diff --git a/packages/playwright-core/src/server/chromium/crApp.ts b/packages/playwright-core/src/server/chromium/crApp.ts
index 1ae096078c..bfa8819f2d 100644
--- a/packages/playwright-core/src/server/chromium/crApp.ts
+++ b/packages/playwright-core/src/server/chromium/crApp.ts
@@ -41,6 +41,9 @@ export async function syncLocalStorageWithSettings(page: Page, appName: string)
   const settings = await fs.promises.readFile(settingsFile, 'utf-8').catch(() => ('{}'));
   await page.addInitScript(
       `(${String((settings: any) => {
+        // iframes w/ snapshots, etc.
+        if (location && location.protocol === 'data:')
+          return;
         Object.entries(settings).map(([k, v]) => localStorage[k] = v);
         (window as any).saveSettings = () => {
           (window as any)._saveSerializedSettings(JSON.stringify({ ...localStorage }));
diff --git a/packages/trace-viewer/src/sw.ts b/packages/trace-viewer/src/sw.ts
index 488b8928b8..c778d09d34 100644
--- a/packages/trace-viewer/src/sw.ts
+++ b/packages/trace-viewer/src/sw.ts
@@ -42,9 +42,6 @@ async function loadTrace(traceUrl: string, traceFileName: string | null, clientI
   try {
     await traceModel.load(traceUrl, progress);
   } catch (error: any) {
-    // eslint-disable-next-line no-console
-    console.error(error);
-
     if (error?.message?.includes('Cannot find .trace file') && await traceModel.hasEntry('index.html'))
       throw new Error('Could not load trace. Did you upload a Playwright HTML report instead? Make sure to extract the archive first and then double-click the index.html file or put it on a web server.');
     else if (traceFileName)
diff --git a/packages/trace-viewer/src/ui/snapshotTab.css b/packages/trace-viewer/src/ui/snapshotTab.css
index a83e83d792..d51ae00f10 100644
--- a/packages/trace-viewer/src/ui/snapshotTab.css
+++ b/packages/trace-viewer/src/ui/snapshotTab.css
@@ -153,4 +153,5 @@ body.dark-mode .window-header {
 
 .snapshot-tab .cm-wrapper {
   line-height: 23px;
+  margin-right: 4px;
 }
diff --git a/packages/trace-viewer/src/ui/snapshotTab.tsx b/packages/trace-viewer/src/ui/snapshotTab.tsx
index 7a4cac8c7e..eefa47bd70 100644
--- a/packages/trace-viewer/src/ui/snapshotTab.tsx
+++ b/packages/trace-viewer/src/ui/snapshotTab.tsx
@@ -137,7 +137,6 @@ export const SnapshotTab: React.FunctionComponent<{
         setHighlightedLocator('');
         setIsInspecting(!pickerVisible);
       }}>Pick locator</ToolbarButton>
-      <div style={{ width: 5 }}></div>
       {['action', 'before', 'after'].map(tab => {
         return <TabbedPaneTab
           id={tab}
diff --git a/packages/trace-viewer/src/ui/sourceTab.css b/packages/trace-viewer/src/ui/sourceTab.css
index f3c0f6171b..454bce651a 100644
--- a/packages/trace-viewer/src/ui/sourceTab.css
+++ b/packages/trace-viewer/src/ui/sourceTab.css
@@ -21,3 +21,13 @@
   display: flex;
   flex-direction: row;
 }
+
+.source-tab-file-name {
+  height: 24px;
+  margin-left: 8px;
+  display: flex;
+  align-items: center;
+  background-color: var(--vscode-breadcrumb-background);
+  box-shadow: var(--vscode-scrollbar-shadow) 0 6px 6px -6px;
+  z-index: 200;
+}
diff --git a/packages/trace-viewer/src/ui/sourceTab.tsx b/packages/trace-viewer/src/ui/sourceTab.tsx
index 7a5b7d6a61..3951ddde91 100644
--- a/packages/trace-viewer/src/ui/sourceTab.tsx
+++ b/packages/trace-viewer/src/ui/sourceTab.tsx
@@ -29,8 +29,9 @@ export const SourceTab: React.FunctionComponent<{
   action: ActionTraceEvent | undefined,
   sources: Map<string, SourceModel>,
   hideStackFrames?: boolean,
+  rootDir?: string,
   fallbackLocation?: StackFrame,
-}> = ({ action, sources, hideStackFrames, fallbackLocation }) => {
+}> = ({ action, sources, hideStackFrames, rootDir, fallbackLocation }) => {
   const [lastAction, setLastAction] = React.useState<ActionTraceEvent | undefined>();
   const [selectedFrame, setSelectedFrame] = React.useState<number>(0);
 
@@ -41,7 +42,7 @@ export const SourceTab: React.FunctionComponent<{
     }
   }, [action, lastAction, setLastAction, setSelectedFrame]);
 
-  const { source, targetLine, highlight } = useAsyncMemo<{ source: SourceModel, targetLine: number, highlight: SourceHighlight[] }>(async () => {
+  const { source, highlight, targetLine, fileName } = useAsyncMemo<{ source: SourceModel, targetLine?: number, fileName?: string, highlight: SourceHighlight[] }>(async () => {
     const location = action?.stack?.[selectedFrame] || fallbackLocation;
     if (!location?.file)
       return { source: { errors: [], content: undefined }, targetLine: 0, highlight: [] };
@@ -54,6 +55,7 @@ export const SourceTab: React.FunctionComponent<{
     }
 
     const targetLine = location.line || 0;
+    const fileName = rootDir && location.file.startsWith(rootDir) ? location.file.substring(rootDir.length + 1) : location.file;
     const highlight: SourceHighlight[] = source.errors.map(e => ({ type: 'error', line: e.location.line, message: e.error!.message }));
     highlight.push({ line: targetLine, type: 'running' });
 
@@ -68,11 +70,14 @@ export const SourceTab: React.FunctionComponent<{
         source.content = `<Unable to read "${location.file}">`;
       }
     }
-    return { source, targetLine, highlight };
-  }, [action, selectedFrame, fallbackLocation], { source: { errors: [], content: 'Loading\u2026' }, targetLine: 0, highlight: [] });
+    return { source, highlight, targetLine, fileName };
+  }, [action, selectedFrame, rootDir, fallbackLocation], { source: { errors: [], content: 'Loading\u2026' }, highlight: [] });
 
   return <SplitView sidebarSize={200} orientation='horizontal' sidebarHidden={hideStackFrames}>
-    <CodeMirrorWrapper text={source.content || ''} language='javascript' highlight={highlight} revealLine={targetLine} readOnly={true} lineNumbers={true} />
+    <div className='vbox' data-testid='source-code'>
+      {fileName && <div className='source-tab-file-name'>{fileName}</div>}
+      <CodeMirrorWrapper text={source.content || ''} language='javascript' highlight={highlight} revealLine={targetLine} readOnly={true} lineNumbers={true} />
+    </div>
     <StackTraceView action={action} selectedFrame={selectedFrame} setSelectedFrame={setSelectedFrame} />
   </SplitView>;
 };
diff --git a/packages/trace-viewer/src/ui/watchMode.css b/packages/trace-viewer/src/ui/watchMode.css
index ed8cbc0e96..f94e490c5a 100644
--- a/packages/trace-viewer/src/ui/watchMode.css
+++ b/packages/trace-viewer/src/ui/watchMode.css
@@ -40,16 +40,9 @@
   overflow: hidden
 }
 
-.watch-mode-sidebar .toolbar {
-  min-height: 24px;
-}
-
-.watch-mode-sidebar .toolbar-button {
-  margin: 0;
-}
-
 .watch-mode .section-title {
   display: flex;
+  flex: auto;
   flex-direction: row;
   align-items: center;
   font-size: 11px;
@@ -58,6 +51,7 @@
   text-overflow: ellipsis;
   overflow: hidden;
   padding: 8px;
+  height: 30px;
 }
 
 .watch-mode-sidebar img {
@@ -68,20 +62,19 @@
 }
 
 .status-line {
-  flex: none;
+  flex: auto;
+  white-space: nowrap;
   line-height: 22px;
-  padding: 0 10px;
-  color: var(--vscode-statusBar-foreground);
-  background-color: var(--vscode-statusBar-background);
+  padding-left: 10px;
   display: flex;
   flex-direction: row;
   align-items: center;
+  height: 30px;
 }
 
 .status-line > div {
-  display: flex;
-  align-items: center;
-  margin: 0 5px;
+  overflow: hidden;
+  text-overflow: ellipsis;
 }
 
 .list-view-entry:not(.highlighted):not(.selected) .toolbar-button:not(.toggled) {
@@ -103,7 +96,6 @@
   flex: none;
   display: flex;
   flex-direction: column;
-  margin-top: 8px;
 }
 
 .filter-title,
@@ -120,7 +112,7 @@
 }
 
 .filter-summary {
-  line-height: 24px;
+  line-height: 21px;
   margin-top: 2px;
   margin-left: 20px;
 }
diff --git a/packages/trace-viewer/src/ui/watchMode.tsx b/packages/trace-viewer/src/ui/watchMode.tsx
index 5e3d7083e4..a3769c3648 100644
--- a/packages/trace-viewer/src/ui/watchMode.tsx
+++ b/packages/trace-viewer/src/ui/watchMode.tsx
@@ -22,7 +22,7 @@ import { TreeView } from '@web/components/treeView';
 import type { TreeState } from '@web/components/treeView';
 import { baseFullConfig, TeleReporterReceiver, TeleSuite } from '@testIsomorphic/teleReceiver';
 import type { TeleTestCase } from '@testIsomorphic/teleReceiver';
-import type { FullConfig, Suite, TestCase, TestResult, Location } from '../../../playwright-test/types/testReporter';
+import type { FullConfig, Suite, TestCase, Location } from '../../../playwright-test/types/testReporter';
 import { SplitView } from '@web/components/splitView';
 import { MultiTraceModel } from './modelUtil';
 import './watchMode.css';
@@ -36,7 +36,7 @@ import { toggleTheme } from '@web/theme';
 import { artifactsFolderName } from '@testIsomorphic/folders';
 import { settings } from '@web/uiUtils';
 
-let updateRootSuite: (config: FullConfig, rootSuite: Suite, progress: Progress) => void = () => {};
+let updateRootSuite: (config: FullConfig, rootSuite: Suite, progress: Progress | undefined) => void = () => {};
 let runWatchedTests = (fileName: string) => {};
 let xtermSize = { cols: 80, rows: 24 };
 
@@ -67,17 +67,17 @@ export const WatchModeView: React.FC<{}> = ({
   ]));
   const [projectFilters, setProjectFilters] = React.useState<Map<string, boolean>>(new Map());
   const [testModel, setTestModel] = React.useState<TestModel>({ config: undefined, rootSuite: undefined });
-  const [progress, setProgress] = React.useState<Progress>({ total: 0, passed: 0, failed: 0, skipped: 0 });
-  const [selectedTest, setSelectedTest] = React.useState<TestCase | undefined>(undefined);
+  const [progress, setProgress] = React.useState<Progress & { total: number } | undefined>();
+  const [selectedItem, setSelectedItem] = React.useState<{ location?: Location, testCase?: TestCase }>({});
   const [visibleTestIds, setVisibleTestIds] = React.useState<string[]>([]);
   const [isLoading, setIsLoading] = React.useState<boolean>(false);
-  const [runningState, setRunningState] = React.useState<{ testIds: Set<string>, itemSelectedByUser?: boolean }>();
+  const [runningState, setRunningState] = React.useState<{ testIds: Set<string>, itemSelectedByUser?: boolean } | undefined>();
 
   const inputRef = React.useRef<HTMLInputElement>(null);
 
   const reloadTests = () => {
     setIsLoading(true);
-    updateRootSuite(baseFullConfig, new TeleSuite('', 'root'), { total: 0, passed: 0, failed: 0, skipped: 0 });
+    updateRootSuite(baseFullConfig, new TeleSuite('', 'root'), undefined);
     refreshRootSuite(true).then(() => {
       setIsLoading(false);
     });
@@ -88,7 +88,7 @@ export const WatchModeView: React.FC<{}> = ({
     reloadTests();
   }, []);
 
-  updateRootSuite = (config: FullConfig, rootSuite: Suite, newProgress: Progress) => {
+  updateRootSuite = (config: FullConfig, rootSuite: Suite, newProgress: Progress | undefined) => {
     const selectedProjects = config.configFile ? settings.getObject<string[] | undefined>(config.configFile + ':projects', undefined) : undefined;
     for (const projectName of projectFilters.keys()) {
       if (!rootSuite.suites.find(s => s.title === projectName))
@@ -103,7 +103,10 @@ export const WatchModeView: React.FC<{}> = ({
 
     setTestModel({ config, rootSuite });
     setProjectFilters(new Map(projectFilters));
-    setProgress(newProgress);
+    if (runningState && newProgress)
+      setProgress({ ...newProgress, total: runningState.testIds.size });
+    else if (!newProgress)
+      setProgress(undefined);
   };
 
   const runTests = (testIds: string[]) => {
@@ -133,29 +136,27 @@ export const WatchModeView: React.FC<{}> = ({
   };
 
   const isRunningTest = !!runningState;
-  const result = selectedTest?.results[0];
-  const outputDir = selectedTest ? outputDirForTestCase(selectedTest) : undefined;
 
   return <div className='vbox watch-mode'>
     <SplitView sidebarSize={250} orientation='horizontal' sidebarIsFirst={true}>
       <div className='vbox'>
         <div className={'vbox' + (isShowingOutput ? '' : ' hidden')}>
           <Toolbar>
+            <div className='section-title' style={{ flex: 'none' }}>Output</div>
             <ToolbarButton icon='circle-slash' title='Clear output' onClick={() => xtermDataSource.clear()}></ToolbarButton>
             <div className='spacer'></div>
             <ToolbarButton icon='close' title='Close' onClick={() => setIsShowingOutput(false)}></ToolbarButton>
           </Toolbar>
-          <XtermWrapper source={xtermDataSource}></XtermWrapper>;
+          <XtermWrapper source={xtermDataSource}></XtermWrapper>
         </div>
         <div className={'vbox' + (isShowingOutput ? ' hidden' : '')}>
-          <TraceView outputDir={outputDir} testCase={selectedTest} result={result} />
+          <TraceView item={selectedItem} rootDir={testModel.config?.rootDir} />
         </div>
       </div>
       <div className='vbox watch-mode-sidebar'>
-        <Toolbar>
+        <Toolbar noShadow={true}>
           <img src='icon-32x32.png' />
           <div className='section-title'>Playwright</div>
-          <div className='spacer'></div>
           <ToolbarButton icon='color-mode' title='Toggle color mode' toggled={false} onClick={() => toggleTheme()} />
           <ToolbarButton icon='refresh' title='Reload' onClick={() => reloadTests()} disabled={isRunningTest || isLoading}></ToolbarButton>
           <ToolbarButton icon='terminal' title='Toggle output' toggled={isShowingOutput} onClick={() => { setIsShowingOutput(!isShowingOutput); }} />
@@ -169,9 +170,14 @@ export const WatchModeView: React.FC<{}> = ({
           setProjectFilters={setProjectFilters}
           testModel={testModel}
           runTests={() => runTests(visibleTestIds)} />
-        <Toolbar>
-          <div className='section-title'>Tests</div>
-          <div className='spacer'></div>
+        <Toolbar noMinHeight={true}>
+          {!isRunningTest && !progress && <div className='section-title'>Tests</div>}
+          {!isRunningTest && progress && <div data-testid='status-line' className='status-line'>
+            <div>{progress.passed}/{progress.total} passed ({(progress.passed / progress.total) * 100 | 0}%)</div>
+          </div>}
+          {isRunningTest && progress && <div data-testid='status-line' className='status-line'>
+            <div>Running {progress.passed}/{runningState.testIds.size} passed ({(progress.passed / runningState.testIds.size) * 100 | 0}%)</div>
+          </div>}
           <ToolbarButton icon='play' title='Run all' onClick={() => runTests(visibleTestIds)} disabled={isRunningTest || isLoading}></ToolbarButton>
           <ToolbarButton icon='debug-stop' title='Stop' onClick={() => sendMessageNoReply('stop')} disabled={!isRunningTest || isLoading}></ToolbarButton>
         </Toolbar>
@@ -182,19 +188,10 @@ export const WatchModeView: React.FC<{}> = ({
           testModel={testModel}
           runningState={runningState}
           runTests={runTests}
-          onTestSelected={setSelectedTest}
+          onItemSelected={setSelectedItem}
           setVisibleTestIds={setVisibleTestIds} />
       </div>
     </SplitView>
-    <div className='status-line'>
-      <div>Total: {progress.total}</div>
-      {isRunningTest && <div><span className='codicon codicon-loading'></span>{`Running ${visibleTestIds.length}\u2026`}</div>}
-      {isLoading && <div><span className='codicon codicon-loading'></span> {'Loading\u2026'}</div>}
-      {!isRunningTest && <div>Showing: {visibleTestIds.length}</div>}
-      <div>{progress.passed} passed</div>
-      <div>{progress.failed} failed</div>
-      <div>{progress.skipped} skipped</div>
-    </div>
   </div>;
 };
 
@@ -276,11 +273,11 @@ const TestList: React.FC<{
   runTests: (testIds: string[]) => void,
   runningState?: { testIds: Set<string>, itemSelectedByUser?: boolean },
   setVisibleTestIds: (testIds: string[]) => void,
-  onTestSelected: (test: TestCase | undefined) => void,
-}> = ({ statusFilters, projectFilters, filterText, testModel, runTests, runningState, onTestSelected, setVisibleTestIds }) => {
+  onItemSelected: (item: { testCase?: TestCase, location?: Location }) => void,
+}> = ({ statusFilters, projectFilters, filterText, testModel, runTests, runningState, onItemSelected, setVisibleTestIds }) => {
   const [treeState, setTreeState] = React.useState<TreeState>({ expandedItems: new Map() });
   const [selectedTreeItemId, setSelectedTreeItemId] = React.useState<string | undefined>();
-  const [watchedTreeIds] = React.useState<Set<string>>(new Set());
+  const [watchedTreeIds, innerSetWatchedTreeIds] = React.useState<{ value: Set<string> }>({ value: new Set() });
 
   const { rootItem, treeItemMap } = React.useMemo(() => {
     const rootItem = createTree(testModel.rootSuite, projectFilters);
@@ -323,14 +320,15 @@ const TestList: React.FC<{
 
   const { selectedTreeItem } = React.useMemo(() => {
     const selectedTreeItem = selectedTreeItemId ? treeItemMap.get(selectedTreeItemId) : undefined;
+    const location = selectedTreeItem?.location;
     let selectedTest: TestCase | undefined;
     if (selectedTreeItem?.kind === 'test')
       selectedTest = selectedTreeItem.test;
     else if (selectedTreeItem?.kind === 'case' && selectedTreeItem.tests.length === 1)
       selectedTest = selectedTreeItem.tests[0];
-    onTestSelected(selectedTest);
+    onItemSelected({ testCase: selectedTest, location });
     return { selectedTreeItem };
-  }, [onTestSelected, selectedTreeItemId, treeItemMap]);
+  }, [onItemSelected, selectedTreeItemId, treeItemMap]);
 
   const setWatchedTreeIds = (watchedTreeIds: Set<string>) => {
     const fileNames = new Set<string>();
@@ -339,6 +337,7 @@ const TestList: React.FC<{
       fileNames.add(fileNameForTreeItem(treeItem)!);
     }
     sendMessageNoReply('watch', { fileNames: [...fileNames] });
+    innerSetWatchedTreeIds({ value: watchedTreeIds });
   };
 
   const runTreeItem = (treeItem: TreeItem) => {
@@ -348,7 +347,7 @@ const TestList: React.FC<{
 
   runWatchedTests = (fileName: string) => {
     const testIds: string[] = [];
-    for (const treeId of watchedTreeIds) {
+    for (const treeId of watchedTreeIds.value) {
       const treeItem = treeItemMap.get(treeId)!;
       if (fileNameForTreeItem(treeItem) === fileName)
         testIds.push(...collectTestIds(treeItem));
@@ -367,12 +366,12 @@ const TestList: React.FC<{
         <ToolbarButton icon='play' title='Run' onClick={() => runTreeItem(treeItem)} disabled={!!runningState}></ToolbarButton>
         <ToolbarButton icon='go-to-file' title='Open in VS Code' onClick={() => sendMessageNoReply('open', { location: locationToOpen(treeItem) })}></ToolbarButton>
         <ToolbarButton icon='eye' title='Watch' onClick={() => {
-          if (watchedTreeIds.has(treeItem.id))
-            watchedTreeIds.delete(treeItem.id);
+          if (watchedTreeIds.value.has(treeItem.id))
+            watchedTreeIds.value.delete(treeItem.id);
           else
-            watchedTreeIds.add(treeItem.id);
-          setWatchedTreeIds(watchedTreeIds);
-        }} toggled={watchedTreeIds.has(treeItem.id)}></ToolbarButton>
+            watchedTreeIds.value.add(treeItem.id);
+          setWatchedTreeIds(watchedTreeIds.value);
+        }} toggled={watchedTreeIds.value.has(treeItem.id)}></ToolbarButton>
       </div>;
     }}
     icon={treeItem => {
@@ -398,14 +397,19 @@ const TestList: React.FC<{
 };
 
 const TraceView: React.FC<{
-  outputDir: string | undefined,
-  testCase: TestCase | undefined,
-  result: TestResult | undefined,
-}> = ({ outputDir, testCase, result }) => {
+  item: { location?: Location, testCase?: TestCase },
+  rootDir?: string,
+}> = ({ item, rootDir }) => {
   const [model, setModel] = React.useState<MultiTraceModel | undefined>();
   const [counter, setCounter] = React.useState(0);
   const pollTimer = React.useRef<NodeJS.Timeout | null>(null);
 
+  const { outputDir, result } = React.useMemo(() => {
+    const outputDir = item.testCase ? outputDirForTestCase(item.testCase) : undefined;
+    const result = item.testCase?.results[0];
+    return { outputDir, result };
+  }, [item]);
+
   React.useEffect(() => {
     if (pollTimer.current)
       clearTimeout(pollTimer.current);
@@ -427,7 +431,7 @@ const TraceView: React.FC<{
       return;
     }
 
-    const traceLocation = `${outputDir}/${artifactsFolderName(result!.workerIndex)}/traces/${testCase?.id}.json`;
+    const traceLocation = `${outputDir}/${artifactsFolderName(result!.workerIndex)}/traces/${item.testCase?.id}.json`;
     // Start polling running test.
     pollTimer.current = setTimeout(async () => {
       try {
@@ -443,9 +447,16 @@ const TraceView: React.FC<{
       if (pollTimer.current)
         clearTimeout(pollTimer.current);
     };
-  }, [result, outputDir, testCase, setModel, counter, setCounter]);
+  }, [result, outputDir, item, setModel, counter, setCounter]);
 
-  return <Workbench key='workbench' model={model} hideTimelineBars={true} hideStackFrames={true} showSourcesFirst={true} defaultSourceLocation={testCase?.location} />;
+  return <Workbench
+    key='workbench'
+    model={model}
+    hideTimelineBars={true}
+    hideStackFrames={true}
+    showSourcesFirst={true}
+    rootDir={rootDir}
+    defaultSourceLocation={item.location} />;
 };
 
 declare global {
@@ -478,7 +489,6 @@ const refreshRootSuite = (eraseResults: boolean): Promise<void> => {
 
   let rootSuite: Suite;
   const progress: Progress = {
-    total: 0,
     passed: 0,
     failed: 0,
     skipped: 0,
@@ -489,7 +499,6 @@ const refreshRootSuite = (eraseResults: boolean): Promise<void> => {
       if (!rootSuite)
         rootSuite = suite;
       config = c;
-      progress.total = suite.allTests().length;
       progress.passed = 0;
       progress.failed = 0;
       progress.skipped = 0;
@@ -587,7 +596,6 @@ const collectTestIds = (treeItem?: TreeItem): string[] => {
 };
 
 type Progress = {
-  total: number;
   passed: number;
   failed: number;
   skipped: number;
diff --git a/packages/trace-viewer/src/ui/workbench.tsx b/packages/trace-viewer/src/ui/workbench.tsx
index f5caccf209..0c5d754ca6 100644
--- a/packages/trace-viewer/src/ui/workbench.tsx
+++ b/packages/trace-viewer/src/ui/workbench.tsx
@@ -37,14 +37,17 @@ export const Workbench: React.FunctionComponent<{
   hideTimelineBars?: boolean,
   hideStackFrames?: boolean,
   showSourcesFirst?: boolean,
+  rootDir?: string,
   defaultSourceLocation?: Location,
-}> = ({ model, hideTimelineBars, hideStackFrames, showSourcesFirst, defaultSourceLocation }) => {
+}> = ({ model, hideTimelineBars, hideStackFrames, showSourcesFirst, rootDir, defaultSourceLocation }) => {
   const [selectedAction, setSelectedAction] = React.useState<ActionTraceEvent | undefined>(undefined);
   const [highlightedAction, setHighlightedAction] = React.useState<ActionTraceEvent | undefined>();
   const [selectedNavigatorTab, setSelectedNavigatorTab] = React.useState<string>('actions');
   const [selectedPropertiesTab, setSelectedPropertiesTab] = React.useState<string>(showSourcesFirst ? 'source' : 'call');
   const activeAction = model ? highlightedAction || selectedAction : undefined;
 
+  const sources = React.useMemo(() => model?.sources || new Map(), [model]);
+
   React.useEffect(() => {
     if (selectedAction && model?.actions.includes(selectedAction))
       return;
@@ -68,7 +71,12 @@ export const Workbench: React.FunctionComponent<{
   const sourceTab: TabbedPaneTabModel = {
     id: 'source',
     title: 'Source',
-    render: () => <SourceTab action={activeAction} sources={model?.sources || new Map()} hideStackFrames={hideStackFrames} fallbackLocation={defaultSourceLocation}/>
+    render: () => <SourceTab
+      action={activeAction}
+      sources={sources}
+      hideStackFrames={hideStackFrames}
+      rootDir={rootDir}
+      fallbackLocation={defaultSourceLocation} />
   };
   const consoleTab: TabbedPaneTabModel = {
     id: 'console',
diff --git a/packages/web/src/components/codeMirrorWrapper.css b/packages/web/src/components/codeMirrorWrapper.css
index a6af4f88b3..2adf030c08 100644
--- a/packages/web/src/components/codeMirrorWrapper.css
+++ b/packages/web/src/components/codeMirrorWrapper.css
@@ -109,7 +109,7 @@ body.dark-mode .CodeMirror span.cm-type {
 }
 
 .CodeMirror-cursor {
-  border-left: 1px solid #bebebe;
+  border-left: 1px solid var(--vscode-editor-foreground) !important;
 }
 
 .CodeMirror div.CodeMirror-selected {
diff --git a/packages/web/src/components/codeMirrorWrapper.tsx b/packages/web/src/components/codeMirrorWrapper.tsx
index c333e6ee0e..e51910f587 100644
--- a/packages/web/src/components/codeMirrorWrapper.tsx
+++ b/packages/web/src/components/codeMirrorWrapper.tsx
@@ -149,9 +149,9 @@ export const CodeMirrorWrapper: React.FC<SourceProps> = ({
       codemirrorRef.current!.highlight = highlight;
       codemirrorRef.current!.widgets = widgets;
     }
-
-    if (revealLine && codemirrorRef.current!.cm.lineCount() >= revealLine)
-      codemirror.scrollIntoView({ line: revealLine - 1, ch: 0 }, 50);
+    // Line-less locations have line = 0, but they mean to reveal the file.
+    if (typeof revealLine === 'number' && codemirrorRef.current!.cm.lineCount() >= revealLine)
+      codemirror.scrollIntoView({ line: Math.max(0, revealLine - 1), ch: 0 }, 50);
   }, [codemirror, text, highlight, revealLine, focusOnChange, onChange]);
 
   return <div className='cm-wrapper' ref={codemirrorElement}></div>;
diff --git a/packages/web/src/components/tabbedPane.tsx b/packages/web/src/components/tabbedPane.tsx
index a6acc36977..61474f0ee7 100644
--- a/packages/web/src/components/tabbedPane.tsx
+++ b/packages/web/src/components/tabbedPane.tsx
@@ -53,7 +53,7 @@ export const TabbedPane: React.FunctionComponent<{
           if (tab.component)
             return <div key={tab.id} className='tab-content' style={{ display: selectedTab === tab.id ? 'inherit' : 'none' }}>{tab.component}</div>;
           if (selectedTab === tab.id)
-            return <div key={tab.id} className='tab-content'>{tab.component || tab.render!()}</div>;
+            return <div key={tab.id} className='tab-content'>{tab.render!()}</div>;
         })
       }
     </div>
diff --git a/packages/web/src/components/toolbar.css b/packages/web/src/components/toolbar.css
index f8d4b97471..1aea35e2e7 100644
--- a/packages/web/src/components/toolbar.css
+++ b/packages/web/src/components/toolbar.css
@@ -15,19 +15,35 @@
 */
 
 .toolbar {
+  position: relative;
   display: flex;
-  box-shadow: var(--box-shadow);
   background-color: var(--vscode-sideBar-background);
   color: var(--vscode-sideBarTitle-foreground);
   min-height: 35px;
   align-items: center;
   flex: none;
-  z-index: 2;
+  padding-right: 2px;
 }
 
-.toolbar-linewrap {
+.toolbar:after {
+  content: '';
   display: block;
-  flex: auto;
+  position: absolute;
+  pointer-events: none;
+  top: 0;
+  bottom: 0;
+  left: -2px;
+  right: -2px;
+  box-shadow: var(--vscode-scrollbar-shadow) 0 6px 6px -6px;
+  z-index: 100;
+}
+
+.toolbar.no-shadow:after {
+  box-shadow: none;
+}
+
+.toolbar.no-min-height {
+  min-height: 0;
 }
 
 .toolbar input {
diff --git a/packages/web/src/components/toolbar.tsx b/packages/web/src/components/toolbar.tsx
index ddfede6176..5e11de75f7 100644
--- a/packages/web/src/components/toolbar.tsx
+++ b/packages/web/src/components/toolbar.tsx
@@ -17,11 +17,15 @@
 import './toolbar.css';
 import * as React from 'react';
 
-export interface ToolbarProps {
-}
+type ToolbarProps = {
+  noShadow?: boolean;
+  noMinHeight?: boolean;
+};
 
 export const Toolbar: React.FC<React.PropsWithChildren<ToolbarProps>> = ({
-  children
+  noShadow,
+  children,
+  noMinHeight
 }) => {
-  return <div className='toolbar'>{children}</div>;
+  return <div className={'toolbar' + (noShadow ? ' no-shadow' : '') + (noMinHeight ? ' no-min-height' : '')}>{children}</div>;
 };
diff --git a/packages/web/src/components/toolbarButton.css b/packages/web/src/components/toolbarButton.css
index 9686b2f22f..53c3abc672 100644
--- a/packages/web/src/components/toolbarButton.css
+++ b/packages/web/src/components/toolbarButton.css
@@ -21,7 +21,7 @@
   color: var(--vscode-sideBarTitle-foreground);
   background: transparent;
   padding: 4px;
-  margin: 0 4px;
+  margin: 0 2px;
   cursor: pointer;
   display: inline-flex;
   align-items: center;
@@ -43,3 +43,7 @@
 .toolbar-button.toggled {
   color: var(--vscode-notificationLink-foreground);
 }
+
+.toolbar-button.toggled .codicon {
+  font-weight: bold;
+}
diff --git a/packages/web/src/components/toolbarButton.tsx b/packages/web/src/components/toolbarButton.tsx
index 9242b734a9..7a0d6d5ca9 100644
--- a/packages/web/src/components/toolbarButton.tsx
+++ b/packages/web/src/components/toolbarButton.tsx
@@ -41,6 +41,7 @@ export const ToolbarButton: React.FC<React.PropsWithChildren<ToolbarButtonProps>
     className={className}
     onMouseDown={preventDefault}
     onClick={onClick}
+    onDoubleClick={preventDefault}
     title={title}
     disabled={!!disabled}>
     {icon && <span className={`codicon codicon-${icon}`} style={children ? { marginRight: 5 } : {}}></span>}
@@ -48,4 +49,7 @@ export const ToolbarButton: React.FC<React.PropsWithChildren<ToolbarButtonProps>
   </button>;
 };
 
-const preventDefault = (e: any) => e.preventDefault();
+const preventDefault = (e: any) => {
+  e.stopPropagation();
+  e.preventDefault();
+};
diff --git a/packages/web/src/components/xtermWrapper.tsx b/packages/web/src/components/xtermWrapper.tsx
index edbbb90018..6c60e7a93b 100644
--- a/packages/web/src/components/xtermWrapper.tsx
+++ b/packages/web/src/components/xtermWrapper.tsx
@@ -17,8 +17,9 @@
 import * as React from 'react';
 import './xtermWrapper.css';
 import type { ITheme, Terminal } from 'xterm';
+import type { FitAddon } from 'xterm-addon-fit';
 import type { XtermModule } from './xtermModule';
-import { isDarkTheme } from '@web/theme';
+import { currentTheme, addThemeListener, removeThemeListener } from '@web/theme';
 
 export type XtermDataSource = {
   pending: (string | Uint8Array)[];
@@ -28,12 +29,23 @@ export type XtermDataSource = {
 };
 
 export const XtermWrapper: React.FC<{ source: XtermDataSource }> = ({
-  source
+  source,
 }) => {
   const xtermElement = React.useRef<HTMLDivElement>(null);
+  const [theme, setTheme] = React.useState(currentTheme());
   const [modulePromise] = React.useState<Promise<XtermModule>>(import('./xtermModule').then(m => m.default));
-  const terminal = React.useRef<Terminal | null>(null);
+  const terminal = React.useRef<{ terminal: Terminal, fitAddon: FitAddon }| null>(null);
+
   React.useEffect(() => {
+    addThemeListener(setTheme);
+    return () => removeThemeListener(setTheme);
+  }, []);
+
+  React.useEffect(() => {
+    const oldSourceWrite = source.write;
+    const oldSourceClear = source.clear;
+    let resizeObserver: ResizeObserver | undefined;
+
     (async () => {
       // Always load the module first.
       const { Terminal, FitAddon } = await modulePromise;
@@ -41,7 +53,7 @@ export const XtermWrapper: React.FC<{ source: XtermDataSource }> = ({
       if (!element)
         return;
 
-      if (terminal.current)
+      if (terminal.current && terminal)
         return;
 
       const newTerminal = new Terminal({
@@ -49,7 +61,7 @@ export const XtermWrapper: React.FC<{ source: XtermDataSource }> = ({
         fontSize: 13,
         scrollback: 10000,
         fontFamily: 'var(--vscode-editor-font-family)',
-        theme: isDarkTheme() ? darkTheme : lightTheme
+        theme: theme === 'dark-mode' ? darkTheme : lightTheme
       });
 
       const fitAddon = new FitAddon();
@@ -66,16 +78,30 @@ export const XtermWrapper: React.FC<{ source: XtermDataSource }> = ({
       };
       newTerminal.open(element);
       fitAddon.fit();
-      terminal.current = newTerminal;
-      const resizeObserver = new ResizeObserver(() => {
-        source.resize(newTerminal.cols, newTerminal.rows);
-        fitAddon.fit();
+      terminal.current = { terminal: newTerminal, fitAddon };
+      resizeObserver = new ResizeObserver(() => {
+        // Fit reads data from the terminal itself, which updates lazily, probably on some timer
+        // or mutation observer. Work around it.
+        setTimeout(() => {
+          fitAddon.fit();
+          source.resize(newTerminal.cols, newTerminal.rows);
+        }, 100);
       });
       resizeObserver.observe(element);
     })();
-  }, [modulePromise, terminal, xtermElement, source]);
-  return <div className='xterm-wrapper' style={{ flex: 'auto' }} ref={xtermElement}>
-  </div>;
+    return () => {
+      source.clear = oldSourceClear;
+      source.write = oldSourceWrite;
+      resizeObserver?.disconnect();
+    };
+  }, [modulePromise, terminal, xtermElement, source, theme]);
+
+  React.useEffect(() => {
+    if (terminal.current)
+      terminal.current.terminal.options.theme = theme === 'dark-mode' ? darkTheme : lightTheme;
+  }, [theme]);
+
+  return <div className='xterm-wrapper' style={{ flex: 'auto' }} ref={xtermElement}></div>;
 };
 
 const lightTheme: ITheme = {
diff --git a/packages/web/src/theme.ts b/packages/web/src/theme.ts
index cdafcb7bc6..44f663f9e6 100644
--- a/packages/web/src/theme.ts
+++ b/packages/web/src/theme.ts
@@ -34,9 +34,12 @@ export function applyTheme() {
     document.body.classList.add('dark-mode');
 }
 
+type Theme = 'dark-mode' | 'light-mode';
+
+const listeners = new Set<(theme: Theme) => void>();
 export function toggleTheme() {
   const oldTheme = settings.getString('theme', 'light-mode');
-  let newTheme: string;
+  let newTheme: Theme;
   if (oldTheme === 'dark-mode')
     newTheme = 'light-mode';
   else
@@ -46,8 +49,18 @@ export function toggleTheme() {
     document.body.classList.remove(oldTheme);
   document.body.classList.add(newTheme);
   settings.setString('theme', newTheme);
+  for (const listener of listeners)
+    listener(newTheme);
 }
 
-export function isDarkTheme() {
-  return document.body.classList.contains('dark-mode');
+export function addThemeListener(listener: (theme: 'light-mode' | 'dark-mode') => void) {
+  listeners.add(listener);
+}
+
+export function removeThemeListener(listener: (theme: Theme) => void) {
+  listeners.delete(listener);
+}
+
+export function currentTheme(): Theme {
+  return document.body.classList.contains('dark-mode') ? 'dark-mode' : 'light-mode';
 }
diff --git a/tests/playwright-test/ui-mode-test-run.spec.ts b/tests/playwright-test/ui-mode-test-run.spec.ts
index a425fbf48c..aab0fddc38 100644
--- a/tests/playwright-test/ui-mode-test-run.spec.ts
+++ b/tests/playwright-test/ui-mode-test-run.spec.ts
@@ -59,6 +59,27 @@ test('should run visible', async ({ runUITest }) => {
         ✅ passes
         ⊘ skipped
   `);
+
+  await expect(page.getByTestId('status-line')).toHaveText('4/8 passed (50%)');
+});
+
+test('should show running progress', async ({ runUITest }) => {
+  const page = await runUITest({
+    'a.test.ts': `
+      import { test, expect } from '@playwright/test';
+      test('test 1', async () => {});
+      test('test 2', async () => new Promise(() => {}));
+      test('test 3', async () => {});
+      test('test 4', async () => {});
+    `,
+  });
+
+  await page.getByTitle('Run all').click();
+  await expect(page.getByTestId('status-line')).toHaveText('Running 1/4 passed (25%)');
+  await page.getByTitle('Stop').click();
+  await expect(page.getByTestId('status-line')).toHaveText('1/4 passed (25%)');
+  await page.getByTitle('Reload').click();
+  await expect(page.getByTestId('status-line')).toBeHidden();
 });
 
 test('should run on hover', async ({ runUITest }) => {
diff --git a/tests/playwright-test/ui-mode-test-source.spec.ts b/tests/playwright-test/ui-mode-test-source.spec.ts
index 2772f7eb04..3ddf70371e 100644
--- a/tests/playwright-test/ui-mode-test-source.spec.ts
+++ b/tests/playwright-test/ui-mode-test-source.spec.ts
@@ -41,16 +41,25 @@ test('should show selected test in sources', async ({ runUITest }) => {
   `);
 
   await page.getByTestId('test-tree').getByText('first').click();
+  await expect(
+      page.getByTestId('source-code').locator('.source-tab-file-name')
+  ).toHaveText('a.test.ts');
   await expect(
       page.locator('.CodeMirror .source-line-running'),
   ).toHaveText(`3    test('first', () => {});`);
 
   await page.getByTestId('test-tree').getByText('second').click();
+  await expect(
+      page.getByTestId('source-code').locator('.source-tab-file-name')
+  ).toHaveText('a.test.ts');
   await expect(
       page.locator('.CodeMirror .source-line-running'),
   ).toHaveText(`4    test('second', () => {});`);
 
   await page.getByTestId('test-tree').getByText('third').click();
+  await expect(
+      page.getByTestId('source-code').locator('.source-tab-file-name')
+  ).toHaveText('b.test.ts');
   await expect(
       page.locator('.CodeMirror .source-line-running'),
   ).toHaveText(`3    test('third', () => {});`);
diff --git a/tests/playwright-test/ui-mode-test-tree.spec.ts b/tests/playwright-test/ui-mode-test-tree.spec.ts
index c85d5cbf9b..a57c8d035d 100644
--- a/tests/playwright-test/ui-mode-test-tree.spec.ts
+++ b/tests/playwright-test/ui-mode-test-tree.spec.ts
@@ -85,7 +85,7 @@ test('should traverse up/down', async ({ runUITest }) => {
 test('should expand / collapse groups', async ({ runUITest }) => {
   const page = await runUITest(basicTestTree);
 
-  await page.getByText('suite').click();
+  await page.getByTestId('test-tree').getByText('suite').click();
   await page.keyboard.press('ArrowRight');
   await expect.poll(dumpTestTree(page), { timeout: 15000 }).toContain(`
     ▼ ◯ a.test.ts
@@ -104,7 +104,7 @@ test('should expand / collapse groups', async ({ runUITest }) => {
       ► ◯ suite <=
   `);
 
-  await page.getByText('passes').first().click();
+  await page.getByTestId('test-tree').getByText('passes').first().click();
   await page.keyboard.press('ArrowLeft');
   await expect.poll(dumpTestTree(page), { timeout: 15000 }).toContain(`
     ▼ ◯ a.test.ts <=
diff --git a/tests/playwright-test/ui-mode-test-watch.spec.ts b/tests/playwright-test/ui-mode-test-watch.spec.ts
index 4ea90196a6..8b5d48c782 100644
--- a/tests/playwright-test/ui-mode-test-watch.spec.ts
+++ b/tests/playwright-test/ui-mode-test-watch.spec.ts
@@ -29,6 +29,12 @@ test('should watch files', async ({ runUITest, writeFiles }) => {
 
   await page.getByText('fails').click();
   await page.getByRole('listitem').filter({ hasText: 'fails' }).getByTitle('Watch').click();
+  await expect.poll(dumpTestTree(page), { timeout: 15000 }).toBe(`
+    ▼ ◯ a.test.ts
+        ◯ passes
+        ◯ fails 👁 <=
+  `);
+
   await page.getByRole('listitem').filter({ hasText: 'fails' }).getByTitle('Run').click();
 
   await expect.poll(dumpTestTree(page), { timeout: 15000 }).toBe(`