It depends on why you are creating the temporary tables in MySQL.

Frequently, people that are creating temporary tables in other databases are doing so in order to work around limitations that don't exist in Oracle where readers don't block writers and writers don't block readers. In other databases, you commonly copy data from a permanent table to a temporary table so that your process doesn't block some other process that needs the same data. Since Oracle provides multi-version read consistency, however, this isn't necessary (or beneficial) in Oracle-- your process can process the data sitting in the real tables without worrying that it is going to block someone else. If that's the situation you're in, the proper response is simply to remove the temporary tables and process the data from the permanent tables.

Assuming that you really need a temporary copy of the data, you can create global temporary tables. You would create these tables outside of your code just like a permanent table and use them just like a permanent table inside your code. The global temporary table ensures that each session can only see the data that session has inserted. The only difference is that you're not dropping and recreating the structure of the table inside your procedure.

Another alternative would be to pull the data into a PL/SQL collection that you work with rather than using a temporary table. PL/SQL collections are stored in the server's PGA (one of Oracle's memory structures) so you generally want to limit the size of the collection particularly if there is a lot of data to process or there could be many sessions processing data simultaneously. You can do something like

DECLARE
  TYPE emp_tbl IS TABLE OF emp%rowtype;
  l_emps emp_tbl;

  CURSOR emp_cur 
      IS SELECT *
           FROM emp;
BEGIN
  OPEN emp_cur;
  LOOP
    -- Fetch 10 rows at a time from the cursor into the collection.
    -- You'd realistically want a larger limit, something between 100 and 1000 generally
    FETCH emp_cur 
     BULK COLLECT INTO l_emps
    LIMIT 10;

    EXIT WHEN l_emps.COUNT = 0;

    -- An example of manipulating the collection in memory
    FOR i IN 1 .. l_emps.COUNT
    LOOP
      l_emps(i).sal := l_emps(i).sal * 2;
    END LOOP;

    -- And an example of using the collection to update a table
    FORALL i IN 1 .. l_emps.COUNT
      UPDATE emp
         SET sal = l_emps(i).sal
       WHERE empno = l_emps(i).empno;
  END LOOP;
END;

Of course, in the example above, it would be far simpler (and more efficient) to simply issue an UPDATE statement that would double every employee's salary.

What is funny about temporary tables in a stored procedure is not so much the transient existence of the table (which gets dropped upon the DB connection's termination), but the scope of the stored procedure.

Someone asked this question on StackOverflow : Scope of temp tables created in MySQL stored procedure. It has been over a year and nobody answered the question? Let me set the record straight. The fact is: The temp table exists inside and outside of the Stored Procedure, but you can do things with the temporary table only inside the scope of a running Stored Procedure.

According to the Book

Chapter 5 has a subheading Returning Result Sets to Another Stored Procedure.

It says in paragraph 2 on Page 117:

Unfortunately, the only way to pass a result set from one stored procedure to another is to pass the results via a temporary table. This is an awkward solution b, and -- because the temporary table has scope throughout the entire session -- it creates many of the same maintainability issues raised by the use of global variables. but if one stored program needs to supply another stored program with results, then a temporary table can be the best solution.

Looking back at the StackOverflow question, I can see someone called the Stored Procedure from the mysql client. Since the mysql client is not a Stored Procedure, the results cannot be manipulated the mysql client level via DML other than doing a SELECT to see the results. Since you calling a recursive stored procedure, you can rest assured the temp table is fully accessible for the duration of the DB Connection.

I hope this answers your question.

UPDATE 2014-01-31 11:26 EST

In your last comment, you said

If we employ persistent connections, will the MEMORY table persist through multiple REQUESTS, and it seems it will, so for performance sake, I'm assuming that using this method will *REQUIRE us to explicitly DROP the temporary MEMORY table. Do I assume correctly?

Yes and No. I say Yes because it is one way to do it. I say no because another way to do it is:

CREATE TEMPORARY TABLE IF NOT EXISTS id_list (iid CHAR(32) NOT NULL) ENGINE=memory;
TRUNCATE TABLE id_list;

Whichever way you choose, the operation is still the same since TRUNCATE TABLE drops and recreates the table. This will not harm other DB Connections since each Connection has its own id_list table.