diff --git a/packages/playwright/src/program.ts b/packages/playwright/src/program.ts
index 975a2f894a..4b5bea19d3 100644
--- a/packages/playwright/src/program.ts
+++ b/packages/playwright/src/program.ts
@@ -197,6 +197,8 @@ async function runTests(args: string[], opts: { [key: string]: any }) {
         }
     );
     await stopProfiling('runner');
+    if (status === 'restarted')
+      return;
     const exitCode = status === 'interrupted' ? 130 : (status === 'passed' ? 0 : 1);
     gracefullyProcessExitDoNotHang(exitCode);
     return;
diff --git a/packages/playwright/src/runner/watchMode.ts b/packages/playwright/src/runner/watchMode.ts
index eecfbe5fc2..23edfd8d02 100644
--- a/packages/playwright/src/runner/watchMode.ts
+++ b/packages/playwright/src/runner/watchMode.ts
@@ -27,6 +27,7 @@ import { TestServerDispatcher } from './testServer';
 import { EventEmitter } from 'stream';
 import { type TestServerTransport, TestServerConnection } from '../isomorphic/testServerConnection';
 import { TeleSuiteUpdater } from '../isomorphic/teleSuiteUpdater';
+import { restartWithExperimentalTsEsm } from '../common/configLoader';
 
 class InMemoryTransport extends EventEmitter implements TestServerTransport {
   public readonly _send: (data: string) => void;
@@ -67,7 +68,10 @@ interface WatchModeOptions {
   grep?: string;
 }
 
-export async function runWatchModeLoop(configLocation: ConfigLocation, initialOptions: WatchModeOptions): Promise<FullResult['status']> {
+export async function runWatchModeLoop(configLocation: ConfigLocation, initialOptions: WatchModeOptions): Promise<FullResult['status'] | 'restarted'> {
+  if (restartWithExperimentalTsEsm(undefined, true))
+    return 'restarted';
+
   const options: WatchModeOptions = { ...initialOptions };
 
   const testServerDispatcher = new TestServerDispatcher(configLocation);