makepyfile(
             """
-            def test_send(tmpdir):
-                import py
-                assert tmpdir.relto(py.path.local(%r)), tmpdir
-        """
-            % str(testdir.tmpdir)
+            import py
+
+            def test_send1(tmpdir):
+                assert tmpdir.relto(py.path.local({!r})), tmpdir
+                assert str(tmpdir) == {!r}
+
+            def test_send2(tmpdir):
+                assert tmpdir.relto(py.path.local({!r})), tmpdir
+                assert str(tmpdir) == {!r}
+        """.format(
+                str(testdir.tmpdir),
+                str(
+                    testdir.tmpdir.dirpath()
+                    / "test_basetemp_in_subprocesses0/runpytest-0/popen-gw0/test_send10"
+                ),
+                str(testdir.tmpdir),
+                str(
+                    testdir.tmpdir.dirpath()
+                    / "test_basetemp_in_subprocesses0/runpytest-0/popen-gw1/test_send20"
+                ),
+            )
         )
-        result = testdir.runpytest_subprocess(p1, "-n1")
+        result = testdir.runpytest_subprocess(p1, "-n2")
         assert result.ret == 0
-        result.stdout.fnmatch_lines(["*1 passed*"])
+        result.stdout.fnmatch_lines(["* 2 passed in *"])
 
     def test_dist_ini_specified(self, testdir):
         p1 = testdir.makepyfile(
@@ -766,13 +782,19 @@ def test_tmpdir_disabled(testdir):
     """
     p1 = testdir.makepyfile(
         """
-        def test_ok():
-            pass
-    """
+        def test_ok1(request):
+            assert request.config.option.basetemp == {!r}
+
+        def test_ok2(request):
+            assert request.config.option.basetemp == {!r}
+    """.format(
+            str(testdir.tmpdir.dirpath() / "basetemp" / "popen-gw0"),
+            str(testdir.tmpdir.dirpath() / "basetemp" / "popen-gw1"),
+        )
     )
-    result = testdir.runpytest(p1, "-n1", "-p", "no:tmpdir")
+    result = testdir.runpytest(p1, "-n2", "-p", "no:tmpdir")
     assert result.ret == 0
-    result.stdout.fnmatch_lines("*1 passed*")
+    result.stdout.fnmatch_lines("* 2 passed in *")
 
 
 @pytest.mark.parametrize("plugin", ["xdist.looponfail", "xdist.boxed"])