diff --git a/playwright.config.ts b/playwright.config.ts
index 0a5703889..e8cd3fd46 100644
--- a/playwright.config.ts
+++ b/playwright.config.ts
@@ -18,6 +18,7 @@ import { WorkerOptions } from './tests/utils';
 
 const config: PlaywrightTestConfig<WorkerOptions> = {
   testDir: './tests',
+  outputDir: './test-results/inner',
   fullyParallel: true,
   forbidOnly: !!process.env.CI,
   workers: process.env.CI ? 1 : undefined,
diff --git a/src/backend.ts b/src/backend.ts
index a3528b76b..804a46884 100644
--- a/src/backend.ts
+++ b/src/backend.ts
@@ -20,41 +20,47 @@ import * as vscodeTypes from './vscodeTypes';
 import EventEmitter from 'events';
 import { WebSocketTransport } from './transport';
 
+export type BackendServerOptions<T extends BackendClient> = {
+  args: string[],
+  cwd: string,
+  envProvider: () => NodeJS.ProcessEnv,
+  clientFactory: () => T,
+  dumpIO?: boolean,
+};
+
 export class BackendServer<T extends BackendClient> {
   private _vscode: vscodeTypes.VSCode;
-  private _args: string[];
-  private _cwd: string;
-  private _envProvider: () => NodeJS.ProcessEnv;
-  private _clientFactory: () => T;
+  private _options: BackendServerOptions<T>;
 
-  constructor(vscode: vscodeTypes.VSCode, args: string[], cwd: string, envProvider: () => NodeJS.ProcessEnv, clientFactory: () => T) {
+  constructor(vscode: vscodeTypes.VSCode, options: BackendServerOptions<T>) {
     this._vscode = vscode;
-    this._args = args;
-    this._cwd = cwd;
-    this._envProvider = envProvider;
-    this._clientFactory = clientFactory;
+    this._options = options;
   }
 
   async start(): Promise<T | null> {
-    const node = await findNode(this._vscode, this._cwd);
-    const serverProcess = spawn(node, this._args, {
-      cwd: this._cwd,
+    const node = await findNode(this._vscode, this._options.cwd);
+    const serverProcess = spawn(node, this._options.args, {
+      cwd: this._options.cwd,
       stdio: 'pipe',
       env: {
         ...process.env,
-        ...this._envProvider(),
+        ...this._options.envProvider(),
       },
     });
 
-    const client = this._clientFactory();
+    const client = this._options.clientFactory();
 
-    serverProcess.stderr?.on('data', () => {});
+    serverProcess.stderr?.on('data', data => {
+      if (this._options.dumpIO)
+        console.log('[server err]', data.toString());
+    });
     serverProcess.on('error', error => {
       client._onErrorEvent.fire(error);
     });
-
     return new Promise(fulfill => {
       serverProcess.stdout?.on('data', async data => {
+        if (this._options.dumpIO)
+          console.log('[server out]', data.toString());
         const match = data.toString().match(/Listening on (.*)/);
         if (!match)
           return;
diff --git a/src/extension.ts b/src/extension.ts
index ce72d0161..30f2c0140 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -30,6 +30,7 @@ import { NodeJSNotFoundError, ansiToHtml } from './utils';
 import * as vscodeTypes from './vscodeTypes';
 import { WorkspaceChange, WorkspaceObserver } from './workspaceObserver';
 import { TraceViewer } from './traceViewer';
+import { TestServerController } from './testServerController';
 
 const stackUtils = new StackUtils({
   cwd: '/ensure_absolute_paths'
@@ -87,6 +88,7 @@ export class Extension implements RunHooks {
   } | undefined;
   private _diagnostics: Record<'configErrors' | 'testErrors', vscodeTypes.DiagnosticCollection>;
   private _treeItemObserver: TreeItemObserver;
+  private _testServerController: TestServerController;
 
   constructor(vscode: vscodeTypes.VSCode) {
     this._vscode = vscode;
@@ -111,7 +113,8 @@ export class Extension implements RunHooks {
     this._settingsModel = new SettingsModel(vscode);
     this._reusedBrowser = new ReusedBrowser(this._vscode, this._settingsModel, this._envProvider.bind(this));
     this._traceViewer = new TraceViewer(this._vscode, this._settingsModel, this._envProvider.bind(this));
-    this._playwrightTest = new PlaywrightTest(this._vscode, this._settingsModel, this, this._isUnderTest, this._envProvider.bind(this));
+    this._testServerController = new TestServerController(this._vscode, this._envProvider.bind(this));
+    this._playwrightTest = new PlaywrightTest(this._vscode, this._settingsModel, this, this._isUnderTest, this._testServerController, this._envProvider.bind(this));
     this._testController = vscode.tests.createTestController('pw.extension.testController', 'Playwright');
     this._testController.resolveHandler = item => this._resolveChildren(item);
     this._testController.refreshHandler = () => this._rebuildModel(true).then(() => {});
@@ -214,6 +217,7 @@ export class Extension implements RunHooks {
       this._reusedBrowser,
       ...Object.values(this._diagnostics),
       this._treeItemObserver,
+      this._testServerController,
     ];
     await this._rebuildModel(false);
 
diff --git a/src/oopReporter.ts b/src/oopReporter.ts
index d4ee5485d..a19bc5d05 100644
--- a/src/oopReporter.ts
+++ b/src/oopReporter.ts
@@ -66,13 +66,15 @@ class OopReporter implements Reporter {
 
   constructor() {
     this._transport = WebSocketTransport.connect(process.env.PW_TEST_REPORTER_WS_ENDPOINT!);
-    this._transport.then(t => {
-      t.onmessage = message => {
-        if (message.method === 'stop')
-          process.emit('SIGINT' as any);
-      };
-      t.onclose = () => process.exit(0);
-    });
+    if (process.env.PW_TEST_REPORTER_SELF_DESTRUCT) {
+      this._transport.then(t => {
+        t.onmessage = message => {
+          if (message.method === 'stop')
+            process.emit('SIGINT' as any);
+        };
+        t.onclose = () => process.exit(0);
+      });
+    }
   }
 
   printsToStdio() {
@@ -177,7 +179,8 @@ class OopReporter implements Reporter {
   async onEnd(result: FullResult) {
     this._emit('onEnd', {});
     // Embedder is responsible for terminating the connection.
-    await new Promise(() => {});
+    if (process.env.PW_TEST_REPORTER_SELF_DESTRUCT)
+      await new Promise(() => {});
   }
 
   private _emit(method: string, params: Object) {
diff --git a/src/playwrightTest.ts b/src/playwrightTest.ts
index 6e97a80fd..c8c2b142a 100644
--- a/src/playwrightTest.ts
+++ b/src/playwrightTest.ts
@@ -23,6 +23,7 @@ import { ReporterServer } from './reporterServer';
 import { findNode, spawnAsync } from './utils';
 import * as vscodeTypes from './vscodeTypes';
 import { SettingsModel } from './settingsModel';
+import { TestServerController } from './testServerController';
 
 export type TestConfig = {
   workspaceFolder: string;
@@ -47,8 +48,12 @@ export interface TestListener {
 const pathSeparator = process.platform === 'win32' ? ';' : ':';
 
 export type PlaywrightTestOptions = {
+  headed?: boolean,
+  oneWorker?: boolean,
+  trace?: 'on' | 'off',
   projects?: string[];
   grep?: string;
+  reuseContext?: boolean,
   connectWsEndpoint?: string;
 };
 
@@ -64,12 +69,14 @@ export class PlaywrightTest {
   private _envProvider: () => NodeJS.ProcessEnv;
   private _vscode: vscodeTypes.VSCode;
   private _settingsModel: SettingsModel;
+  private _testServerController: TestServerController;
 
-  constructor(vscode: vscodeTypes.VSCode, settingsModel: SettingsModel, runHooks: RunHooks, isUnderTest: boolean, envProvider: () => NodeJS.ProcessEnv) {
+  constructor(vscode: vscodeTypes.VSCode, settingsModel: SettingsModel, runHooks: RunHooks, isUnderTest: boolean, testServerController: TestServerController, envProvider: () => NodeJS.ProcessEnv) {
     this._vscode = vscode;
     this._settingsModel = settingsModel;
     this._runHooks = runHooks;
     this._isUnderTest = isUnderTest;
+    this._testServerController = testServerController;
     this._envProvider = envProvider;
   }
 
@@ -117,15 +124,33 @@ export class PlaywrightTest {
     const locationArg = locations ? locations : [];
     if (token?.isCancellationRequested)
       return;
-    const testOptions = await this._runHooks.onWillRunTests(config, false);
+    const externalOptions = await this._runHooks.onWillRunTests(config, false);
+    const showBrowser = this._settingsModel.showBrowser.get() && !!externalOptions.connectWsEndpoint;
+
+    let trace: 'on' | 'off' | undefined;
+    if (this._settingsModel.showTrace.get())
+      trace = 'on';
+    // "Show browser" mode forces context reuse that survives over multiple test runs.
+    // Playwright Test sets up `tracesDir` inside the `test-results` folder, so it will be removed between runs.
+    // When context is reused, its ongoing tracing will fail with ENOENT because trace files
+    // were suddenly removed. So we disable tracing in this case.
+    if (this._settingsModel.showBrowser.get())
+      trace = 'off';
+
+    const options: PlaywrightTestOptions = {
+      grep: parametrizedTestTitle,
+      projects: projectNames.length ? projectNames.filter(Boolean) : undefined,
+      headed: showBrowser && !this._isUnderTest,
+      oneWorker: showBrowser,
+      trace,
+      reuseContext: showBrowser,
+      connectWsEndpoint: showBrowser ? externalOptions.connectWsEndpoint : undefined,
+    };
+
     try {
       if (token?.isCancellationRequested)
         return;
-      await this._test(config, locationArg, 'run', {
-        grep: parametrizedTestTitle,
-        projects: projectNames.filter(Boolean),
-        ...testOptions
-      }, listener, token);
+      await this._test(config, locationArg, 'run', options, listener, token);
     } finally {
       await this._runHooks.onDidRunTests(false);
     }
@@ -146,6 +171,13 @@ export class PlaywrightTest {
   }
 
   private async _test(config: TestConfig, locations: string[], mode: 'list' | 'run', options: PlaywrightTestOptions, listener: TestListener, token: vscodeTypes.CancellationToken): Promise<void> {
+    if (process.env.PWTEST_VSCODE_SERVER)
+      await this._testWithServer(config, locations, mode, options, listener, token);
+    else
+      await this._testWithCLI(config, locations, mode, options, listener, token);
+  }
+
+  private async _testWithCLI(config: TestConfig, locations: string[], mode: 'list' | 'run', options: PlaywrightTestOptions, listener: TestListener, token: vscodeTypes.CancellationToken): Promise<void> {
     // Playwright will restart itself as child process in the ESM mode and won't inherit the 3/4 pipes.
     // Always use ws transport to mitigate it.
     const reporterServer = new ReporterServer(this._vscode);
@@ -176,21 +208,13 @@ export class PlaywrightTest {
       '--repeat-each', '1',
       '--retries', '0',
     ];
-    const showBrowser = this._settingsModel.showBrowser.get() && !!options.connectWsEndpoint;
-    if (mode === 'run') {
-      if (showBrowser && !this._isUnderTest)
-        allArgs.push('--headed');
-      if (showBrowser)
-        allArgs.push('--workers', '1');
-      if (this._settingsModel.showTrace.get())
-        allArgs.push('--trace', 'on');
-      // "Show browser" mode forces context reuse that survives over multiple test runs.
-      // Playwright Test sets up `tracesDir` inside the `test-results` folder, so it will be removed between runs.
-      // When context is reused, its ongoing tracing will fail with ENOENT because trace files
-      // were suddenly removed. So we disable tracing in this case.
-      if (this._settingsModel.showBrowser.get())
-        allArgs.push('--trace', 'off');
-    }
+
+    if (options.headed)
+      allArgs.push('--headed');
+    if (options.oneWorker)
+      allArgs.push('--workers', '1');
+    if (options.trace)
+      allArgs.push('--trace', options.trace);
 
     const childProcess = spawn(node, allArgs, {
       cwd: configFolder,
@@ -201,9 +225,9 @@ export class PlaywrightTest {
         // Don't debug tests when running them.
         NODE_OPTIONS: undefined,
         ...this._envProvider(),
-        PW_TEST_REUSE_CONTEXT: showBrowser ? '1' : undefined,
-        PW_TEST_CONNECT_WS_ENDPOINT: showBrowser ? options.connectWsEndpoint : undefined,
-        ...(await reporterServer.env()),
+        PW_TEST_REUSE_CONTEXT: options.reuseContext ? '1' : undefined,
+        PW_TEST_CONNECT_WS_ENDPOINT: options.connectWsEndpoint,
+        ...(await reporterServer.env({ selfDestruct: true })),
         // Reset VSCode's options that affect nested Electron.
         ELECTRON_RUN_AS_NODE: undefined,
         FORCE_COLOR: '1',
@@ -218,6 +242,33 @@ export class PlaywrightTest {
     await reporterServer.wireTestListener(listener, token);
   }
 
+  private async _testWithServer(config: TestConfig, locations: string[], mode: 'list' | 'run', options: PlaywrightTestOptions, listener: TestListener, token: vscodeTypes.CancellationToken): Promise<void> {
+    const reporterServer = new ReporterServer(this._vscode);
+    const testServer = await this._testServerController.testServerFor(config);
+    if (!testServer)
+      return;
+    if (token?.isCancellationRequested)
+      return;
+    const env = await reporterServer.env({ selfDestruct: false });
+    const reporter = reporterServer.reporterFile();
+    if (mode === 'list')
+      testServer.list({ locations, reporter, env });
+    if (mode === 'run') {
+      testServer.test({ locations, reporter, env, options });
+      token.onCancellationRequested(() => {
+        testServer.stop();
+      });
+      testServer.on('stdio', params => {
+        if (params.type === 'stdout')
+          listener.onStdOut?.(unwrapString(params));
+        if (params.type === 'stderr')
+          listener.onStdErr?.(unwrapString(params));
+      });
+    }
+
+    await reporterServer.wireTestListener(listener, token);
+  }
+
   async debugTests(vscode: vscodeTypes.VSCode, config: TestConfig, projectNames: string[], testDirs: string[], settingsEnv: NodeJS.ProcessEnv, locations: string[] | null, listener: TestListener, parametrizedTestTitle: string | undefined, token: vscodeTypes.CancellationToken) {
     const configFolder = path.dirname(config.configFile);
     const configFile = path.basename(config.configFile);
@@ -255,7 +306,7 @@ export class PlaywrightTest {
           CI: this._isUnderTest ? undefined : process.env.CI,
           ...settingsEnv,
           PW_TEST_CONNECT_WS_ENDPOINT: testOptions.connectWsEndpoint,
-          ...(await reporterServer.env()),
+          ...(await reporterServer.env({ selfDestruct: true })),
           // Reset VSCode's options that affect nested Electron.
           ELECTRON_RUN_AS_NODE: undefined,
           FORCE_COLOR: '1',
@@ -289,3 +340,7 @@ export class PlaywrightTest {
 function escapeRegex(text: string) {
   return text.replace(/[.*+?^${}()|[\]\\]/g, '\\$&');
 }
+
+function unwrapString(params: { text?: string, buffer?: string }): string | Buffer {
+  return params.buffer ? Buffer.from(params.buffer, 'base64') : params.text || '';
+}
diff --git a/src/reporterServer.ts b/src/reporterServer.ts
index 5e046677f..9c3d86cc0 100644
--- a/src/reporterServer.ts
+++ b/src/reporterServer.ts
@@ -33,11 +33,16 @@ export class ReporterServer {
     this._clientSocketPromise = new Promise(f => this._clientSocketCallback = f);
   }
 
-  async env() {
+  reporterFile() {
+    return require.resolve('./oopReporter');
+  }
+
+  async env(options: { selfDestruct: boolean }) {
     const wsEndpoint = await this._listen();
     return {
-      PW_TEST_REPORTER: require.resolve('./oopReporter'),
+      PW_TEST_REPORTER: this.reporterFile(),
       PW_TEST_REPORTER_WS_ENDPOINT: wsEndpoint,
+      PW_TEST_REPORTER_SELF_DESTRUCT: options.selfDestruct ? '1' : '',
     };
   }
 
diff --git a/src/reusedBrowser.ts b/src/reusedBrowser.ts
index d4cfeeff3..59f373234 100644
--- a/src/reusedBrowser.ts
+++ b/src/reusedBrowser.ts
@@ -88,7 +88,12 @@ export class ReusedBrowser implements vscodeTypes.Disposable {
       PW_EXTENSION_MODE: '1',
     });
 
-    const backendServer = new BackendServer<Backend>(this._vscode, args, cwd, envProvider, () => new Backend(this._vscode));
+    const backendServer = new BackendServer<Backend>(this._vscode, {
+      args,
+      cwd,
+      envProvider,
+      clientFactory: () => new Backend(this._vscode)
+    });
     const backend = await backendServer.start();
     if (!backend)
       return;
diff --git a/src/testServerController.ts b/src/testServerController.ts
new file mode 100644
index 000000000..01e30a49d
--- /dev/null
+++ b/src/testServerController.ts
@@ -0,0 +1,72 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { BackendClient, BackendServer } from './backend';
+import { TestConfig } from './playwrightTest';
+import * as vscodeTypes from './vscodeTypes';
+
+export class TestServerController implements vscodeTypes.Disposable {
+  private _vscode: vscodeTypes.VSCode;
+  private _testServers = new Map<TestConfig, TestServer>();
+  private _envProvider: () => NodeJS.ProcessEnv;
+
+  constructor(vscode: vscodeTypes.VSCode, envProvider: () => NodeJS.ProcessEnv) {
+    this._vscode = vscode;
+    this._envProvider = envProvider;
+  }
+
+  async testServerFor(config: TestConfig): Promise<TestServer | null> {
+    const existing = this._testServers.get(config);
+    if (existing)
+      return existing;
+    const args = [config.cli, 'test-server'];
+    const testServerBackend = new BackendServer<TestServer>(this._vscode, {
+      args,
+      cwd: config.workspaceFolder,
+      envProvider: this._envProvider,
+      clientFactory: () => new TestServer(this._vscode),
+      dumpIO: false,
+    });
+    const testServer = await testServerBackend.start();
+    if (!testServer)
+      return null;
+    this._testServers.set(config, testServer);
+    return testServer;
+  }
+
+  dispose() {
+    for (const backend of this._testServers.values())
+      backend.close();
+    this._testServers.clear();
+  }
+}
+
+class TestServer extends BackendClient {
+  override async initialize(): Promise<void> {
+  }
+
+  async list(params: any) {
+    await this.send('list', params);
+  }
+
+  async test(params: any) {
+    await this.send('test', params);
+  }
+
+  async stop() {
+    await this.send('stop', {});
+  }
+}
diff --git a/tests/debug-tests.spec.ts b/tests/debug-tests.spec.ts
index 5406d9a46..971818c25 100644
--- a/tests/debug-tests.spec.ts
+++ b/tests/debug-tests.spec.ts
@@ -42,7 +42,7 @@ test('should debug all tests', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > debug -c playwright.config.js
   `);
@@ -69,7 +69,7 @@ test('should debug one test', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > debug -c playwright.config.js tests/test.spec.ts:3
diff --git a/tests/decorations.spec.ts b/tests/decorations.spec.ts
index 6fe08c574..115de1742 100644
--- a/tests/decorations.spec.ts
+++ b/tests/decorations.spec.ts
@@ -63,7 +63,7 @@ test('should highlight steps while running', async ({ activate }) => {
     [5:18 - 5:18]: decorator #2 {"after":{"contentText":" — Xms"}}
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js
diff --git a/tests/global-errors.spec.ts b/tests/global-errors.spec.ts
index bf6868405..5d8e95fc4 100644
--- a/tests/global-errors.spec.ts
+++ b/tests/global-errors.spec.ts
@@ -28,7 +28,7 @@ test('should report duplicate test title', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -69,7 +69,7 @@ test('should report error in global setup', async ({ activate }) => {
         globalSetup.ts:[3:21 - 3:21]
         Error: <span style='color:#666;'>expect(</span>`);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js
   `);
diff --git a/tests/list-files.spec.ts b/tests/list-files.spec.ts
index 36177ae28..c14021ca9 100644
--- a/tests/list-files.spec.ts
+++ b/tests/list-files.spec.ts
@@ -26,11 +26,11 @@ test('should list files', async ({ activate }) => {
     `,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -44,10 +44,10 @@ test('should list files top level if no testDir', async ({ activate }, testInfo)
     `,
   }, { rootDir: testInfo.outputPath('myWorkspace') });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - test.spec.ts
   `);
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -64,7 +64,7 @@ test('should list only test files', async ({ activate }) => {
     `,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -79,7 +79,7 @@ test('should list folders', async ({ activate }) => {
     'tests/a/b/c/d/test-c.spec.ts': ``,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - a
         - b
@@ -92,7 +92,7 @@ test('should list folders', async ({ activate }) => {
         - test-a.spec.ts
         - test-b.spec.ts
   `);
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -103,12 +103,12 @@ test('should pick new files', async ({ activate }) => {
     'tests/test-1.spec.ts': ``
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 
@@ -117,13 +117,13 @@ test('should pick new files', async ({ activate }) => {
     workspaceFolder.addFile('tests/test-2.spec.ts', '')
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright list-files -c playwright.config.js
   `);
@@ -135,7 +135,7 @@ test('should not pick non-test files', async ({ activate }) => {
     'tests/test-1.spec.ts': ``
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
   `);
@@ -146,7 +146,7 @@ test('should not pick non-test files', async ({ activate }) => {
     workspaceFolder.addFile('tests/test-2.spec.ts', ''),
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -158,7 +158,7 @@ test('should tolerate missing testDir', async ({ activate }) => {
     'playwright.config.js': `module.exports = { testDir: 'tests' }`,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
   `);
 
   await Promise.all([
@@ -166,7 +166,7 @@ test('should tolerate missing testDir', async ({ activate }) => {
     workspaceFolder.addFile('tests/test.spec.ts', '')
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -180,14 +180,14 @@ test('should remove deleted files', async ({ activate }) => {
     'tests/test-3.spec.ts': ``,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
       - test-3.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 
@@ -196,13 +196,13 @@ test('should remove deleted files', async ({ activate }) => {
     workspaceFolder.removeFile('tests/test-2.spec.ts')
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-3.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -215,7 +215,7 @@ test('should do nothing for not loaded changed file', async ({ activate }) => {
     'tests/test-3.spec.ts': ``,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -242,14 +242,14 @@ test('should support multiple configs', async ({ activate }) => {
       test(two', async () => {});
     `,
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
     - tests2
       - test.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
   `);
@@ -273,13 +273,13 @@ test('should support multiple projects', async ({ activate }) => {
       test(two', async () => {});
     `,
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
       - test2.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -306,13 +306,13 @@ test('should support multiple projects with filter', async ({ activate }) => {
       test(three', async () => {});
     `,
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
       - test2.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -325,11 +325,11 @@ test('should list files in relative folder', async ({ activate }) => {
       test('one', async () => {});
     `,
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     foo/bar> playwright list-files -c playwright.config.js
   `);
 });
@@ -358,7 +358,7 @@ test('should list files in multi-folder workspace', async ({ activate }, testInf
   const context = { subscriptions: [] };
   await extension.activate(context);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - folder1
       - test.spec.ts
     - folder2
@@ -376,11 +376,11 @@ test('should ignore errors when listing files', async ({ activate }) => {
     `,
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright list-files -c playwright.config.ts
   `);
diff --git a/tests/list-tests.spec.ts b/tests/list-tests.spec.ts
index 0f10b36cc..0530c4601 100644
--- a/tests/list-tests.spec.ts
+++ b/tests/list-tests.spec.ts
@@ -27,13 +27,13 @@ test('should list tests on expand', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
@@ -55,7 +55,7 @@ test('should list tests for visible editors', async ({ activate }) => {
   await vscode.openEditors('**/test*.spec.ts');
   await new Promise(f => testController.onDidChangeTestItem(f));
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
         - one [2:0]
@@ -63,7 +63,7 @@ test('should list tests for visible editors', async ({ activate }) => {
         - two [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test1.spec.ts tests/test2.spec.ts
   `);
@@ -92,7 +92,7 @@ test('should list suits', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -120,7 +120,7 @@ test('should discover new tests', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
@@ -134,14 +134,14 @@ test('should discover new tests', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
         - two [3:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
@@ -157,7 +157,7 @@ test('should discover new tests with active editor', async ({ activate }) => {
     `,
   });
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 
@@ -176,14 +176,14 @@ test('should discover new tests with active editor', async ({ activate }) => {
     vscode.openEditors('**/test2.spec.ts'),
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
       - test2.spec.ts
         - two [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test2.spec.ts
@@ -200,7 +200,7 @@ test('should discover tests on add + change', async ({ activate }) => {
     workspaceFolder.addFile('test.spec.ts', ``)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - test.spec.ts
   `);
 
@@ -214,12 +214,12 @@ test('should discover tests on add + change', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - test.spec.ts
       - one [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null test.spec.ts
@@ -238,7 +238,7 @@ test('should discover new test at existing location', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
@@ -251,13 +251,13 @@ test('should discover new test at existing location', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - two [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
@@ -276,12 +276,12 @@ test('should remove deleted tests', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -296,13 +296,13 @@ test('should remove deleted tests', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
@@ -321,7 +321,7 @@ test('should forget tests after error before first test', async ({ activate }) =
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -338,7 +338,7 @@ test('should forget tests after error before first test', async ({ activate }) =
     `)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -357,12 +357,12 @@ test('should regain tests after error is fixed', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -376,14 +376,14 @@ test('should regain tests after error is fixed', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
         - two [3:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
@@ -406,7 +406,7 @@ test('should support multiple configs', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec/);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
         - one [2:0]
@@ -415,7 +415,7 @@ test('should support multiple configs', async ({ activate }) => {
         - two [2:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
     tests1> playwright test -c playwright.config.js --list --reporter=null test.spec.ts
@@ -444,14 +444,14 @@ test('should support multiple projects', async ({ activate }) => {
 
   await testController.expandTestItems(/test1.spec/);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
         - one [2:0]
       - test2.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test1.spec.ts
   `);
@@ -468,7 +468,7 @@ test('should list parametrized tests', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [3:0]
@@ -491,7 +491,7 @@ test('should list tests in parametrized groups', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - level 1 [3:0]
@@ -514,7 +514,7 @@ test('should not run config reporters', async ({ activate }, testInfo) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -544,7 +544,7 @@ test('should list tests in multi-folder workspace', async ({ activate }, testInf
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - folder1
       - test.spec.ts
         - one [2:0]
diff --git a/tests/mock/vscode.ts b/tests/mock/vscode.ts
index 27a9c0228..2e7a51fb7 100644
--- a/tests/mock/vscode.ts
+++ b/tests/mock/vscode.ts
@@ -297,6 +297,7 @@ export class TestMessage {
       result.push(`${indent}${path.basename(this.location.uri.fsPath)}:${this.location.range.toString()}`);
     const message = this.message.render();
     for (let line of message.split('\n')) {
+      line = line.replace(/at .*\/test-results.*[/\\]tests(.*)\)/, 'at tests$1');
       if (this.location && line.includes('    at'))
         line = line.replace(/\\/g, '/');
       if (this.location && line.includes('&nbsp;&nbsp;&nbsp;&nbsp;at'))
diff --git a/tests/profile-discovery.spec.ts b/tests/profile-discovery.spec.ts
index cedcc7d34..18b54d0ad 100644
--- a/tests/profile-discovery.spec.ts
+++ b/tests/profile-discovery.spec.ts
@@ -39,7 +39,7 @@ test('should create run & debug profiles', async ({ activate }, testInfo) => {
   expect(runProfiles[1].kind).toBe(vscode.TestRunProfileKind.Debug);
   expect(runProfiles[1].isDefault).toBeFalsy();
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -71,7 +71,7 @@ test('should create run & debug profile per project', async ({ activate }, testI
   expect(runProfiles[3].kind).toBe(vscode.TestRunProfileKind.Debug);
   expect(runProfiles[1].isDefault).toBeFalsy();
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
diff --git a/tests/run-annotations.spec.ts b/tests/run-annotations.spec.ts
index 2fd57b10b..c67c66b72 100644
--- a/tests/run-annotations.spec.ts
+++ b/tests/run-annotations.spec.ts
@@ -55,7 +55,7 @@ test('should mark test as skipped', async ({ activate }) => {
       skipped
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js
   `);
diff --git a/tests/run-tests.spec.ts b/tests/run-tests.spec.ts
index 5ce472bdb..8a33f0ddc 100644
--- a/tests/run-tests.spec.ts
+++ b/tests/run-tests.spec.ts
@@ -43,7 +43,7 @@ test('should run all tests', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js
   `);
@@ -70,7 +70,7 @@ test('should run one test', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js tests/test.spec.ts:3
@@ -133,7 +133,7 @@ test('should run file', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js tests/test.spec.ts
   `);
@@ -167,7 +167,7 @@ test('should run folder', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js tests/folder
   `);
@@ -298,7 +298,7 @@ test('should only create test run if file belongs to context', async ({ activate
     expect(testRuns).toHaveLength(1);
   }
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
     tests1> playwright test -c playwright.config.js test1.spec.ts
@@ -311,7 +311,7 @@ test('should only create test run if file belongs to context', async ({ activate
     expect(testRuns).toHaveLength(1);
   }
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
     tests1> playwright test -c playwright.config.js test1.spec.ts
@@ -340,7 +340,7 @@ test('should only create test run if folder belongs to context', async ({ activa
   await Promise.all(profiles.map(p => p.run(items)));
   expect(testRuns).toHaveLength(1);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
     tests1> playwright test -c playwright.config.js foo1
@@ -369,7 +369,7 @@ test('should only create test run if test belongs to context', async ({ activate
   await Promise.all(profiles.map(p => p.run(items)));
   expect(testRuns).toHaveLength(1);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
     tests2> playwright test -c playwright.config.js --list --reporter=null foo2/bar2/test2.spec.ts
@@ -395,7 +395,7 @@ test('should run all projects at once', async ({ activate }) => {
   const profiles = testController.runProfiles.filter(p => p.kind === vscode.TestRunProfileKind.Run);
   await Promise.all(profiles.map(p => p.run()));
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --project=projectOne --project=projectTwo
   `);
@@ -428,7 +428,7 @@ test('should group projects by config', async ({ activate }) => {
   const profiles = testController.runProfiles.filter(p => p.kind === vscode.TestRunProfileKind.Run);
   await Promise.all(profiles.map(p => p.run()));
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
     tests1> playwright test -c playwright.config.js --project=projectOne --project=projectTwo
@@ -516,7 +516,7 @@ test('should not remove other tests when running focused test', async ({ activat
   const testItems = testController.findTestItems(/two/);
   await testController.run(testItems);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -558,7 +558,7 @@ test('should run all parametrized tests', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js tests/test.spec.ts:4
@@ -588,7 +588,7 @@ test('should run one parametrized test', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --grep=test two tests/test.spec.ts:4
@@ -626,7 +626,7 @@ test('should run one parametrized groups', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --grep=group three tests/test.spec.ts:4
@@ -660,7 +660,7 @@ test('should run tests in parametrized groups', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --grep=level 1 tests/test.spec.ts:4
@@ -677,7 +677,7 @@ test('should run tests in parametrized groups', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --grep=level 1 tests/test.spec.ts:4
@@ -696,12 +696,12 @@ test('should list tests in relative folder', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec/);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     foo/bar> playwright list-files -c playwright.config.js
     foo/bar> playwright test -c playwright.config.js --list --reporter=null ../../tests/test.spec.ts
   `);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -736,7 +736,7 @@ test('should specify project', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --project=project 1 tests1/test.spec.ts
   `);
@@ -757,7 +757,7 @@ test('should run tests concurrently', async ({ activate }) => {
   await Promise.all([profile.run(), profile.run(), profile.run()]);
   expect(runs).toHaveLength(1);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js
   `);
@@ -788,7 +788,7 @@ test('should report project-specific failures', async ({ activate }) => {
     ...profile.map(p => p.run()),
   ]);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --project=projectA --project=projectB --project=projectC
   `);
@@ -846,7 +846,7 @@ test('should discover tests after running one test', async ({ activate }) => {
 
   await testController.expandTestItems(/test2.spec.ts/);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
         - one [2:0]
@@ -941,7 +941,7 @@ test('should show warning when tests do not belong to projects', async ({ activa
     await profile.run(items);
   }
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
   `);
diff --git a/tests/source-map.spec.ts b/tests/source-map.spec.ts
index afda7ae7e..5db7ac7ad 100644
--- a/tests/source-map.spec.ts
+++ b/tests/source-map.spec.ts
@@ -23,11 +23,11 @@ test('should list files', async ({ activate }) => {
     'build/test.spec.js': testSpecJs('test.spec'),
     'build/test.spec.js.map': testSpecJsMap('test.spec'),
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -41,14 +41,14 @@ test('should list tests on expand', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
         - two [3:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
@@ -65,14 +65,14 @@ test('should list tests for visible editors', async ({ activate }) => {
   await vscode.openEditors('**/test.spec.ts');
   await new Promise(f => testController.onDidChangeTestItem(f));
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
         - two [3:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
@@ -86,12 +86,12 @@ test('should pick new files', async ({ activate }) => {
     'build/test-1.spec.js.map': testSpecJsMap('test-1.spec'),
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 
@@ -102,13 +102,13 @@ test('should pick new files', async ({ activate }) => {
     workspaceFolder.addFile('build/test-2.spec.js.map', testSpecJsMap('test-2.spec')),
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright list-files -c playwright.config.js
   `);
@@ -128,14 +128,14 @@ test('should remove deleted files', async ({ activate }) => {
     'build/test-3.spec.js.map': testSpecJsMap('test-3.spec'),
   });
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
       - test-3.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 
@@ -146,13 +146,13 @@ test('should remove deleted files', async ({ activate }) => {
     workspaceFolder.removeFile('build/test-2.spec.js.map'),
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-3.spec.ts
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -167,7 +167,7 @@ test('should discover new tests', async ({ activate }) => {
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
@@ -179,7 +179,7 @@ test('should discover new tests', async ({ activate }) => {
     workspaceFolder.changeFile('build/test.spec.js.map', testSpecJsMapAfter),
   ]);
 
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - new [2:0]
@@ -187,7 +187,7 @@ test('should discover new tests', async ({ activate }) => {
         - two [4:0]
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
@@ -214,7 +214,7 @@ test('should run all tests', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js
   `);
@@ -240,7 +240,7 @@ test('should run one test', async ({ activate }) => {
       passed
   `);
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
     > playwright test -c playwright.config.js tests/test.spec.ts:3
diff --git a/tests/track-configs.spec.ts b/tests/track-configs.spec.ts
index 8cc6101f1..8d2c2f58f 100644
--- a/tests/track-configs.spec.ts
+++ b/tests/track-configs.spec.ts
@@ -18,7 +18,7 @@ import { expect, test } from './utils';
 
 test('should load first config', async ({ activate }) => {
   const { vscode, testController, workspaceFolder } = await activate({});
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
   `);
 
   workspaceFolder.addFile('playwright.config.js', `module.exports = { testDir: 'tests' }`);
@@ -33,7 +33,7 @@ test('should load first config', async ({ activate }) => {
   `;
   while (testController.renderTestTree() !== golden) await new Promise(f => setTimeout(f, 200));
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
   `);
 });
@@ -46,7 +46,7 @@ test('should load second config', async ({ activate }) => {
       test('one', async () => {});
     `,
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
   `);
@@ -65,7 +65,7 @@ test('should load second config', async ({ activate }) => {
   `;
   while (testController.renderTestTree() !== golden) await new Promise(f => setTimeout(f, 200));
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright1.config.js
     > playwright list-files -c playwright1.config.js
     > playwright list-files -c playwright2.config.js
@@ -85,7 +85,7 @@ test('should remove model for config', async ({ activate }) => {
       test('one', async () => {});
     `,
   });
-  expect(testController.renderTestTree()).toBe(`
+  expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
     - tests2
@@ -100,7 +100,7 @@ test('should remove model for config', async ({ activate }) => {
   `;
   while (testController.renderTestTree() !== golden) await new Promise(f => setTimeout(f, 200));
 
-  expect(vscode.renderExecLog('  ')).toBe(`
+  expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright1.config.js
     > playwright list-files -c playwright2.config.js
     > playwright list-files -c playwright2.config.js
diff --git a/tests/utils.ts b/tests/utils.ts
index c8aee89fc..079da1e1d 100644
--- a/tests/utils.ts
+++ b/tests/utils.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { expect, test as baseTest, Browser, chromium, Page } from '@playwright/test';
+import { expect as baseExpect, test as baseTest, Browser, chromium, Page } from '@playwright/test';
 import { Extension } from '../out/extension';
 import { TestController, VSCode, WorkspaceFolder } from './mock/vscode';
 import path from 'path';
@@ -33,7 +33,37 @@ export type WorkerOptions = {
   mode: 'default' | 'reuse';
 };
 
-export { expect } from '@playwright/test';
+// Make sure connect tests work with the locally-rolled version.
+process.env.PW_VERSION_OVERRIDE = require('@playwright/test/package.json').version;
+
+export const expect = baseExpect.extend({
+  toHaveTestTree(testController: TestController, expectedTree: string) {
+    try {
+      expect(testController.renderTestTree()).toBe(expectedTree);
+      return { pass: true, message: () => '' };
+    } catch (e) {
+      return {
+        pass: false,
+        message: () => e.toString()
+      };
+    }
+  },
+
+  toHaveExecLog(vscode: VSCode, expectedLog: string) {
+    if (process.env.PWTEST_VSCODE_SERVER)
+      return { pass: true, message: () => '' };
+    try {
+      expect(vscode.renderExecLog('  ')).toBe(expectedLog);
+      return { pass: true, message: () => '' };
+    } catch (e) {
+      return {
+        pass: false,
+        message: () => e.toString()
+      };
+    }
+  }
+});
+
 export const test = baseTest.extend<TestFixtures, WorkerOptions>({
   mode: ['default', { option: true, scope: 'worker' }],
 
diff --git a/utils/roll-locally.js b/utils/roll-locally.js
new file mode 100644
index 000000000..746d891ba
--- /dev/null
+++ b/utils/roll-locally.js
@@ -0,0 +1,38 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+const { execSync } = require('child_process');
+const fs = require('fs');
+const path = require('path');
+
+const packageNames = ['playwright-core', 'playwright', 'playwright-test'];
+
+(async () => {
+  const playwrightWorkspace = path.resolve(__dirname, '../../playwright');
+  for (const packageName of packageNames) {
+    console.log('Packaging ' + packageName);
+    console.log(execSync(`node ./utils/pack_package ${packageName} ` + path.join(__dirname, `../out/${packageName}.tgz`), { cwd: playwrightWorkspace }).toString());
+  }
+  const nodeModules = path.join(__dirname, '../test-results', 'node_modules');
+  await fs.promises.mkdir(nodeModules, { recursive: true });
+  for (const packageName of packageNames) {
+    const packagePath = path.join(__dirname, '../out', packageName + '.tgz');
+    if (fs.existsSync(packagePath)) {
+      console.log('Extracting ' + packageName);
+      console.log(execSync(`npm install ${packagePath}`, { cwd: nodeModules }).toString());
+    }
+  }
+})();