diff --git a/packages/playwright-test/src/index.ts b/packages/playwright-test/src/index.ts
index 0ecd1ebb79..7ad2e389d6 100644
--- a/packages/playwright-test/src/index.ts
+++ b/packages/playwright-test/src/index.ts
@@ -239,7 +239,7 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
 
   _snapshotSuffix: [process.platform, { scope: 'worker' }],
 
-  _setupContextOptionsAndArtifacts: [async ({ playwright, _snapshotSuffix, _combinedContextOptions, _reuseContext, _artifactsDir, trace, screenshot, actionTimeout, navigationTimeout, testIdAttribute }, use, testInfo) => {
+  _setupContextOptionsAndArtifacts: [async ({ playwright, _snapshotSuffix, _combinedContextOptions, _artifactsDir, trace, screenshot, actionTimeout, navigationTimeout, testIdAttribute }, use, testInfo) => {
     if (testIdAttribute)
       playwrightLibrary.selectors.setTestIdAttribute(testIdAttribute);
     testInfo.snapshotSuffix = _snapshotSuffix;
@@ -376,11 +376,15 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
       (browserType as any)._onDidCreateContext = onDidCreateBrowserContext;
       (browserType as any)._onWillCloseContext = onWillCloseContext;
       (browserType as any)._defaultContextOptions = _combinedContextOptions;
+      const promises: Promise<void>[] = [];
       const existingContexts = Array.from((browserType as any)._contexts) as BrowserContext[];
-      if (_reuseContext)
-        existingContexts.forEach(c => reusedContexts.add(c));
-      else
-        await Promise.all(existingContexts.map(onDidCreateBrowserContext));
+      for (const context of existingContexts) {
+        if ((context as any)[kIsReusedContext])
+          reusedContexts.add(context);
+        else
+          promises.push(onDidCreateBrowserContext(context));
+      }
+      await Promise.all(promises);
     }
     {
       (playwright.request as any)._onDidCreateContext = onDidCreateRequestContext;
@@ -540,6 +544,7 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
 
     const defaultContextOptions = (playwright.chromium as any)._defaultContextOptions as BrowserContextOptions;
     const context = await (browser as any)._newContextForReuse(defaultContextOptions);
+    (context as any)[kIsReusedContext] = true;
     await use(context);
   },
 
@@ -631,6 +636,7 @@ function normalizeScreenshotMode(screenshot: PlaywrightWorkerOptions['screenshot
 }
 
 const kTracingStarted = Symbol('kTracingStarted');
+const kIsReusedContext = Symbol('kReusedContext');
 
 function connectOptionsFromEnv() {
   const wsEndpoint = process.env.PW_TEST_CONNECT_WS_ENDPOINT;
diff --git a/tests/playwright-test/playwright.reuse.spec.ts b/tests/playwright-test/playwright.reuse.spec.ts
index e521e7d486..5601c5f302 100644
--- a/tests/playwright-test/playwright.reuse.spec.ts
+++ b/tests/playwright-test/playwright.reuse.spec.ts
@@ -516,3 +516,38 @@ test('should not delete others contexts', async ({ runInlineTest }) => {
   expect(result.exitCode).toBe(0);
   expect(result.passed).toBe(1);
 });
+
+test('should survive serial mode with tracing and reuse', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'playwright.config.ts': `
+      import { defineConfig } from '@playwright/test';
+      export default defineConfig({ use: { trace: 'on' } });
+    `,
+    'reuse.spec.ts': `
+      import { test, expect } from '@playwright/test';
+      let page;
+
+      test.describe.configure({ mode: 'serial' });
+
+      test.beforeAll(async ({ browser }) => {
+        page = await browser.newPage();
+      });
+
+      test('one', async ({}) => {
+        await page.setContent('<button>Click</button>');
+        await page.click('button');
+      });
+
+      test('two', async ({}) => {
+        await page.setContent('<input>');
+        await page.fill('input', 'value');
+      });
+    `,
+  }, { workers: 1 }, { PW_TEST_REUSE_CONTEXT: '1' });
+
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(2);
+
+  expect(fs.existsSync(testInfo.outputPath('test-results', 'reuse-one', 'trace.zip'))).toBe(true);
+  expect(fs.existsSync(testInfo.outputPath('test-results', 'reuse-two', 'trace.zip'))).toBe(true);
+});