diff --git a/packages/playwright-core/src/server/dom.ts b/packages/playwright-core/src/server/dom.ts
index be472cb86a..c8cdaa7867 100644
--- a/packages/playwright-core/src/server/dom.ts
+++ b/packages/playwright-core/src/server/dom.ts
@@ -877,7 +877,7 @@ export class ElementHandle<T extends Node = Node> extends js.JSHandle<T> {
         return { framePoint: undefined };
       }
       // Translate from viewport coordinates to frame coordinates.
-      const pointInFrame = { x: point.x - box.x - style.borderLeft, y: point.y - box.y - style.borderTop };
+      const pointInFrame = { x: point.x - box.x - style.left, y: point.y - box.y - style.top };
       data.push({ frame, frameElement, pointInFrame });
       frame = frame.parentFrame()!;
     }
diff --git a/packages/playwright-core/src/server/injected/injectedScript.ts b/packages/playwright-core/src/server/injected/injectedScript.ts
index 4f2ec64745..42b4021e80 100644
--- a/packages/playwright-core/src/server/injected/injectedScript.ts
+++ b/packages/playwright-core/src/server/injected/injectedScript.ts
@@ -486,7 +486,7 @@ export class InjectedScript {
     return { left: parseInt(style.borderLeftWidth || '', 10), top: parseInt(style.borderTopWidth || '', 10) };
   }
 
-  describeIFrameStyle(iframe: Element): 'error:notconnected' | 'transformed' | { borderLeft: number, borderTop: number } {
+  describeIFrameStyle(iframe: Element): 'error:notconnected' | 'transformed' | { left: number, top: number } {
     if (!iframe.ownerDocument || !iframe.ownerDocument.defaultView)
       return 'error:notconnected';
     const defaultView = iframe.ownerDocument.defaultView;
@@ -495,7 +495,10 @@ export class InjectedScript {
         return 'transformed';
     }
     const iframeStyle = defaultView.getComputedStyle(iframe);
-    return { borderLeft: parseInt(iframeStyle.borderLeftWidth || '', 10), borderTop: parseInt(iframeStyle.borderTopWidth || '', 10) };
+    return {
+      left: parseInt(iframeStyle.borderLeftWidth || '', 10) + parseInt(iframeStyle.paddingLeft || '', 10),
+      top: parseInt(iframeStyle.borderTopWidth || '', 10) + parseInt(iframeStyle.paddingTop || '', 10),
+    };
   }
 
   retarget(node: Node, behavior: 'none' | 'follow-label' | 'no-follow-label' | 'button-link'): Element | null {
diff --git a/tests/library/hit-target.spec.ts b/tests/library/hit-target.spec.ts
index 2564efc6f5..9e5362ab18 100644
--- a/tests/library/hit-target.spec.ts
+++ b/tests/library/hit-target.spec.ts
@@ -394,3 +394,51 @@ it('should detect overlayed element in a transformed iframe', async ({ page }) =
   const error = await locator.click({ timeout: 2000 }).catch(e => e);
   expect(error.message).toContain('<section>Overlay</section> intercepts pointer events');
 });
+
+it('should click in iframe with padding', async ({ page }) => {
+  await page.setContent(`
+    <style>
+      body, html, iframe { margin: 0; padding: 0; border: none; box-sizing: border-box; }
+      iframe { background: gray; width: 200px; height: 200px; padding-top: 100px; }
+    </style>
+    <iframe srcdoc="
+      <style>
+        body, html { margin: 0; padding: 0; }
+        div { height: 100px; }
+      </style>
+      <div>Non-target</div>
+      <div id=target>Target</div>
+      <div>Non-target</div>
+      <script>
+        document.querySelector('#target').addEventListener('click', () => window.top._clicked = true);
+      </script>
+    "></iframe>
+  `);
+  const locator = page.frameLocator('iframe').locator('#target');
+  await locator.click();
+  expect(await page.evaluate('window._clicked')).toBe(true);
+});
+
+it('should click in iframe with padding 2', async ({ page }) => {
+  await page.setContent(`
+    <style>
+      body, html, iframe { margin: 0; padding: 0; border: none; box-sizing: content-box; }
+      iframe { background: gray; width: 200px; height: 200px; padding-top: 100px; }
+    </style>
+    <iframe srcdoc="
+      <style>
+        body, html { margin: 0; padding: 0; }
+        div { height: 100px; }
+      </style>
+      <div>Non-target</div>
+      <div id=target>Target</div>
+      <div>Non-target</div>
+      <script>
+        document.querySelector('#target').addEventListener('click', () => window.top._clicked = true);
+      </script>
+    "></iframe>
+  `);
+  const locator = page.frameLocator('iframe').locator('#target');
+  await locator.click();
+  expect(await page.evaluate('window._clicked')).toBe(true);
+});