diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 0ec965f521..18fd7487d1 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -56,7 +56,7 @@ jobs:
             cxx_compiler: clang++
             cxx_std: 17
             openexr_ver: v3.1.13
-            pybind11_ver: v2.6.2
+            pybind11_ver: v2.7.0
             python_ver: 3.7
             simd: "avx2,f16c"
             fmt_ver: 8.1.1
@@ -147,9 +147,10 @@ jobs:
             python_ver: "3.11"
             simd: "avx2,f16c"
             fmt_ver: 10.1.1
-            pybind11_ver: v2.10.0
-          - desc: oldest gcc9.3/C++17 py3.7 exr-3.1
-            # Oldest versions of the dependencies that we support.
+            pybind11_ver: v2.12.0
+          - desc: oldest/hobbled gcc9.3/C++17 py3.7 exr-3.1 no-sse no-ocio
+            # Oldest versions of the dependencies that we can muster, and various
+            # things disabled (no SSE, OCIO, or OpenCV, don't embed plugins).
             nametag: linux-oldest
             runner: ubuntu-latest
             container: aswf/ci-osl:2021
@@ -157,7 +158,7 @@ jobs:
             cxx_std: 17
             fmt_ver: 7.0.1
             openexr_ver: v3.1.0
-            pybind11_ver: v2.4.2
+            pybind11_ver: v2.7.0
             python_ver: 3.7
             setenvs: export  CMAKE_VERSION=3.15.5
                              PTEX_VERSION=v2.3.2
@@ -174,7 +175,7 @@ jobs:
             cxx_std: 17
             fmt_ver: 7.0.1
             openexr_ver: v3.1.0
-            pybind11_ver: v2.4.2
+            pybind11_ver: v2.7.0
             python_ver: 3.7
             simd: 0
             setenvs: export  EMBEDPLUGINS=0
@@ -304,7 +305,7 @@ jobs:
             cxx_std: 17
             fmt_ver: 10.1.1
             openexr_ver: v3.2.4
-            pybind11_ver: v2.11.1
+            pybind11_ver: v2.12.0
             python_ver: "3.10"
             simd: avx2,f16c
             setenvs: export LIBJPEGTURBO_VERSION=3.0.1
@@ -373,7 +374,7 @@ jobs:
             cxx_std: 20
             fmt_ver: 10.1.1
             openexr_ver: v3.1.13
-            pybind11_ver: v2.9.2
+            pybind11_ver: v2.12.0
             python_ver: 3.8
             simd: avx2,f16c
             setenvs: export LLVM_VERSION=14.0.0
@@ -388,7 +389,7 @@ jobs:
             python_ver: 3.8
             simd: sse4.2
             openexr_ver: v3.1.13
-            pybind11_ver: v2.6.2
+            pybind11_ver: v2.7.0
             setenvs: export CMAKE_BUILD_TYPE=Debug
                             PUGIXML_VERSION=v1.9
                             CTEST_TEST_TIMEOUT=1200
@@ -399,7 +400,7 @@ jobs:
             cxx_std: 17
             openexr_ver: v3.1.13
             python_ver: 3.8
-            pybind11_ver: v2.6.2
+            pybind11_ver: v2.7.0
             setenvs: export BUILD_SHARED_LIBS=OFF
             depcmds: |
               sudo rm -rf /usr/local/include/OpenEXR
diff --git a/INSTALL.md b/INSTALL.md
index 12d96bbd89..dd990924d5 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -36,8 +36,7 @@ NEW or CHANGED MINIMUM dependencies since the last major release are **bold**.
      * OpenGL
  * If you are building the Python bindings or running the testsuite:
      * **Python >= 3.7** (tested through 3.12)
-     * pybind11 >= 2.4.2 (Tested through 2.12. Note that pybind11 v2.10+ does
-       not support Python < 3.6.)
+     * **pybind11 >= 2.7** (tested through 2.12)
      * NumPy
  * If you want support for camera "RAW" formats:
      * **LibRaw >= 0.20** (tested though 0.21.2)
diff --git a/src/build-scripts/build_pybind11.bash b/src/build-scripts/build_pybind11.bash
index 178f944517..7a0dc20563 100755
--- a/src/build-scripts/build_pybind11.bash
+++ b/src/build-scripts/build_pybind11.bash
@@ -11,7 +11,7 @@ set -ex
 
 # Repo and branch/tag/commit of pybind11 to download if we don't have it yet
 PYBIND11_REPO=${PYBIND11_REPO:=https://github.com/pybind/pybind11.git}
-PYBIND11_VERSION=${PYBIND11_VERSION:=v2.8.1}
+PYBIND11_VERSION=${PYBIND11_VERSION:=v2.12.0}
 
 # Where to put pybind11 repo source (default to the ext area)
 PYBIND11_SRC_DIR=${PYBIND11_SRC_DIR:=${PWD}/ext/pybind11}
diff --git a/src/cmake/build_pybind11.cmake b/src/cmake/build_pybind11.cmake
new file mode 100644
index 0000000000..a80c1acd2c
--- /dev/null
+++ b/src/cmake/build_pybind11.cmake
@@ -0,0 +1,36 @@
+# Copyright Contributors to the OpenImageIO project.
+# SPDX-License-Identifier: Apache-2.0
+# https://github.com/AcademySoftwareFoundation/OpenImageIO
+
+######################################################################
+# pybind11 by hand!
+######################################################################
+
+set_cache (pybind11_BUILD_VERSION 2.12.0 "pybind11 version for local builds")
+set (pybind11_GIT_REPOSITORY "https://github.com/pybind/pybind11")
+set (pybind11_GIT_TAG "v${pybind11_BUILD_VERSION}")
+set_cache (pybind11_BUILD_SHARED_LIBS ${LOCAL_BUILD_SHARED_LIBS_DEFAULT}
+           DOC "Should a local pybind11 build, if necessary, build shared libraries" ADVANCED)
+
+string (MAKE_C_IDENTIFIER ${pybind11_BUILD_VERSION} pybind11_VERSION_IDENT)
+
+build_dependency_with_cmake(pybind11
+    VERSION         ${pybind11_BUILD_VERSION}
+    GIT_REPOSITORY  ${pybind11_GIT_REPOSITORY}
+    GIT_TAG         ${pybind11_GIT_TAG}
+    CMAKE_ARGS
+        -D PYBIND11_PYTHON_VERSION=${PYTHON3_VERSION}
+        # Don't built unnecessary parts of Pybind11
+        -D BUILD_TESTING=OFF
+        -D PYBIND11_TEST=OFF
+    )
+
+
+# Signal to caller that we need to find again at the installed location
+set (pybind11_REFIND TRUE)
+set (pybind11_REFIND_ARGS CONFIG)
+set (pybind11_REFIND_VERSION ${pybind11_BUILD_VERSION})
+
+if (pybind11_BUILD_SHARED_LIBS)
+    install_local_dependency_libs (pybind11 pybind11)
+endif ()
diff --git a/src/cmake/externalpackages.cmake b/src/cmake/externalpackages.cmake
index d6b8a53294..698fcb1b29 100644
--- a/src/cmake/externalpackages.cmake
+++ b/src/cmake/externalpackages.cmake
@@ -106,7 +106,7 @@ endif()
 # From pythonutils.cmake
 find_python()
 if (USE_PYTHON)
-    checked_find_package (pybind11 REQUIRED VERSION_MIN 2.4.2)
+    checked_find_package (pybind11 REQUIRED VERSION_MIN 2.7)
 endif ()