diff --git a/packages/playwright-test/src/transform.ts b/packages/playwright-test/src/transform.ts
index f9d48186e7..056bb5bd2c 100644
--- a/packages/playwright-test/src/transform.ts
+++ b/packages/playwright-test/src/transform.ts
@@ -89,9 +89,8 @@ export function transformHook(code: string, filename: string, tsconfig: TsConfig
         relative = relative.replace(/\//g, path.sep);
         const result = path.resolve(tsconfig.baseUrl || '', relative);
         for (const extension of extensions) {
-          // TODO: We can't cover this one with the hash!
           if (fs.existsSync(result + extension))
-            return result;
+            return result + extension;
         }
       }
       return name;
diff --git a/tests/playwright-test/resolver.spec.ts b/tests/playwright-test/resolver.spec.ts
index fc09a7ed06..ef2b508070 100644
--- a/tests/playwright-test/resolver.spec.ts
+++ b/tests/playwright-test/resolver.spec.ts
@@ -135,6 +135,7 @@ test('should respect baseurl w/o paths', async ({ runInlineTest }) => {
     `,
   });
 
+  expect(result.output).not.toContain('Could not');
   expect(result.passed).toBe(1);
   expect(result.exitCode).toBe(0);
 });