diff --git a/package-lock.json b/package-lock.json
index 9510374360..dda5691907 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -9888,7 +9888,7 @@
       "requires": {
         "codemirror": "^5.65.9",
         "xterm": "^5.1.0",
-        "xterm-addon-fit": "*"
+        "xterm-addon-fit": "^0.7.0"
       }
     },
     "which": {
diff --git a/packages/playwright-test/src/isomorphic/teleReceiver.ts b/packages/playwright-test/src/isomorphic/teleReceiver.ts
index fab0e58182..48e9716818 100644
--- a/packages/playwright-test/src/isomorphic/teleReceiver.ts
+++ b/packages/playwright-test/src/isomorphic/teleReceiver.ts
@@ -166,9 +166,7 @@ export class TeleReporterReceiver {
 
   private _onTestBegin(testId: string, payload: JsonTestResultStart) {
     const test = this._tests.get(testId)!;
-    test.results = [];
-    test.resultsMap.clear();
-    const testResult = test._appendTestResult(payload.id);
+    const testResult = test._createTestResult(payload.id);
     testResult.retry = payload.retry;
     testResult.workerIndex = payload.workerIndex;
     testResult.parallelIndex = payload.parallelIndex;
@@ -398,7 +396,9 @@ export class TeleTestCase implements reporterTypes.TestCase {
     return status === 'expected' || status === 'flaky' || status === 'skipped';
   }
 
-  _appendTestResult(id: string): reporterTypes.TestResult {
+  _createTestResult(id: string): reporterTypes.TestResult {
+    this.results = [];
+    this.resultsMap.clear();
     const result: TeleTestResult = {
       retry: this.results.length,
       parallelIndex: -1,
diff --git a/packages/trace-viewer/src/ui/watchMode.css b/packages/trace-viewer/src/ui/watchMode.css
index 7f0a16098c..66eb8ce0e4 100644
--- a/packages/trace-viewer/src/ui/watchMode.css
+++ b/packages/trace-viewer/src/ui/watchMode.css
@@ -68,6 +68,43 @@
   margin: 0 5px;
 }
 
+.list-view {
+  margin-top: 5px;
+}
+
 .list-view-entry:not(.selected):not(.highlighted) .toolbar-button {
   display: none;
 }
+
+.filters {
+  flex: none;
+  margin-left: 5px;
+  line-height: 24px;
+}
+
+.filters > span {
+  color: var(--vscode-panelTitle-inactiveForeground);
+  padding-left: 3px;
+}
+
+.filters > div {
+  display: inline-block;
+  margin: 0 5px;
+  user-select: none;
+  cursor: pointer;
+}
+
+.filters > div:hover,
+.filters > div.filters-toggled {
+  color: var(--vscode-notificationLink-foreground);
+}
+
+.watch-mode-sidebar input[type=search] {
+  padding: 0 5px;
+  line-height: 24px;
+  outline: none;
+  margin: 0 4px;
+  border: none;
+  color: var(--vscode-input-foreground);
+  background-color: var(--vscode-input-background);
+}
diff --git a/packages/trace-viewer/src/ui/watchMode.tsx b/packages/trace-viewer/src/ui/watchMode.tsx
index d006c34c4f..2def9415fd 100644
--- a/packages/trace-viewer/src/ui/watchMode.tsx
+++ b/packages/trace-viewer/src/ui/watchMode.tsx
@@ -21,6 +21,7 @@ import React from 'react';
 import { TreeView } from '@web/components/treeView';
 import type { TreeState } from '@web/components/treeView';
 import { TeleReporterReceiver } from '../../../playwright-test/src/isomorphic/teleReceiver';
+import type { TeleTestCase } from '../../../playwright-test/src/isomorphic/teleReceiver';
 import type { FullConfig, Suite, TestCase, TestResult, TestStep, Location } from '../../../playwright-test/types/testReporter';
 import { SplitView } from '@web/components/splitView';
 import { MultiTraceModel } from './modelUtil';
@@ -32,6 +33,7 @@ import type { ContextEntry } from '../entries';
 import type * as trace from '@trace/trace';
 import type { XtermDataSource } from '@web/components/xtermWrapper';
 import { XtermWrapper } from '@web/components/xtermWrapper';
+import { Expandable } from '@web/components/expandable';
 
 let updateRootSuite: (rootSuite: Suite, progress: Progress) => void = () => {};
 let updateStepsProgress: () => void = () => {};
@@ -59,6 +61,7 @@ export const WatchModeView: React.FC<{}> = ({
   const [isWatchingFiles, setIsWatchingFiles] = React.useState<boolean>(true);
   const [visibleTestIds, setVisibleTestIds] = React.useState<string[]>([]);
   const [filterText, setFilterText] = React.useState<string>('');
+  const [filterExpanded, setFilterExpanded] = React.useState<boolean>(false);
   const inputRef = React.useRef<HTMLInputElement>(null);
 
   React.useEffect(() => {
@@ -89,7 +92,7 @@ export const WatchModeView: React.FC<{}> = ({
       const testIdSet = new Set(testIds);
       for (const test of rootSuite.value?.allTests() || []) {
         if (testIdSet.has(test.id))
-          test.results = [];
+          (test as TeleTestCase)._createTestResult('pending');
       }
       setRootSuite({ ...rootSuite });
     }
@@ -103,6 +106,24 @@ export const WatchModeView: React.FC<{}> = ({
     });
   };
 
+  const updateFilter = (name: string, value: string) => {
+    const result: string[] = [];
+    const prefix = name + ':';
+    for (const t of filterText.split(' ')) {
+      if (t.startsWith(prefix)) {
+        if (value) {
+          result.push(prefix + value);
+          value = '';
+        }
+      } else {
+        result.push(t);
+      }
+    }
+    if (value)
+      result.unshift(prefix + value);
+    setFilterText(result.join(' '));
+  };
+
   const result = selectedTest?.results[0];
   return <div className='vbox'>
     <SplitView sidebarSize={250} orientation='horizontal' sidebarIsFirst={true}>
@@ -117,16 +138,29 @@ export const WatchModeView: React.FC<{}> = ({
           <div className='spacer'></div>
           <ToolbarButton icon='gear' title='Toggle color mode' toggled={settingsVisible} onClick={() => { setSettingsVisible(!settingsVisible); }}></ToolbarButton>
         </Toolbar>
-        <Toolbar>
-          <input ref={inputRef} type='search' placeholder='Filter (e.g. text, @tag)' spellCheck={false} value={filterText}
+        {!settingsVisible && <Expandable
+          title={<input ref={inputRef} type='search' placeholder='Filter (e.g. text, @tag)' spellCheck={false} value={filterText}
             onChange={e => {
               setFilterText(e.target.value);
             }}
             onKeyDown={e => {
               if (e.key === 'Enter')
                 runTests(visibleTestIds);
-            }}></input>
-        </Toolbar>
+            }}></input>}
+          style={{ flex: 'none', marginTop: 8 }}
+          expanded={filterExpanded}
+          setExpanded={setFilterExpanded}>
+          <div className='filters'>
+            <span>Status:</span>
+            <div onClick={() => updateFilter('s', '')}>all</div>
+            {['failed', 'passed', 'skipped'].map(s => <div className={filterText.includes('s:' + s) ? 'filters-toggled' : ''} onClick={() => updateFilter('s', s)}>{s}</div>)}
+          </div>
+          {[...projects.values()].filter(v => v).length > 1 && <div className='filters'>
+            <span>Project:</span>
+            <div onClick={() => updateFilter('p', '')}>all</div>
+            {[...projects].filter(([k, v]) => v).map(([k, v]) => k).map(p => <div  className={filterText.includes('p:' + p) ? 'filters-toggled' : ''} onClick={() => updateFilter('p', p)}>{p}</div>)}
+          </div>}
+        </Expandable>}
         <TestList
           projects={projects}
           filterText={filterText}
@@ -459,11 +493,13 @@ type GroupItem = TreeItemBase & {
 type TestCaseItem = TreeItemBase & {
   kind: 'case',
   tests: TestCase[];
+  children: TestItem[];
 };
 
 type TestItem = TreeItemBase & {
   kind: 'test',
   test: TestCase;
+  project: string;
 };
 
 type TreeItem = GroupItem | TestCaseItem | TestItem;
@@ -531,6 +567,7 @@ function createTree(rootSuite: Suite | undefined, projects: Map<string, boolean>
         test,
         children: [],
         status,
+        project: projectName
       });
     }
   };
@@ -573,13 +610,27 @@ function createTree(rootSuite: Suite | undefined, projects: Map<string, boolean>
 function filterTree(rootItem: GroupItem, filterText: string) {
   const trimmedFilterText = filterText.trim();
   const filterTokens = trimmedFilterText.toLowerCase().split(' ');
+  const textTokens = filterTokens.filter(token => !token.match(/^[sp]:/));
+  const statuses = new Set(filterTokens.filter(t => t.startsWith('s:')).map(t => t.substring(2)));
+  if (statuses.size)
+    statuses.add('running');
+  const projects = new Set(filterTokens.filter(t => t.startsWith('p:')).map(t => t.substring(2)));
+
+  const filter = (testCase: TestCaseItem) => {
+    const title = testCase.tests[0].titlePath().join(' ').toLowerCase();
+    if (!textTokens.every(token => title.includes(token)))
+      return false;
+    testCase.children = (testCase.children as TestItem[]).filter(test => !statuses.size || statuses.has(test.status));
+    testCase.children = (testCase.children as TestItem[]).filter(test => !projects.size || projects.has(test.project));
+    testCase.tests = (testCase.children as TestItem[]).map(c => c.test);
+    return !!testCase.children.length;
+  };
 
   const visit = (treeItem: GroupItem) => {
     const newChildren: (GroupItem | TestCaseItem)[] = [];
     for (const child of treeItem.children) {
       if (child.kind === 'case') {
-        const title = child.tests[0].titlePath().join(' ').toLowerCase();
-        if (filterTokens.every(token => title.includes(token)))
+        if (filter(child))
           newChildren.push(child);
       } else {
         visit(child);
diff --git a/packages/web/src/components/expandable.tsx b/packages/web/src/components/expandable.tsx
index 7169510bad..4751381eb6 100644
--- a/packages/web/src/components/expandable.tsx
+++ b/packages/web/src/components/expandable.tsx
@@ -26,10 +26,10 @@ export const Expandable: React.FunctionComponent<React.PropsWithChildren<{
     <div style={{ display: 'flex', flexDirection: 'row', alignItems: 'center', whiteSpace: 'nowrap' }}>
       <div
         className={'codicon codicon-' + (expanded ? 'chevron-down' : 'chevron-right')}
-        style={{ cursor: 'pointer', color: 'var(--vscode-foreground)', marginRight: '4px' }}
+        style={{ cursor: 'pointer', color: 'var(--vscode-foreground)', marginLeft: '5px' }}
         onClick={() => setExpanded(!expanded)} />
       {title}
     </div>
-    { expanded && <div style={{ display: 'flex', flex: 'auto', margin: '5px 0 5px 20px' }}>{children}</div> }
+    { expanded && <div style={{ margin: '5px 0 5px 20px' }}>{children}</div> }
   </div>;
 };
diff --git a/packages/web/src/components/toolbarButton.css b/packages/web/src/components/toolbarButton.css
index 70b7e3196c..9686b2f22f 100644
--- a/packages/web/src/components/toolbarButton.css
+++ b/packages/web/src/components/toolbarButton.css
@@ -41,5 +41,5 @@
 }
 
 .toolbar-button.toggled {
-  color: var(--vscode-inputOption-activeBorder);
+  color: var(--vscode-notificationLink-foreground);
 }