diff --git a/docs/src/test-reporter-api/class-teststep.md b/docs/src/test-reporter-api/class-teststep.md
index ef16e4849a..3b88b622e1 100644
--- a/docs/src/test-reporter-api/class-teststep.md
+++ b/docs/src/test-reporter-api/class-teststep.md
@@ -38,6 +38,12 @@ Error thrown during the step execution, if any.
 
 Parent step, if any.
 
+## property: TestStep.stack
+* since: v1.51
+- type: <[Array]<[Location]>>
+
+Call stack for this step.
+
 ## property: TestStep.startTime
 * since: v1.10
 - type: <[Date]>
diff --git a/packages/playwright-core/src/utils/timeoutRunner.ts b/packages/playwright-core/src/utils/timeoutRunner.ts
index 622019565a..f513ab331a 100644
--- a/packages/playwright-core/src/utils/timeoutRunner.ts
+++ b/packages/playwright-core/src/utils/timeoutRunner.ts
@@ -17,14 +17,19 @@
 import { monotonicTime } from './';
 
 export async function raceAgainstDeadline<T>(cb: () => Promise<T>, deadline: number): Promise<{ result: T, timedOut: false } | { timedOut: true }> {
+  // Avoid indirections to preserve better stacks.
+  if (deadline === 0) {
+    const result = await cb();
+    return { result, timedOut: false };
+  }
+
   let timer: NodeJS.Timeout | undefined;
   return Promise.race([
     cb().then(result => {
       return { result, timedOut: false };
     }),
     new Promise<{ timedOut: true }>(resolve => {
-      const kMaxDeadline = 2147483647; // 2^31-1
-      const timeout = (deadline || kMaxDeadline) - monotonicTime();
+      const timeout = deadline - monotonicTime();
       timer = setTimeout(() => resolve({ timedOut: true }), timeout);
     }),
   ]).finally(() => {
diff --git a/packages/playwright/src/common/ipc.ts b/packages/playwright/src/common/ipc.ts
index 76ee996216..32549b6bda 100644
--- a/packages/playwright/src/common/ipc.ts
+++ b/packages/playwright/src/common/ipc.ts
@@ -100,7 +100,7 @@ export type StepBeginPayload = {
   title: string;
   category: string;
   wallTime: number;  // milliseconds since unix epoch
-  location?: { file: string, line: number, column: number };
+  stack: { file: string, line: number, column: number }[];
 };
 
 export type StepEndPayload = {
diff --git a/packages/playwright/src/common/testType.ts b/packages/playwright/src/common/testType.ts
index 58d813a99e..db84bfd201 100644
--- a/packages/playwright/src/common/testType.ts
+++ b/packages/playwright/src/common/testType.ts
@@ -69,7 +69,7 @@ export class TestTypeImpl {
     this.test = test;
   }
 
-  private _currentSuite(location: Location, title: string): Suite | undefined {
+  private _currentSuite(title: string): Suite | undefined {
     const suite = currentlyLoadingFileSuite();
     if (!suite) {
       throw new Error([
@@ -86,7 +86,7 @@ export class TestTypeImpl {
 
   private _createTest(type: 'default' | 'only' | 'skip' | 'fixme' | 'fail' | 'fail.only', location: Location, title: string, fnOrDetails: Function | TestDetails, fn?: Function) {
     throwIfRunningInsideJest();
-    const suite = this._currentSuite(location, 'test()');
+    const suite = this._currentSuite('test()');
     if (!suite)
       return;
 
@@ -117,7 +117,7 @@ export class TestTypeImpl {
 
   private _describe(type: 'default' | 'only' | 'serial' | 'serial.only' | 'parallel' | 'parallel.only' | 'skip' | 'fixme', location: Location, titleOrFn: string | Function, fnOrDetails?: TestDetails | Function, fn?: Function) {
     throwIfRunningInsideJest();
-    const suite = this._currentSuite(location, 'test.describe()');
+    const suite = this._currentSuite('test.describe()');
     if (!suite)
       return;
 
@@ -169,7 +169,7 @@ export class TestTypeImpl {
   }
 
   private _hook(name: 'beforeEach' | 'afterEach' | 'beforeAll' | 'afterAll', location: Location, title: string | Function, fn?: Function) {
-    const suite = this._currentSuite(location, `test.${name}()`);
+    const suite = this._currentSuite(`test.${name}()`);
     if (!suite)
       return;
     if (typeof title === 'function') {
@@ -182,7 +182,7 @@ export class TestTypeImpl {
 
   private _configure(location: Location, options: { mode?: 'default' | 'parallel' | 'serial', retries?: number, timeout?: number }) {
     throwIfRunningInsideJest();
-    const suite = this._currentSuite(location, `test.describe.configure()`);
+    const suite = this._currentSuite(`test.describe.configure()`);
     if (!suite)
       return;
 
@@ -252,7 +252,7 @@ export class TestTypeImpl {
   }
 
   private _use(location: Location, fixtures: Fixtures) {
-    const suite = this._currentSuite(location, `test.use()`);
+    const suite = this._currentSuite(`test.use()`);
     if (!suite)
       return;
     suite._use.push({ fixtures, location });
@@ -263,11 +263,11 @@ export class TestTypeImpl {
     if (!testInfo)
       throw new Error(`test.step() can only be called from a test`);
     if (expectation === 'skip') {
-      const step = testInfo._addStep({ category: 'test.step.skip', title, location: options.location, box: options.box });
+      const step = testInfo._addStep({ category: 'test.step.skip', title, box: options.box }, undefined, options.location ? [options.location] : undefined);
       step.complete({});
       return undefined as T;
     }
-    const step = testInfo._addStep({ category: 'test.step', title, location: options.location, box: options.box });
+    const step = testInfo._addStep({ category: 'test.step', title, box: options.box }, undefined, options.location ? [options.location] : undefined);
     return await zones.run('stepZone', step, async () => {
       try {
         let result: Awaited<ReturnType<typeof raceAgainstDeadline<T>>> | undefined = undefined;
diff --git a/packages/playwright/src/index.ts b/packages/playwright/src/index.ts
index 83913c18dc..225bd9ba92 100644
--- a/packages/playwright/src/index.ts
+++ b/packages/playwright/src/index.ts
@@ -273,12 +273,11 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
         }
         // In the general case, create a step for each api call and connect them through the stepId.
         const step = testInfo._addStep({
-          location: data.frames[0],
           category: 'pw:api',
           title: renderApiCall(data.apiName, data.params),
           apiName: data.apiName,
           params: data.params,
-        }, tracingGroupSteps[tracingGroupSteps.length - 1]);
+        }, tracingGroupSteps[tracingGroupSteps.length - 1], data.frames);
         data.userData = step;
         data.stepId = step.stepId;
         if (data.apiName === 'tracing.group')
diff --git a/packages/playwright/src/isomorphic/teleReceiver.ts b/packages/playwright/src/isomorphic/teleReceiver.ts
index 1d41b793cd..222cb6864b 100644
--- a/packages/playwright/src/isomorphic/teleReceiver.ts
+++ b/packages/playwright/src/isomorphic/teleReceiver.ts
@@ -101,7 +101,8 @@ export type JsonTestStepStart = {
   title: string;
   category: string,
   startTime: number;
-  location?: reporterTypes.Location;
+  // Best effort to keep step struct small.
+  stack?: reporterTypes.Location | reporterTypes.Location[];
 };
 
 export type JsonTestStepEnd = {
@@ -249,8 +250,8 @@ export class TeleReporterReceiver {
     const result = test.results.find(r => r._id === resultId)!;
     const parentStep = payload.parentStepId ? result._stepMap.get(payload.parentStepId) : undefined;
 
-    const location = this._absoluteLocation(payload.location);
-    const step = new TeleTestStep(payload, parentStep, location, result);
+    const stack = Array.isArray(payload.stack) ? payload.stack.map(l => this._absoluteLocation(l)) : this._absoluteLocation(payload.stack);
+    const step = new TeleTestStep(payload, parentStep, stack, result);
     if (parentStep)
       parentStep.steps.push(step);
     else
@@ -426,8 +427,8 @@ export class TeleSuite implements reporterTypes.Suite {
   }
 
   allTests(): reporterTypes.TestCase[] {
-    const result: reporterTypes.TestCase[] = [];
-    const visit = (suite: reporterTypes.Suite) => {
+    const result: TeleTestCase[] = [];
+    const visit = (suite: TeleSuite) => {
       for (const entry of suite.entries()) {
         if (entry.type === 'test')
           result.push(entry);
@@ -511,6 +512,7 @@ class TeleTestStep implements reporterTypes.TestStep {
   title: string;
   category: string;
   location: reporterTypes.Location | undefined;
+  stack: reporterTypes.Location[];
   parent: reporterTypes.TestStep | undefined;
   duration: number = -1;
   steps: reporterTypes.TestStep[] = [];
@@ -521,10 +523,11 @@ class TeleTestStep implements reporterTypes.TestStep {
 
   private _startTime: number = 0;
 
-  constructor(payload: JsonTestStepStart, parentStep: reporterTypes.TestStep | undefined, location: reporterTypes.Location | undefined, result: TeleTestResult) {
+  constructor(payload: JsonTestStepStart, parentStep: reporterTypes.TestStep | undefined, stackOrLocation: reporterTypes.Location | reporterTypes.Location[] | undefined, result: TeleTestResult) {
     this.title = payload.title;
     this.category = payload.category;
-    this.location = location;
+    this.stack = Array.isArray(stackOrLocation) ? stackOrLocation : (stackOrLocation ? [stackOrLocation] : []);
+    this.location = this.stack[0];
     this.parent = parentStep;
     this._startTime = payload.startTime;
     this._result = result;
diff --git a/packages/playwright/src/isomorphic/testServerConnection.ts b/packages/playwright/src/isomorphic/testServerConnection.ts
index 22bdce30ff..e002ade0d1 100644
--- a/packages/playwright/src/isomorphic/testServerConnection.ts
+++ b/packages/playwright/src/isomorphic/testServerConnection.ts
@@ -37,7 +37,7 @@ export class WebSocketTestServerTransport implements TestServerTransport {
   }
 
   onmessage(listener: (message: string) => void) {
-    this._ws.addEventListener('message', event => listener(event.data));
+    this._ws.addEventListener('message', event => listener(String(event.data)));
   }
 
   onopen(listener: () => void) {
diff --git a/packages/playwright/src/reporters/blob.ts b/packages/playwright/src/reporters/blob.ts
index 837fe55be0..cbec1cce28 100644
--- a/packages/playwright/src/reporters/blob.ts
+++ b/packages/playwright/src/reporters/blob.ts
@@ -34,7 +34,7 @@ type BlobReporterOptions = {
   _commandHash: string;
 };
 
-export const currentBlobReportVersion = 2;
+export const currentBlobReportVersion = 3;
 
 export type BlobReportMetadata = {
   version: number;
diff --git a/packages/playwright/src/reporters/merge.ts b/packages/playwright/src/reporters/merge.ts
index 102335cceb..ce7eb88733 100644
--- a/packages/playwright/src/reporters/merge.ts
+++ b/packages/playwright/src/reporters/merge.ts
@@ -75,7 +75,8 @@ export async function createMergedReport(config: FullConfigInternal, dir: string
   await dispatchEvents(eventData.prologue);
   for (const { reportFile, eventPatchers, metadata } of eventData.reports) {
     const reportJsonl = await fs.promises.readFile(reportFile);
-    const events = parseTestEvents(reportJsonl);
+    let events = parseTestEvents(reportJsonl);
+    events = modernizer.modernize(metadata.version, events);
     new JsonStringInternalizer(stringPool).traverse(events);
     eventPatchers.patchers.push(new AttachmentPathPatcher(dir));
     if (metadata.name)
@@ -480,7 +481,8 @@ class PathSeparatorPatcher {
     }
     if (jsonEvent.method === 'onStepBegin') {
       const step = jsonEvent.params.step as JsonTestStepStart;
-      this._updateLocation(step.location);
+      for (const stackFrame of Array.isArray(step.stack) ? step.stack : [step.stack])
+        this._updateLocation(stackFrame);
       return;
     }
     if (jsonEvent.method === 'onStepEnd') {
@@ -589,6 +591,14 @@ class BlobModernizer {
       return event;
     });
   }
+
+  _modernize_2_to_3(events: JsonEvent[]): JsonEvent[] {
+    return events.map(event => {
+      if (event.method === 'onStepBegin')
+        (event.params.step as JsonTestStepStart).stack = event.params.step.location;
+      return event;
+    });
+  }
 }
 
 const modernizer = new BlobModernizer();
diff --git a/packages/playwright/src/reporters/teleEmitter.ts b/packages/playwright/src/reporters/teleEmitter.ts
index 0ec92ae9ac..d2513d8afd 100644
--- a/packages/playwright/src/reporters/teleEmitter.ts
+++ b/packages/playwright/src/reporters/teleEmitter.ts
@@ -247,7 +247,7 @@ export class TeleReporterEmitter implements ReporterV2 {
       title: step.title,
       category: step.category,
       startTime: +step.startTime,
-      location: this._relativeLocation(step.location),
+      stack: this._relativeStack(step.stack),
     };
   }
 
@@ -260,6 +260,14 @@ export class TeleReporterEmitter implements ReporterV2 {
     };
   }
 
+  private _relativeStack(stack: reporterTypes.Location[]): undefined | reporterTypes.Location | reporterTypes.Location[] {
+    if (!stack.length)
+      return undefined;
+    if (stack.length === 1)
+      return this._relativeLocation(stack[0]);
+    return stack.map(frame => this._relativeLocation(frame));
+  }
+
   private _relativeLocation(location: reporterTypes.Location): reporterTypes.Location;
   private _relativeLocation(location?: reporterTypes.Location): reporterTypes.Location | undefined;
   private _relativeLocation(location: reporterTypes.Location | undefined): reporterTypes.Location | undefined {
diff --git a/packages/playwright/src/runner/dispatcher.ts b/packages/playwright/src/runner/dispatcher.ts
index 534fe7eb4a..ae35d8461b 100644
--- a/packages/playwright/src/runner/dispatcher.ts
+++ b/packages/playwright/src/runner/dispatcher.ts
@@ -321,7 +321,8 @@ class JobDispatcher {
       duration: -1,
       steps: [],
       attachments: [],
-      location: params.location,
+      location: params.stack[0],
+      stack: params.stack,
     };
     steps.set(params.stepId, step);
     (parentStep || result).steps.push(step);
diff --git a/packages/playwright/src/util.ts b/packages/playwright/src/util.ts
index f7f91d3198..27aaa0838b 100644
--- a/packages/playwright/src/util.ts
+++ b/packages/playwright/src/util.ts
@@ -51,7 +51,7 @@ export function filterStackFile(file: string) {
   return true;
 }
 
-export function filteredStackTrace(rawStack: RawStack): StackFrame[] {
+export function filteredStackTrace(rawStack: RawStack): Location[] {
   const frames: StackFrame[] = [];
   for (const line of rawStack) {
     const frame = parseStackTraceLine(line);
@@ -59,7 +59,7 @@ export function filteredStackTrace(rawStack: RawStack): StackFrame[] {
       continue;
     if (!filterStackFile(frame.file))
       continue;
-    frames.push(frame);
+    frames.push({ file: frame.file, line: frame.line, column: frame.column });
   }
   return frames;
 }
diff --git a/packages/playwright/src/worker/testInfo.ts b/packages/playwright/src/worker/testInfo.ts
index 3efd3b3750..568384731f 100644
--- a/packages/playwright/src/worker/testInfo.ts
+++ b/packages/playwright/src/worker/testInfo.ts
@@ -26,7 +26,6 @@ import type { Annotation, FullConfigInternal, FullProjectInternal } from '../com
 import type { FullConfig, Location } from '../../types/testReporter';
 import { debugTest, filteredStackTrace, formatLocation, getContainedPath, normalizeAndSaveAttachment, trimLongString, windowsFilesystemFriendlyLength } from '../util';
 import { TestTracing } from './testTracing';
-import type { StackFrame } from '@protocol/channels';
 import { testInfoError } from './util';
 
 export interface TestStepInternal {
@@ -35,8 +34,8 @@ export interface TestStepInternal {
   stepId: string;
   title: string;
   category: string;
-  location?: Location;
-  boxedStack?: StackFrame[];
+  stack: Location[];
+  boxedStack?: Location[];
   steps: TestStepInternal[];
   endWallTime?: number;
   apiName?: string;
@@ -244,7 +243,7 @@ export class TestInfoImpl implements TestInfo {
       ?? this._findLastStageStep(this._steps); // If no parent step on stack, assume the current stage as parent.
   }
 
-  _addStep(data: Omit<TestStepInternal, 'complete' | 'stepId' | 'steps' | 'attachmentIndices'>, parentStep?: TestStepInternal): TestStepInternal {
+  _addStep(data: Omit<TestStepInternal, 'complete' | 'stepId' | 'steps' | 'attachmentIndices' | 'stack'>, parentStep?: TestStepInternal, stackOverride?: Location[]): TestStepInternal {
     const stepId = `${data.category}@${++this._lastStepId}`;
 
     if (data.isStage) {
@@ -255,18 +254,20 @@ export class TestInfoImpl implements TestInfo {
         parentStep = this._parentStep();
     }
 
-    const filteredStack = filteredStackTrace(captureRawStack());
+    const filteredStack = stackOverride ? stackOverride : filteredStackTrace(captureRawStack());
     data.boxedStack = parentStep?.boxedStack;
+    let stack = filteredStack;
     if (!data.boxedStack && data.box) {
       data.boxedStack = filteredStack.slice(1);
-      data.location = data.location || data.boxedStack[0];
+      // Only steps with box: true get boxed stack. Inner steps have original stack for better traceability.
+      stack = data.boxedStack;
     }
-    data.location = data.location || filteredStack[0];
 
     const attachmentIndices: number[] = [];
     const step: TestStepInternal = {
       stepId,
       ...data,
+      stack,
       steps: [],
       attachmentIndices,
       complete: result => {
@@ -319,10 +320,10 @@ export class TestInfoImpl implements TestInfo {
       title: data.title,
       category: data.category,
       wallTime: Date.now(),
-      location: data.location,
+      stack,
     };
     this._onStepBegin(payload);
-    this._tracing.appendBeforeActionForStep(stepId, parentStep?.stepId, data.category, data.apiName || data.title, data.params, data.location ? [data.location] : []);
+    this._tracing.appendBeforeActionForStep(stepId, parentStep?.stepId, data.category, data.apiName || data.title, data.params, stack);
     return step;
   }
 
@@ -351,7 +352,7 @@ export class TestInfoImpl implements TestInfo {
       const location = stage.runnable?.location ? ` at "${formatLocation(stage.runnable.location)}"` : ``;
       debugTest(`started stage "${stage.title}"${location}`);
     }
-    stage.step = stage.stepInfo ? this._addStep({ ...stage.stepInfo, title: stage.title, isStage: true }) : undefined;
+    stage.step = stage.stepInfo ? this._addStep({ category: stage.stepInfo.category, title: stage.title, isStage: true }, undefined, stage.stepInfo.location ? [stage.stepInfo.location] : undefined) : undefined;
 
     try {
       await this._timeoutManager.withRunnable(stage.runnable, async () => {
diff --git a/packages/playwright/src/worker/workerMain.ts b/packages/playwright/src/worker/workerMain.ts
index b4878ff659..7809f3a033 100644
--- a/packages/playwright/src/worker/workerMain.ts
+++ b/packages/playwright/src/worker/workerMain.ts
@@ -555,7 +555,7 @@ export class WorkerMain extends ProcessRunner {
     let firstError: Error | undefined;
     const hooks = suites.map(suite => this._collectHooksAndModifiers(suite, type, testInfo)).flat();
     for (const hook of hooks) {
-      const runnable = { type: hook.type, location: hook.location, slot };
+      const runnable = { type: hook.type, stack: [hook.location], slot };
       if (testInfo._timeoutManager.isTimeExhaustedFor(runnable)) {
         // Do not run hooks that will timeout right away.
         continue;
diff --git a/packages/playwright/types/testReporter.d.ts b/packages/playwright/types/testReporter.d.ts
index 3f3a43984e..7e5e703810 100644
--- a/packages/playwright/types/testReporter.d.ts
+++ b/packages/playwright/types/testReporter.d.ts
@@ -747,6 +747,11 @@ export interface TestStep {
    */
   parent?: TestStep;
 
+  /**
+   * Call stack for this step.
+   */
+  stack: Array<Location>;
+
   /**
    * Start time of this particular test step.
    */
diff --git a/tests/playwright-test/reporter-blob.spec.ts b/tests/playwright-test/reporter-blob.spec.ts
index e16fbcc460..a8bc6a0da0 100644
--- a/tests/playwright-test/reporter-blob.spec.ts
+++ b/tests/playwright-test/reporter-blob.spec.ts
@@ -1432,7 +1432,7 @@ test('blob report should include version', async ({ runInlineTest }) => {
 
   const events = await extractReport(test.info().outputPath('blob-report', 'report.zip'), test.info().outputPath('tmp'));
   const metadataEvent = events.find(e => e.method === 'onBlobReportMetadata');
-  expect(metadataEvent.params.version).toBe(2);
+  expect(metadataEvent.params.version).toBe(3);
   expect(metadataEvent.params.userAgent).toBe(getUserAgent());
 });
 
diff --git a/tests/playwright-test/test-step.spec.ts b/tests/playwright-test/test-step.spec.ts
index 7d509fda25..5963c7d3dd 100644
--- a/tests/playwright-test/test-step.spec.ts
+++ b/tests/playwright-test/test-step.spec.ts
@@ -30,6 +30,12 @@ function formatLocation(location?: Location) {
   return ' @ ' + path.basename(location.file) + ':' + location.line;
 }
 
+function formatStackFrames(stack: Location[]) {
+  if (stack.length < 2)
+    return '';
+  return ' @stack [' + stack.map(l => path.basename(l.file) + ':' + l.line).join(' | ') + ']';
+}
+
 function formatStack(indent: string, rawStack: string) {
   let stack = rawStack.split('\\n').filter(s => s.startsWith('    at '));
   stack = stack.map(s => {
@@ -75,7 +81,8 @@ export default class MyReporter implements Reporter {
     let location = '';
     if (step.location)
       location = formatLocation(step.location);
-    console.log(formatPrefix(step.category) + indent + step.title + location);
+    let stack = formatStackFrames(step.stack);
+    console.log(formatPrefix(step.category) + indent + step.title + location + stack);
     if (step.error) {
       const errorLocation = this.printErrorLocation ? formatLocation(step.error.location) : '';
       console.log(formatPrefix(step.category) + indent + '↪ error: ' + this.trimError(step.error.message!) + errorLocation);
@@ -143,11 +150,11 @@ pw:api    |    browser.newContext
 fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 test.step |outer step 1 @ a.test.ts:4
-test.step |  inner step 1.1 @ a.test.ts:5
-test.step |  inner step 1.2 @ a.test.ts:6
+test.step |  inner step 1.1 @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4]
+test.step |  inner step 1.2 @ a.test.ts:6 @stack [a.test.ts:6 | a.test.ts:4]
 test.step |outer step 2 @ a.test.ts:8
-test.step |  inner step 2.1 @ a.test.ts:9
-test.step |  inner step 2.2 @ a.test.ts:10
+test.step |  inner step 2.1 @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:8]
+test.step |  inner step 2.2 @ a.test.ts:10 @stack [a.test.ts:10 | a.test.ts:8]
 hook      |After Hooks
 fixture   |  fixture: page
 fixture   |  fixture: context
@@ -485,9 +492,9 @@ test('should mark step as failed when soft expect fails', async ({ runInlineTest
 hook      |Before Hooks
 test.step |outer @ a.test.ts:4
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality
-test.step |  inner @ a.test.ts:5
+test.step |  inner @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4]
 test.step |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality
-expect    |    expect.soft.toBe @ a.test.ts:6
+expect    |    expect.soft.toBe @ a.test.ts:6 @stack [a.test.ts:6 | a.test.ts:5 | a.test.ts:4]
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 test.step |passing @ a.test.ts:9
 hook      |After Hooks
@@ -555,12 +562,12 @@ pw:api    |    browser.newContext
 fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 test.step |grand @ a.test.ts:20
-test.step |  parent1 @ a.test.ts:22
-test.step |    child1 @ a.test.ts:23
-pw:api    |      page.click(body) @ a.test.ts:24
-test.step |  parent2 @ a.test.ts:27
-test.step |    child2 @ a.test.ts:28
-expect    |      expect.toBeVisible @ a.test.ts:29
+test.step |  parent1 @ a.test.ts:22 @stack [a.test.ts:22 | a.test.ts:20]
+test.step |    child1 @ a.test.ts:23 @stack [a.test.ts:23 | a.test.ts:22 | a.test.ts:20]
+pw:api    |      page.click(body) @ a.test.ts:24 @stack [a.test.ts:24 | a.test.ts:23 | a.test.ts:22 | a.test.ts:20]
+test.step |  parent2 @ a.test.ts:27 @stack [a.test.ts:27 | a.test.ts:20]
+test.step |    child2 @ a.test.ts:28 @stack [a.test.ts:28 | a.test.ts:27 | a.test.ts:20]
+expect    |      expect.toBeVisible @ a.test.ts:29 @stack [a.test.ts:29 | a.test.ts:28 | a.test.ts:27 | a.test.ts:20]
 hook      |After Hooks
 hook      |  afterEach hook @ a.test.ts:15
 test.step |    in afterEach @ a.test.ts:16
@@ -701,15 +708,15 @@ test('should propagate nested soft errors', async ({ runInlineTest }) => {
 hook      |Before Hooks
 test.step |first outer @ a.test.ts:4
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality
-test.step |  first inner @ a.test.ts:5
+test.step |  first inner @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4]
 test.step |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality
-expect    |    expect.soft.toBe @ a.test.ts:6
+expect    |    expect.soft.toBe @ a.test.ts:6 @stack [a.test.ts:6 | a.test.ts:5 | a.test.ts:4]
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 test.step |second outer @ a.test.ts:10
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality
-test.step |  second inner @ a.test.ts:11
+test.step |  second inner @ a.test.ts:11 @stack [a.test.ts:11 | a.test.ts:10]
 test.step |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality
-expect    |    expect.toBe @ a.test.ts:12
+expect    |    expect.toBe @ a.test.ts:12 @stack [a.test.ts:12 | a.test.ts:11 | a.test.ts:10]
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 hook      |After Hooks
 hook      |Worker Cleanup
@@ -747,14 +754,14 @@ test('should not propagate nested hard errors', async ({ runInlineTest }) => {
   expect(stripAnsi(result.output)).toBe(`
 hook      |Before Hooks
 test.step |first outer @ a.test.ts:4
-test.step |  first inner @ a.test.ts:5
-expect    |    expect.toBe @ a.test.ts:7
+test.step |  first inner @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4]
+expect    |    expect.toBe @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:5 | a.test.ts:4]
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 test.step |second outer @ a.test.ts:13
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality
-test.step |  second inner @ a.test.ts:14
+test.step |  second inner @ a.test.ts:14 @stack [a.test.ts:14 | a.test.ts:13]
 test.step |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality
-expect    |    expect.toBe @ a.test.ts:15
+expect    |    expect.toBe @ a.test.ts:15 @stack [a.test.ts:15 | a.test.ts:14 | a.test.ts:13]
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 hook      |After Hooks
 hook      |Worker Cleanup
@@ -783,7 +790,7 @@ test.step |boxed step @ a.test.ts:3
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality @ a.test.ts:4
 test.step |    at a.test.ts:4:27
 test.step |    at a.test.ts:3:26
-expect    |  expect.toBe @ a.test.ts:4
+expect    |  expect.toBe @ a.test.ts:4 @stack [a.test.ts:4 | a.test.ts:3]
 expect    |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality @ a.test.ts:4
 expect    |      at a.test.ts:4:27
 expect    |      at a.test.ts:3:26
@@ -818,7 +825,7 @@ hook      |Before Hooks
 test.step |boxed step @ a.test.ts:8
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality @ a.test.ts:8
 test.step |    at a.test.ts:8:21
-expect    |  expect.toBe @ a.test.ts:5
+expect    |  expect.toBe @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4 | a.test.ts:8]
 expect    |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality @ a.test.ts:8
 expect    |      at a.test.ts:8:21
 hook      |After Hooks
@@ -851,7 +858,7 @@ hook      |Before Hooks
 test.step |boxed step @ a.test.ts:8
 test.step |↪ error: Error: expect(received).toBe(expected) // Object.is equality @ a.test.ts:8
 test.step |    at a.test.ts:8:21
-expect    |  expect.soft.toBe @ a.test.ts:5
+expect    |  expect.soft.toBe @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4 | a.test.ts:8]
 expect    |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality @ a.test.ts:8
 expect    |      at a.test.ts:8:21
 hook      |After Hooks
@@ -930,16 +937,16 @@ test('step inside expect.toPass', async ({ runInlineTest }) => {
   expect(stripAnsi(result.output)).toBe(`
 hook      |Before Hooks
 test.step |step 1 @ a.test.ts:4
-step      |  expect.toPass @ a.test.ts:11
+step      |  expect.toPass @ a.test.ts:11 @stack [a.test.ts:11 | a.test.ts:4]
 test.step |    step 2, attempt: 0 @ a.test.ts:7
 test.step |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
-expect    |      expect.toBe @ a.test.ts:9
+expect    |      expect.toBe @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:7]
 expect    |      ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 test.step |    step 2, attempt: 1 @ a.test.ts:7
-expect    |      expect.toBe @ a.test.ts:9
-test.step |  step 3 @ a.test.ts:12
-test.step |    step 4 @ a.test.ts:13
-expect    |      expect.toBe @ a.test.ts:14
+expect    |      expect.toBe @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:7]
+test.step |  step 3 @ a.test.ts:12 @stack [a.test.ts:12 | a.test.ts:4]
+test.step |    step 4 @ a.test.ts:13 @stack [a.test.ts:13 | a.test.ts:12 | a.test.ts:4]
+expect    |      expect.toBe @ a.test.ts:14 @stack [a.test.ts:14 | a.test.ts:13 | a.test.ts:12 | a.test.ts:4]
 hook      |After Hooks
 `);
 });
@@ -979,13 +986,13 @@ fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 step      |expect.toPass @ a.test.ts:11
 pw:api    |  page.goto(about:blank) @ a.test.ts:6
-test.step |  inner step attempt: 0 @ a.test.ts:7
+test.step |  inner step attempt: 0 @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:5]
 test.step |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality
-expect    |    expect.toBe @ a.test.ts:9
+expect    |    expect.toBe @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:7 | a.test.ts:5]
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 pw:api    |  page.goto(about:blank) @ a.test.ts:6
-test.step |  inner step attempt: 1 @ a.test.ts:7
-expect    |    expect.toBe @ a.test.ts:9
+test.step |  inner step attempt: 1 @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:5]
+expect    |    expect.toBe @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:7 | a.test.ts:5]
 hook      |After Hooks
 fixture   |  fixture: page
 fixture   |  fixture: context
@@ -1030,13 +1037,13 @@ fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 step      |expect.poll.toHaveLength @ a.test.ts:14
 pw:api    |  page.goto(about:blank) @ a.test.ts:7
-test.step |  inner step attempt: 0 @ a.test.ts:8
-expect    |    expect.toBe @ a.test.ts:10
+test.step |  inner step attempt: 0 @ a.test.ts:8 @stack [a.test.ts:8 | a.test.ts:6]
+expect    |    expect.toBe @ a.test.ts:10 @stack [a.test.ts:10 | a.test.ts:8 | a.test.ts:6]
 expect    |  expect.toHaveLength @ a.test.ts:6
 expect    |  ↪ error: Error: expect(received).toHaveLength(expected)
 pw:api    |  page.goto(about:blank) @ a.test.ts:7
-test.step |  inner step attempt: 1 @ a.test.ts:8
-expect    |    expect.toBe @ a.test.ts:10
+test.step |  inner step attempt: 1 @ a.test.ts:8 @stack [a.test.ts:8 | a.test.ts:6]
+expect    |    expect.toBe @ a.test.ts:10 @stack [a.test.ts:10 | a.test.ts:8 | a.test.ts:6]
 expect    |  expect.toHaveLength @ a.test.ts:6
 hook      |After Hooks
 fixture   |  fixture: page
@@ -1082,13 +1089,13 @@ pw:api    |    browserContext.newPage
 pw:api    |page.setContent @ a.test.ts:4
 step      |expect.poll.toBe @ a.test.ts:13
 expect    |  expect.toHaveText @ a.test.ts:7
-test.step |  iteration 1 @ a.test.ts:9
-expect    |    expect.toBeVisible @ a.test.ts:10
+test.step |  iteration 1 @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:6]
+expect    |    expect.toBeVisible @ a.test.ts:10 @stack [a.test.ts:10 | a.test.ts:9 | a.test.ts:6]
 expect    |  expect.toBe @ a.test.ts:6
 expect    |  ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 expect    |  expect.toHaveText @ a.test.ts:7
-test.step |  iteration 2 @ a.test.ts:9
-expect    |    expect.toBeVisible @ a.test.ts:10
+test.step |  iteration 2 @ a.test.ts:9 @stack [a.test.ts:9 | a.test.ts:6]
+expect    |    expect.toBeVisible @ a.test.ts:10 @stack [a.test.ts:10 | a.test.ts:9 | a.test.ts:6]
 expect    |  expect.toBe @ a.test.ts:6
 hook      |After Hooks
 fixture   |  fixture: page
@@ -1374,10 +1381,10 @@ pw:api    |    browser.newContext
 fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 test.step |my step 1 @ a.test.ts:4
-test.step |  my step 2 @ a.test.ts:5
-pw:api    |    my group 1 @ a.test.ts:6
-pw:api    |      my group 2 @ a.test.ts:7
-pw:api    |        page.setContent @ a.test.ts:8
+test.step |  my step 2 @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4]
+pw:api    |    my group 1 @ a.test.ts:6 @stack [a.test.ts:6 | a.test.ts:5 | a.test.ts:4]
+pw:api    |      my group 2 @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:5 | a.test.ts:4]
+pw:api    |        page.setContent @ a.test.ts:8 @stack [a.test.ts:8 | a.test.ts:5 | a.test.ts:4]
 hook      |After Hooks
 fixture   |  fixture: page
 fixture   |  fixture: context
@@ -1426,8 +1433,8 @@ pw:api    |    browserContext.newPage
 pw:api    |page.goto(${server.EMPTY_PAGE}) @ a.test.ts:4
 pw:api    |page.setContent @ a.test.ts:5
 test.step |custom step @ a.test.ts:6
-pw:api    |  page.waitForResponse @ a.test.ts:7
-pw:api    |  page.click(div) @ a.test.ts:14
+pw:api    |  page.waitForResponse @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:6]
+pw:api    |  page.click(div) @ a.test.ts:14 @stack [a.test.ts:14 | a.test.ts:6]
 pw:api    |  page.content @ a.test.ts:8
 pw:api    |  page.content @ a.test.ts:9
 expect    |  expect.toContainText @ a.test.ts:10
@@ -1509,8 +1516,8 @@ pw:api    |    browser.newContext
 fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 test.step |custom step @ a.test.ts:4
-pw:api    |  page.route @ a.test.ts:5
-pw:api    |  page.goto(${server.EMPTY_PAGE}) @ a.test.ts:12
+pw:api    |  page.route @ a.test.ts:5 @stack [a.test.ts:5 | a.test.ts:4]
+pw:api    |  page.goto(${server.EMPTY_PAGE}) @ a.test.ts:12 @stack [a.test.ts:12 | a.test.ts:4]
 pw:api    |  apiResponse.text @ a.test.ts:7
 expect    |  expect.toBe @ a.test.ts:8
 pw:api    |  apiResponse.text @ a.test.ts:9
@@ -1551,9 +1558,9 @@ test('test.step.skip should work', async ({ runInlineTest }) => {
 hook      |Before Hooks
 test.step.skip|outer step 1 @ a.test.ts:4
 test.step |outer step 2 @ a.test.ts:11
-test.step.skip|  inner step 2.1 @ a.test.ts:12
-test.step |  inner step 2.2 @ a.test.ts:13
-expect    |    expect.toBe @ a.test.ts:14
+test.step.skip|  inner step 2.1 @ a.test.ts:12 @stack [a.test.ts:12 | a.test.ts:11]
+test.step |  inner step 2.2 @ a.test.ts:13 @stack [a.test.ts:13 | a.test.ts:11]
+expect    |    expect.toBe @ a.test.ts:14 @stack [a.test.ts:14 | a.test.ts:13 | a.test.ts:11]
 hook      |After Hooks
 `);
 });
@@ -1581,7 +1588,7 @@ test('skip test.step.skip body', async ({ runInlineTest }) => {
   expect(stripAnsi(result.output)).toBe(`
 hook      |Before Hooks
 test.step |outer step 2 @ a.test.ts:5
-test.step.skip|  inner step 2 @ a.test.ts:6
+test.step.skip|  inner step 2 @ a.test.ts:6 @stack [a.test.ts:6 | a.test.ts:5]
 expect    |expect.toBe @ a.test.ts:10
 hook      |After Hooks
 `);
@@ -1627,7 +1634,7 @@ fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 pw:api    |page.setContent @ a.test.ts:16
 expect    |expect.toBeInvisible @ a.test.ts:17
-step      |  expect.poll.toBe @ a.test.ts:7
+step      |  expect.poll.toBe @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:17]
 pw:api    |    locator.isVisible(div) @ a.test.ts:7
 expect    |    expect.toBe @ a.test.ts:7
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
@@ -1641,7 +1648,7 @@ pw:api    |    locator.isVisible(div) @ a.test.ts:7
 expect    |    expect.toBe @ a.test.ts:7
 expect    |    ↪ error: Error: expect(received).toBe(expected) // Object.is equality
 pw:api    |    locator.isVisible(div) @ a.test.ts:7
-expect    |    expect.toBe @ a.test.ts:7
+expect    |    expect.toBe @ a.test.ts:7 @stack [a.test.ts:7 | a.test.ts:20]
 pw:api    |page.waitForTimeout @ a.test.ts:18
 pw:api    |page.setContent @ a.test.ts:19
 hook      |After Hooks
@@ -1649,3 +1656,32 @@ fixture   |  fixture: page
 fixture   |  fixture: context
 `);
 });
+
+test('should provide stack for steps', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'playwright.config.ts': `module.exports = { reporter: './reporter' };`,
+    'reporter.ts': stepIndentReporter,
+    'helper.ts': `
+      import { test } from '@playwright/test';
+
+      export async function helperStep() {
+        await test.step('step', () => {});
+      }
+    `,
+    'a.test.ts': `
+      import { test } from '@playwright/test';
+      import { helperStep } from './helper';
+
+      test('pass', async () => {
+        await helperStep();
+      });
+    `
+  }, { reporter: '', workers: 1 });
+
+  expect(result.exitCode).toBe(0);
+  expect(stripAnsi(result.output)).toBe(`
+hook      |Before Hooks
+test.step |step @ helper.ts:5 @stack [helper.ts:5 | a.test.ts:6]
+hook      |After Hooks
+`);
+});