diff --git a/packages/playwright-test/src/util.ts b/packages/playwright-test/src/util.ts
index 11da8cc48b..5f7a33cf00 100644
--- a/packages/playwright-test/src/util.ts
+++ b/packages/playwright-test/src/util.ts
@@ -20,7 +20,7 @@ import url from 'url';
 import type { TestError, Location } from './types';
 import { default as minimatch } from 'minimatch';
 import debug from 'debug';
-import { isRegExp } from 'playwright-core/lib/utils/utils';
+import { calculateSha1, isRegExp } from 'playwright-core/lib/utils/utils';
 
 export function serializeError(error: Error | any): TestError {
   if (error instanceof Error) {
@@ -83,7 +83,7 @@ export function createFileMatcher(patterns: string | RegExp | (string | RegExp)[
   };
 }
 
-export function createTitleMatcher(patterns:  RegExp | RegExp[]): Matcher {
+export function createTitleMatcher(patterns: RegExp | RegExp[]): Matcher {
   const reList = Array.isArray(patterns) ? patterns : [patterns];
   return (value: string) => {
     for (const re of reList) {
@@ -144,6 +144,16 @@ export function sanitizeForFilePath(s: string) {
   return s.replace(/[\x00-\x2C\x2E-\x2F\x3A-\x40\x5B-\x60\x7B-\x7F]+/g, '-');
 }
 
+export function trimLongString(s: string, length = 100) {
+  if (s.length <= length)
+    return s;
+  const hash = calculateSha1(s);
+  const middle = `-${hash.substring(0, 5)}-`;
+  const start = Math.floor((length - middle.length) / 2);
+  const end = length - middle.length - start;
+  return s.substring(0, start) + middle + s.slice(-end);
+}
+
 export function addSuffixToFilePath(filePath: string, suffix: string, customExtension?: string, sanitize = false): string {
   const dirname = path.dirname(filePath);
   const ext = path.extname(filePath);
diff --git a/packages/playwright-test/src/workerRunner.ts b/packages/playwright-test/src/workerRunner.ts
index fe93cf4a1d..f4e80505ff 100644
--- a/packages/playwright-test/src/workerRunner.ts
+++ b/packages/playwright-test/src/workerRunner.ts
@@ -21,7 +21,7 @@ import * as mime from 'mime';
 import util from 'util';
 import colors from 'colors/safe';
 import { EventEmitter } from 'events';
-import { monotonicTime, serializeError, sanitizeForFilePath, getContainedPath, addSuffixToFilePath, prependToTestError } from './util';
+import { monotonicTime, serializeError, sanitizeForFilePath, getContainedPath, addSuffixToFilePath, prependToTestError, trimLongString } from './util';
 import { TestBeginPayload, TestEndPayload, RunPayload, TestEntry, DonePayload, WorkerInitParams, StepBeginPayload, StepEndPayload } from './ipc';
 import { setCurrentTestInfo } from './globals';
 import { Loader } from './loader';
@@ -232,7 +232,8 @@ export class WorkerRunner extends EventEmitter {
       const relativeTestFilePath = path.relative(this._project.config.testDir, test._requireFile.replace(/\.(spec|test)\.(js|ts|mjs)$/, ''));
       const sanitizedRelativePath = relativeTestFilePath.replace(process.platform === 'win32' ? new RegExp('\\\\', 'g') : new RegExp('/', 'g'), '-');
       const fullTitleWithoutSpec = test.titlePath().slice(1).join(' ') + (test._type === 'test' ? '' : '-worker' + this._params.workerIndex);
-      let testOutputDir = sanitizedRelativePath + '-' + sanitizeForFilePath(fullTitleWithoutSpec);
+
+      let testOutputDir = sanitizedRelativePath + '-' + sanitizeForFilePath(trimLongString(fullTitleWithoutSpec));
       if (this._uniqueProjectNamePathSegment)
         testOutputDir += '-' + this._uniqueProjectNamePathSegment;
       if (retry)
diff --git a/tests/playwright-test/test-output-dir.spec.ts b/tests/playwright-test/test-output-dir.spec.ts
index 393f67773f..3b533b007b 100644
--- a/tests/playwright-test/test-output-dir.spec.ts
+++ b/tests/playwright-test/test-output-dir.spec.ts
@@ -429,6 +429,21 @@ test('should allow nonAscii characters in the output dir', async ({ runInlineTes
   expect(outputDir).toBe(path.join(testInfo.outputDir, 'test-results', 'my-test-こんにちは世界'));
 });
 
+test('should allow shorten long output dirs characters in the output dir', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'my-test.spec.js': `
+      const { test } = pwt;
+      test.describe('this is a really long description that would be too long for a file path', () => {
+        test('and this is an even longer test name that just keeps going and going and we should shorten it', async ({}, testInfo) => {
+          console.log('\\n%%' + testInfo.outputDir);
+        });
+      });
+    `,
+  });
+  const outputDir = result.output.split('\n').filter(x => x.startsWith('%%'))[0].slice('%%'.length);
+  expect(outputDir).toBe(path.join(testInfo.outputDir, 'test-results', 'my-test-this-is-a-really-long-description-that-would-b-6d724--keeps-going-and-going-and-we-should-shorten-it'));
+});
+
 test('should not mangle double dashes', async ({ runInlineTest }, testInfo) => {
   const result = await runInlineTest({
     'my--file.spec.js': `