diff --git a/packages/playwright-ct-core/src/devServer.ts b/packages/playwright-ct-core/src/devServer.ts
index 88d21fbf5d..eec7f9c0d7 100644
--- a/packages/playwright-ct-core/src/devServer.ts
+++ b/packages/playwright-ct-core/src/devServer.ts
@@ -26,11 +26,11 @@ import { source as injectedSource } from './generated/indexSource';
 import { createConfig, populateComponentsFromTests, resolveDirs, transformIndexFile } from './viteUtils';
 import type { ComponentRegistry } from './viteUtils';
 
-export async function runDevServer(configFile: string, registerSourceFile: string, frameworkPluginFactory: () => Promise<any>) {
+export async function loadConfig(configFile: string): Promise<FullConfigInternal | null> {
   const configFileOrDirectory = configFile ? path.resolve(process.cwd(), configFile) : process.cwd();
   const resolvedConfigFile = resolveConfigFile(configFileOrDirectory);
   if (restartWithExperimentalTsEsm(resolvedConfigFile))
-    return;
+    return null;
 
   const configLoader = new ConfigLoader();
   let config: FullConfigInternal;
@@ -38,6 +38,13 @@ export async function runDevServer(configFile: string, registerSourceFile: strin
     config = await configLoader.loadConfigFile(resolvedConfigFile);
   else
     config = await configLoader.loadEmptyConfig(configFileOrDirectory);
+  return config;
+}
+
+export async function runDevServer(configFile: string, registerSourceFile: string, frameworkPluginFactory: () => Promise<any>) {
+  const config = await loadConfig(configFile);
+  if (!config)
+    return;
 
   const runner = new Runner(config);
   await runner.loadAllTests(true);
diff --git a/packages/playwright-ct-core/src/program.ts b/packages/playwright-ct-core/src/program.ts
index fa4eeb4ccd..d934324052 100644
--- a/packages/playwright-ct-core/src/program.ts
+++ b/packages/playwright-ct-core/src/program.ts
@@ -16,8 +16,11 @@
 
 import type { Command } from 'playwright-core/lib/utilsBundle';
 
+import fs from 'fs';
 import { program } from 'playwright/lib/program';
-import { runDevServer } from './devServer';
+import { loadConfig, runDevServer } from './devServer';
+import { resolveDirs } from './viteUtils';
+import { cacheDir } from 'playwright/lib/transform/compilationCache';
 export { program } from 'playwright/lib/program';
 
 let registerSourceFile: string;
@@ -31,10 +34,37 @@ export function initializePlugin(registerSource: string, factory: () => Promise<
 function addDevServerCommand(program: Command) {
   const command = program.command('dev-server');
   command.description('start dev server');
-  command.option('-c, --config <file>', `Configuration file. Can be used to specify additional configuration for the output report.`);
+  command.option('-c, --config <file>', `Configuration file.`);
   command.action(options => {
     runDevServer(options.config, registerSourceFile, frameworkPluginFactory);
   });
 }
 
+function addClearCacheCommand(program: Command) {
+  const command = program.command('clear-caches');
+  command.description('clears build and test caches');
+  command.option('-c, --config <file>', `Configuration file.`);
+  command.action(async options => {
+    const configFile = options.config;
+    const config = await loadConfig(configFile);
+    if (!config)
+      return;
+    const { outDir } = await resolveDirs(config.configDir, config.config);
+    await removeFolder(outDir);
+    await removeFolder(cacheDir);
+  });
+}
+
+async function removeFolder(folder: string) {
+  try {
+    if (!fs.existsSync(folder))
+      return;
+    // eslint-disable-next-line no-console
+    console.log(`Removing ${await fs.promises.realpath(folder)}`);
+    await fs.promises.rm(folder, { recursive: true, force: true });
+  } catch {
+  }
+}
+
 addDevServerCommand(program);
+addClearCacheCommand(program);
diff --git a/packages/playwright/src/transform/compilationCache.ts b/packages/playwright/src/transform/compilationCache.ts
index 97163cf7d9..f840e13080 100644
--- a/packages/playwright/src/transform/compilationCache.ts
+++ b/packages/playwright/src/transform/compilationCache.ts
@@ -47,7 +47,7 @@ type SerializedCompilationCache = {
 // - For workers-only dynamic imports or some cache problems, we will re-transpile files in
 //   each worker anew.
 
-const cacheDir = process.env.PWTEST_CACHE_DIR || (() => {
+export const cacheDir = process.env.PWTEST_CACHE_DIR || (() => {
   if (process.platform === 'win32')
     return path.join(os.tmpdir(), `playwright-transform-cache`);
   // Use `geteuid()` instead of more natural `os.userInfo().username`