diff --git a/packages/trace-viewer/src/ui/uiModeView.tsx b/packages/trace-viewer/src/ui/uiModeView.tsx
index f8bab8c986..1327cf1562 100644
--- a/packages/trace-viewer/src/ui/uiModeView.tsx
+++ b/packages/trace-viewer/src/ui/uiModeView.tsx
@@ -471,7 +471,10 @@ export const UIModeView: React.FC<{}> = ({
           <img src='playwright-logo.svg' alt='Playwright logo' />
           <div className='section-title'>Playwright</div>
           <ToolbarButton icon='refresh' title='Reload' onClick={() => reloadTests()} disabled={isRunningTest || isLoading}></ToolbarButton>
-          <ToolbarButton icon={'terminal'} title={'Toggle output — ' + (isMac ? '⌃`' : 'Ctrl + `')} toggled={isShowingOutput} onClick={() => { setIsShowingOutput(!isShowingOutput); }} style={outputContainsError ? { color: 'var(--vscode-minimap-errorHighlight)' } : undefined}/>
+          <div style={{ position: 'relative' }}>
+            <ToolbarButton icon={'terminal'} title={'Toggle output — ' + (isMac ? '⌃`' : 'Ctrl + `')} toggled={isShowingOutput} onClick={() => { setIsShowingOutput(!isShowingOutput); }} />
+            {outputContainsError && <div style={{ position: 'absolute', top: 2, right: 2, width: 7, height: 7, borderRadius: '50%', backgroundColor: 'var(--vscode-notificationsErrorIcon-foreground)' }} />}
+          </div>
           {!hasBrowsers && <ToolbarButton icon='lightbulb-autofix' style={{ color: 'var(--vscode-list-warningForeground)' }} title='Playwright browsers are missing' onClick={openInstallDialog} />}
         </Toolbar>
         <FiltersView