diff --git a/packages/playwright-core/src/client/browserType.ts b/packages/playwright-core/src/client/browserType.ts
index 789203cc00..1932d6e2d8 100644
--- a/packages/playwright-core/src/client/browserType.ts
+++ b/packages/playwright-core/src/client/browserType.ts
@@ -67,7 +67,6 @@ export class BrowserType extends ChannelOwner<channels.BrowserTypeChannel> imple
     options = { ...this._playwright._defaultLaunchOptions, ...options };
     const launchOptions: channels.BrowserTypeLaunchParams = {
       ...options,
-      tracesDir: options.tracesDir ?? this._playwright._defaultTracesDir,
       ignoreDefaultArgs: Array.isArray(options.ignoreDefaultArgs) ? options.ignoreDefaultArgs : undefined,
       ignoreAllDefaultArgs: !!options.ignoreDefaultArgs && !Array.isArray(options.ignoreDefaultArgs),
       env: options.env ? envObjectToArray(options.env) : undefined,
diff --git a/packages/playwright-core/src/client/fetch.ts b/packages/playwright-core/src/client/fetch.ts
index 3d49b72b8d..121bba4d9a 100644
--- a/packages/playwright-core/src/client/fetch.ts
+++ b/packages/playwright-core/src/client/fetch.ts
@@ -74,12 +74,12 @@ export class APIRequest implements api.APIRequest {
       ...options,
       extraHTTPHeaders: options.extraHTTPHeaders ? headersObjectToArray(options.extraHTTPHeaders) : undefined,
       storageState,
-      tracesDir: this._playwright._defaultTracesDir,
+      tracesDir: this._playwright._defaultLaunchOptions?.tracesDir, // We do not expose tracesDir in the API, so do not allow options to accidentally override it.
       clientCertificates: await toClientCertificatesProtocol(options.clientCertificates),
     })).request);
     this._contexts.add(context);
     context._request = this;
-    context._tracing._tracesDir = this._playwright._defaultTracesDir;
+    context._tracing._tracesDir = this._playwright._defaultLaunchOptions?.tracesDir;
     await context._instrumentation.runAfterCreateRequestContext(context);
     return context;
   }
diff --git a/packages/playwright-core/src/client/playwright.ts b/packages/playwright-core/src/client/playwright.ts
index 921de3a7c6..078e31259d 100644
--- a/packages/playwright-core/src/client/playwright.ts
+++ b/packages/playwright-core/src/client/playwright.ts
@@ -42,7 +42,6 @@ export class Playwright extends ChannelOwner<channels.PlaywrightChannel> {
   _defaultContextOptions?: BrowserContextOptions;
   _defaultContextTimeout?: number;
   _defaultContextNavigationTimeout?: number;
-  _defaultTracesDir?: string;
 
   constructor(parent: ChannelOwner, type: string, guid: string, initializer: channels.PlaywrightInitializer) {
     super(parent, type, guid, initializer);
diff --git a/packages/playwright/src/index.ts b/packages/playwright/src/index.ts
index 1a2e4cbf93..f3e11ddfaf 100644
--- a/packages/playwright/src/index.ts
+++ b/packages/playwright/src/index.ts
@@ -83,11 +83,11 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
       options.headless = headless;
     if (channel !== undefined)
       options.channel = channel;
-    playwright._defaultTracesDir = tracing().tracesDir();
+
     playwright._defaultLaunchOptions = options;
+    playwright._defaultLaunchOptions.tracesDir = tracing().tracesDir();
     await use(options);
     playwright._defaultLaunchOptions = undefined;
-    playwright._defaultTracesDir = undefined;
   }, { scope: 'worker', auto: true, box: true }],
 
   browser: [async ({ playwright, browserName, _browserOptions, connectOptions, _reuseContext }, use, testInfo) => {
@@ -234,12 +234,10 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
     playwright._defaultContextOptions = _combinedContextOptions;
     playwright._defaultContextTimeout = actionTimeout || 0;
     playwright._defaultContextNavigationTimeout = navigationTimeout || 0;
-    playwright._defaultTracesDir = tracing().tracesDir();
     await use();
     playwright._defaultContextOptions = undefined;
     playwright._defaultContextTimeout = undefined;
     playwright._defaultContextNavigationTimeout = undefined;
-    playwright._defaultTracesDir = undefined;
   }, { auto: 'all-hooks-included',  title: 'context configuration', box: true } as any],
 
   _setupArtifacts: [async ({ playwright, screenshot }, use, testInfo) => {