diff --git a/packages/playwright-core/src/server/dom.ts b/packages/playwright-core/src/server/dom.ts
index e1942d13fd..b6ca9df065 100644
--- a/packages/playwright-core/src/server/dom.ts
+++ b/packages/playwright-core/src/server/dom.ts
@@ -436,9 +436,10 @@ export class ElementHandle<T extends Node = Node> extends js.JSHandle<T> {
       if ((options as any).__testHookBeforeHitTarget)
         await (options as any).__testHookBeforeHitTarget();
 
-      const hitPoint = await this._viewportPointToDocument(point);
-      if (hitPoint === 'error:notconnected')
-        return hitPoint;
+      const frameCheckResult = await this._checkFrameIsHitTarget(point);
+      if (frameCheckResult === 'error:notconnected' || ('hitTargetDescription' in frameCheckResult))
+        return frameCheckResult;
+      const hitPoint = frameCheckResult.framePoint;
       const actionType = actionName === 'move and up' ? 'drag' : ((actionName === 'hover' || actionName === 'tap') ? actionName : 'mouse');
       const handle = await this.evaluateHandleInUtility(([injected, node, { actionType, hitPoint, trial }]) => injected.setupHitTargetInterceptor(node, actionType, hitPoint, trial), { actionType, hitPoint, trial: !!options.trial } as const);
       if (handle === 'error:notconnected')
@@ -855,19 +856,34 @@ export class ElementHandle<T extends Node = Node> extends js.JSHandle<T> {
     return result;
   }
 
-  async _viewportPointToDocument(point: types.Point): Promise<types.Point | 'error:notconnected'> {
-    if (!this._frame.parentFrame())
-      return point;
-    const frame = await this.ownerFrame();
-    if (frame && frame.parentFrame()) {
-      const element = await frame.frameElement();
-      const box = await element.boundingBox();
+  async _checkFrameIsHitTarget(point: types.Point): Promise<{ framePoint: types.Point } | 'error:notconnected' | { hitTargetDescription: string }> {
+    let frame = this._frame;
+    const data: { frame: frames.Frame, frameElement: ElementHandle<Element> | null, pointInFrame: types.Point }[] = [];
+    while (frame.parentFrame()) {
+      const frameElement = await frame.frameElement() as ElementHandle<Element>;
+      const box = await frameElement.boundingBox();
       if (!box)
         return 'error:notconnected';
       // Translate from viewport coordinates to frame coordinates.
-      point = { x: point.x - box.x, y: point.y - box.y };
+      const pointInFrame = { x: point.x - box.x, y: point.y - box.y };
+      data.push({ frame, frameElement, pointInFrame });
+      frame = frame.parentFrame()!;
     }
-    return point;
+    // Add main frame.
+    data.push({ frame, frameElement: null, pointInFrame: point });
+
+    for (let i = data.length - 1; i > 0; i--) {
+      const element = data[i - 1].frameElement!;
+      const point = data[i].pointInFrame;
+      // Hit target in the parent frame should hit the child frame element.
+      const hitTargetResult = await element.evaluateInUtility(([injected, element, hitPoint]) => {
+        const hitElement = injected.deepElementFromPoint(document, hitPoint.x, hitPoint.y);
+        return injected.expectHitTargetParent(hitElement, element);
+      }, point);
+      if (hitTargetResult !== 'done')
+        return hitTargetResult;
+    }
+    return { framePoint: data[0].pointInFrame };
   }
 }
 
diff --git a/packages/playwright-core/src/server/injected/injectedScript.ts b/packages/playwright-core/src/server/injected/injectedScript.ts
index f2a8af0440..013ce97239 100644
--- a/packages/playwright-core/src/server/injected/injectedScript.ts
+++ b/packages/playwright-core/src/server/injected/injectedScript.ts
@@ -715,7 +715,7 @@ export class InjectedScript {
     input.dispatchEvent(new Event('change', { 'bubbles': true }));
   }
 
-  private _expectHitTargetParent(hitElement: Element | undefined, targetElement: Element) {
+  expectHitTargetParent(hitElement: Element | undefined, targetElement: Element) {
     targetElement = targetElement.closest('button, [role=button], a, [role=link]') || targetElement;
     const hitParents: Element[] = [];
     while (hitElement && hitElement !== targetElement) {
@@ -782,7 +782,7 @@ export class InjectedScript {
     // First do a preliminary check, to reduce the possibility of some iframe
     // intercepting the action.
     const preliminaryHitElement = this.deepElementFromPoint(document, hitPoint.x, hitPoint.y);
-    const preliminaryResult = this._expectHitTargetParent(preliminaryHitElement, element);
+    const preliminaryResult = this.expectHitTargetParent(preliminaryHitElement, element);
     if (preliminaryResult !== 'done')
       return preliminaryResult.hitTargetDescription;
 
@@ -817,7 +817,7 @@ export class InjectedScript {
       // subsequent events will be fine.
       if (result === undefined && point) {
         const hitElement = this.deepElementFromPoint(document, point.clientX, point.clientY);
-        result = this._expectHitTargetParent(hitElement, element);
+        result = this.expectHitTargetParent(hitElement, element);
       }
 
       if (blockAllEvents || (result !== 'done' && result !== undefined)) {
diff --git a/tests/library/hit-target.spec.ts b/tests/library/hit-target.spec.ts
index 07bdf475c4..f53493da9f 100644
--- a/tests/library/hit-target.spec.ts
+++ b/tests/library/hit-target.spec.ts
@@ -254,3 +254,22 @@ it('should not click iframe overlaying the target', async ({ page, server }) =>
   expect(await page.evaluate('window._clicked')).toBe(undefined);
   expect(error.message).toContain(`<iframe srcdoc="<body onclick='window.top._clicked=2' st…></iframe> from <div>…</div> subtree intercepts pointer events`);
 });
+
+it('should not click an element overlaying iframe with the target', async ({ page, server }) => {
+  await page.goto(server.EMPTY_PAGE);
+  await page.setContent(`
+    <div onclick='window.top._clicked=1'>padding</div>
+    <iframe width=600 height=600 srcdoc="<iframe srcdoc='<div onclick=&quot;window.top._clicked=2&quot;>padding</div><div onclick=&quot;window.top._clicked=3&quot;>inner</div>'></iframe><div onclick='window.top._clicked=4'>outer</div>"></iframe>
+    <div onclick='window.top._clicked=5' style="position: absolute; left: 0; right: 0; top: 0; bottom: 0; background: rgba(255, 0, 0, 0.1); padding: 200px;">PINK OVERLAY</div>
+  `);
+
+  const target = page.frameLocator('iframe').frameLocator('iframe').locator('text=inner');
+  const error = await target.click({ timeout: 500 }).catch(e => e);
+  expect(await page.evaluate('window._clicked')).toBe(undefined);
+  expect(error.message).toContain(`<div onclick="window.top._clicked=5">PINK OVERLAY</div> intercepts pointer events`);
+
+  await page.locator('text=overlay').evaluate(e => e.style.display = 'none');
+
+  await target.click();
+  expect(await page.evaluate('window._clicked')).toBe(3);
+});