diff --git a/doc/whats-new.rst b/doc/whats-new.rst
index 8fbce607ed2..db09ad39e3e 100644
--- a/doc/whats-new.rst
+++ b/doc/whats-new.rst
@@ -385,6 +385,12 @@ Bug Fixes
 
 Documentation
 ~~~~~~~~~~~~~
+- Clarified that :py:meth:`DataArray.item` and :py:meth:`Variable.item` are not
+  implemented for lazy (e.g. dask) arrays, both in the method docstring and in the
+  raised error message, which now suggests loading the data into memory first
+  (:issue:`7916`).
+  By `imam <https://github.com/imam2004i>`_.
+
 - Add hidden intersphinx inventory entries for methods, properties and
   attributes at the path where they are defined, e.g.
   ``xarray.core.dataarray.DataArray.sel``. This lets tools such as
diff --git a/xarray/computation/ops.py b/xarray/computation/ops.py
index a351e2a664c..379f936b629 100644
--- a/xarray/computation/ops.py
+++ b/xarray/computation/ops.py
@@ -126,12 +126,29 @@ def _call_possibly_missing_method(arg, name, args, kwargs):
         return method(*args, **kwargs)
 
 
+# Note appended to the inherited NumPy docstring of ``item``, which is not
+# implemented for lazy (e.g. dask) arrays, see
+# duck_array_ops.fail_on_dask_array_input. Inserted before the "Parameters"
+# section so it renders near the top of the method documentation.
+_ITEM_DASK_NOTE = (
+    "\n.. note::\n"
+    "    For xarray objects wrapping a lazy array such as a dask array,\n"
+    "    ``item`` is not implemented and raises ``NotImplementedError``.\n"
+    "    Load the data into memory first, for example with\n"
+    "    ``obj.compute().item()`` or ``obj.as_numpy().item()``.\n"
+)
+
+
 def _values_method_wrapper(name):
     def func(self, *args, **kwargs):
         return _call_possibly_missing_method(self.data, name, args, kwargs)
 
     func.__name__ = name
-    func.__doc__ = getattr(np.ndarray, name).__doc__
+    doc = getattr(np.ndarray, name).__doc__
+    if name == "item" and doc is not None:
+        anchor = "\nParameters\n"
+        doc = doc.replace(anchor, _ITEM_DASK_NOTE + anchor, 1)
+    func.__doc__ = doc
     return func
 
 
diff --git a/xarray/core/duck_array_ops.py b/xarray/core/duck_array_ops.py
index d69d8c8c4a1..3c819ab8a91 100644
--- a/xarray/core/duck_array_ops.py
+++ b/xarray/core/duck_array_ops.py
@@ -110,7 +110,10 @@ def f(*args, **kwargs):
 def fail_on_dask_array_input(values, msg=None, func_name=None):
     if is_duck_dask_array(values):
         if msg is None:
-            msg = "%r is not yet a valid method on dask arrays"
+            msg = (
+                "%r is not yet a valid method on dask arrays. Load the data into "
+                "memory first, e.g. with '.compute()' or '.load()'."
+            )
         if func_name is None:
             func_name = inspect.stack()[1][3]
         raise NotImplementedError(msg % func_name)
diff --git a/xarray/tests/test_dask.py b/xarray/tests/test_dask.py
index fd14ead2e81..70f56457c84 100644
--- a/xarray/tests/test_dask.py
+++ b/xarray/tests/test_dask.py
@@ -271,7 +271,7 @@ def test_missing_methods(self):
         v = self.lazy_var
         with pytest.raises(NotImplementedError, match="dask"):
             v.argsort()
-        with pytest.raises(NotImplementedError, match="dask"):
+        with pytest.raises(NotImplementedError, match="Load the data into memory"):
             v[0].item()  # type: ignore[attr-defined]
 
     def test_univariate_ufunc(self):