diff --git a/packages/playwright-test/src/util.ts b/packages/playwright-test/src/util.ts
index 5f7a33cf00..d868c4d08d 100644
--- a/packages/playwright-test/src/util.ts
+++ b/packages/playwright-test/src/util.ts
@@ -173,11 +173,17 @@ export function getContainedPath(parentPath: string, subPath: string = ''): stri
 
 export const debugTest = debug('pw:test');
 
-export function prependToTestError(testError: TestError | undefined, message: string | undefined) {
+export function prependToTestError(testError: TestError | undefined, message: string | undefined, location?: Location) {
   if (!message)
     return testError;
-  if (!testError)
-    return { value: message };
+  if (!testError) {
+    if (!location)
+      return { value: message };
+    let stack = `    at ${location.file}:${location.line}:${location.column}`;
+    if (!message.endsWith('\n'))
+      stack = '\n' + stack;
+    return { message: message, stack: message + stack };
+  }
   if (testError.message) {
     const stack = testError.stack ? message + testError.stack : testError.stack;
     message = message + testError.message;
diff --git a/packages/playwright-test/src/workerRunner.ts b/packages/playwright-test/src/workerRunner.ts
index dbf50be082..71b83e5fa4 100644
--- a/packages/playwright-test/src/workerRunner.ts
+++ b/packages/playwright-test/src/workerRunner.ts
@@ -21,7 +21,7 @@ import * as mime from 'mime';
 import util from 'util';
 import colors from 'colors/safe';
 import { EventEmitter } from 'events';
-import { monotonicTime, serializeError, sanitizeForFilePath, getContainedPath, addSuffixToFilePath, prependToTestError, trimLongString } from './util';
+import { monotonicTime, serializeError, sanitizeForFilePath, getContainedPath, addSuffixToFilePath, prependToTestError, trimLongString, formatLocation } from './util';
 import { TestBeginPayload, TestEndPayload, RunPayload, TestEntry, DonePayload, WorkerInitParams, StepBeginPayload, StepEndPayload } from './ipc';
 import { setCurrentTestInfo } from './globals';
 import { Loader } from './loader';
@@ -192,7 +192,7 @@ export class WorkerRunner extends EventEmitter {
       const result = await raceAgainstDeadline(this._fixtureRunner.resolveParametersAndRunHookOrTest(beforeAllModifier.fn, this._workerInfo, undefined), this._deadline());
       if (result.timedOut) {
         if (!this._fatalError)
-          this._fatalError = serializeError(new Error(`Timeout of ${this._project.config.timeout}ms exceeded while running ${beforeAllModifier.type} modifier`));
+          this._fatalError = serializeError(new Error(`Timeout of ${this._project.config.timeout}ms exceeded while running ${beforeAllModifier.type} modifier\n    at ${formatLocation(beforeAllModifier.location)}`));
         this.stop();
       }
       if (!!result.result)
@@ -451,7 +451,7 @@ export class WorkerRunner extends EventEmitter {
           this._fatalError = testInfo.error;
         // Keep any error we have, and add "timeout" message.
         if (testInfo.status === 'timedOut')
-          this._fatalError = prependToTestError(this._fatalError, colors.red(`Timeout of ${testInfo.timeout}ms exceeded in ${test._type} hook.\n`));
+          this._fatalError = prependToTestError(this._fatalError, colors.red(`Timeout of ${testInfo.timeout}ms exceeded in ${test._type} hook.\n`), test.location);
       }
       this.stop();
     } else {
diff --git a/tests/playwright-test/hooks.spec.ts b/tests/playwright-test/hooks.spec.ts
index 39a0d5fe5f..c8b70d7c3d 100644
--- a/tests/playwright-test/hooks.spec.ts
+++ b/tests/playwright-test/hooks.spec.ts
@@ -450,7 +450,7 @@ test('beforeAll timeout should be reported', async ({ runInlineTest }) => {
   expect(result.output).toContain('Timeout of 1000ms exceeded in beforeAll hook.');
 });
 
-test('afterAll timeout should be reported', async ({ runInlineTest }) => {
+test('afterAll timeout should be reported', async ({ runInlineTest }, testInfo) => {
   const result = await runInlineTest({
     'a.test.js': `
       const { test } = pwt;
@@ -470,6 +470,7 @@ test('afterAll timeout should be reported', async ({ runInlineTest }) => {
     '%%afterAll',
   ]);
   expect(result.output).toContain('Timeout of 1000ms exceeded in afterAll hook.');
+  expect(result.output).toContain(`at ${testInfo.outputPath('a.test.js')}:6:12`);
 });
 
 test('beforeAll and afterAll timeouts at the same time should be reported', async ({ runInlineTest }) => {
diff --git a/tests/playwright-test/test-modifiers.spec.ts b/tests/playwright-test/test-modifiers.spec.ts
index 25ab552d38..4133b597a6 100644
--- a/tests/playwright-test/test-modifiers.spec.ts
+++ b/tests/playwright-test/test-modifiers.spec.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { test, expect } from './playwright-test-fixtures';
+import { test, expect, stripAscii } from './playwright-test-fixtures';
 
 test('test modifiers should work', async ({ runInlineTest }) => {
   const result = await runInlineTest({
@@ -318,3 +318,18 @@ test('test.skip should not define a skipped test inside another test', async ({
   expect(result.failed).toBe(1);
   expect(result.output).toContain('It looks like you are calling test.skip() inside the test and pass a callback');
 });
+
+test('modifier timeout should be reported', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'a.test.ts': `
+      const { test } = pwt;
+      test.skip(async () => new Promise(() => {}));
+      test('fails', () => {
+      });
+    `,
+  }, { timeout: 2000 });
+  expect(result.exitCode).toBe(1);
+  expect(result.failed).toBe(1);
+  expect(result.output).toContain('Error: Timeout of 2000ms exceeded while running skip modifier');
+  expect(stripAscii(result.output)).toContain('6 |       test.skip(async () => new Promise(() => {}));');
+});