diff --git a/newsfragments/2632.changed.md b/newsfragments/2632.changed.md
new file mode 100644
index 00000000000..8a957fa0ba7
--- /dev/null
+++ b/newsfragments/2632.changed.md
@@ -0,0 +1,11 @@
+`impl FromPyObject for Vec<T>` will accept any Python object that can be turned into an iterator via Python's built-in `iter` function. It will also not reject `str` anymore which can be iterated as a sequence of `str` objects, i.e. [#2500](https://github.com/PyO3/pyo3/pull/2500) was reverted. Please use a type like
+
+```rust
+#[derive(FromPyObject)]
+pub enum OneOrMany<'py> {
+    One(&'py PyString),
+    Many(Vec<&'py PyString>),
+}
+```
+
+if you would like to work around this edge case for callers of your API.
diff --git a/pytests/tests/test_sequence.py b/pytests/tests/test_sequence.py
index 91aac50ac72..dc44a50defc 100644
--- a/pytests/tests/test_sequence.py
+++ b/pytests/tests/test_sequence.py
@@ -17,8 +17,7 @@ def test_vec_from_bytes():
 
 
 def test_vec_from_str():
-    with pytest.raises(TypeError):
-        sequence.vec_to_vec_pystring("123")
+    assert sequence.vec_to_vec_pystring("123") == ["1", "2", "3"]
 
 
 @pytest.mark.skipif(
diff --git a/src/types/sequence.rs b/src/types/sequence.rs
index 9fa4010c732..a7ed74b246c 100644
--- a/src/types/sequence.rs
+++ b/src/types/sequence.rs
@@ -1,11 +1,10 @@
 // Copyright (c) 2017-present PyO3 Project and Contributors
 use crate::err::{self, PyDowncastError, PyErr, PyResult};
-use crate::exceptions::PyTypeError;
 use crate::inspect::types::TypeInfo;
 use crate::internal_tricks::get_ssize_index;
 use crate::once_cell::GILOnceCell;
 use crate::type_object::PyTypeInfo;
-use crate::types::{PyAny, PyList, PyString, PyTuple, PyType};
+use crate::types::{PyAny, PyList, PyTuple, PyType};
 use crate::{ffi, PyNativeType, ToPyObject};
 use crate::{AsPyPointer, IntoPy, IntoPyPointer, Py, Python};
 use crate::{FromPyObject, PyTryFrom};
@@ -284,9 +283,6 @@ where
     T: FromPyObject<'a>,
 {
     fn extract(obj: &'a PyAny) -> PyResult<Self> {
-        if let Ok(true) = obj.is_instance_of::<PyString>() {
-            return Err(PyTypeError::new_err("Can't extract `str` to `Vec`"));
-        }
         extract_sequence(obj)
     }
 
@@ -299,18 +295,9 @@ fn extract_sequence<'s, T>(obj: &'s PyAny) -> PyResult<Vec<T>>
 where
     T: FromPyObject<'s>,
 {
-    // Types that pass `PySequence_Check` usually implement enough of the sequence protocol
-    // to support this function and if not, we will only fail extraction safely.
-    let seq = unsafe {
-        if ffi::PySequence_Check(obj.as_ptr()) != 0 {
-            <PySequence as PyTryFrom>::try_from_unchecked(obj)
-        } else {
-            return Err(PyDowncastError::new(obj, "Sequence").into());
-        }
-    };
-
-    let mut v = Vec::with_capacity(seq.len().unwrap_or(0));
-    for item in seq.iter()? {
+    let iter = obj.iter()?;
+    let mut v = Vec::with_capacity(obj.len().unwrap_or(0));
+    for item in iter {
         v.push(item?.extract::<T>()?);
     }
     Ok(v)
@@ -414,14 +401,23 @@ mod tests {
     }
 
     #[test]
-    fn test_strings_cannot_be_extracted_to_vec() {
+    fn test_strings_can_be_extracted_to_vec() {
         Python::with_gil(|py| {
             let v = "London Calling";
             let ob = v.to_object(py);
 
-            assert!(ob.extract::<Vec<&str>>(py).is_err());
-            assert!(ob.extract::<Vec<String>>(py).is_err());
-            assert!(ob.extract::<Vec<char>>(py).is_err());
+            assert_eq!(
+                ob.extract::<Vec<&str>>(py).unwrap(),
+                ["L", "o", "n", "d", "o", "n", " ", "C", "a", "l", "l", "i", "n", "g"]
+            );
+            assert_eq!(
+                ob.extract::<Vec<String>>(py).unwrap(),
+                ["L", "o", "n", "d", "o", "n", " ", "C", "a", "l", "l", "i", "n", "g"]
+            );
+            assert_eq!(
+                ob.extract::<Vec<char>>(py).unwrap(),
+                ['L', 'o', 'n', 'd', 'o', 'n', ' ', 'C', 'a', 'l', 'l', 'i', 'n', 'g']
+            );
         });
     }