diff --git a/packages/playwright-core/src/server/injected/recorder.ts b/packages/playwright-core/src/server/injected/recorder.ts
index 0db439e73a..cbaa83e60b 100644
--- a/packages/playwright-core/src/server/injected/recorder.ts
+++ b/packages/playwright-core/src/server/injected/recorder.ts
@@ -315,6 +315,9 @@ export class Recorder {
   }
 
   private _shouldGenerateKeyPressFor(event: KeyboardEvent): boolean {
+    // Enter aka. new line is handled in input event.
+    if (event.key === 'Enter' && (this._deepEventTarget(event).nodeName === 'TEXTAREA' || this._deepEventTarget(event).isContentEditable))
+      return false;
     // Backspace, Delete, AltGraph are changing input, will handle it there.
     if (['Backspace', 'Delete', 'AltGraph'].includes(event.key))
       return false;
diff --git a/tests/library/inspector/cli-codegen-1.spec.ts b/tests/library/inspector/cli-codegen-1.spec.ts
index 4a8ff8c331..091bb23aa9 100644
--- a/tests/library/inspector/cli-codegen-1.spec.ts
+++ b/tests/library/inspector/cli-codegen-1.spec.ts
@@ -305,6 +305,21 @@ test.describe('cli codegen', () => {
     expect(message.text()).toBe('John');
   });
 
+  test('should fill textarea with new lines at the end', async ({ page, openRecorder }) => {
+    test.info().annotations.push({ type: 'issue', description: 'https://github.com/microsoft/playwright/issues/23774' });
+    const recorder = await openRecorder();
+    await recorder.setContentAndWait(`<textarea id="textarea"></textarea>`);
+    const textarea = page.locator('textarea');
+    await textarea.evaluate<void, HTMLTextAreaElement>(e => e.addEventListener('input', () => (window as any).lastInputValue = e.value));
+    const waitForOutputPromise = recorder.waitForOutput('JavaScript', 'Hello\\n');
+    await textarea.type('Hello\n');
+    // Issue was that the input event was not fired for the last newline, so we check for that.
+    await page.waitForFunction(() => (window as any).lastInputValue === 'Hello\n');
+    const sources = await waitForOutputPromise;
+    expect(sources.get('JavaScript').text).toContain(`await page.locator('#textarea').fill('Hello\\n');`);
+    expect(sources.get('JavaScript').text).not.toContain(`Enter`);
+  });
+
   test('should fill [contentEditable]', async ({ page, openRecorder }) => {
     const recorder = await openRecorder();