diff --git a/packages/playwright/src/reporters/base.ts b/packages/playwright/src/reporters/base.ts
index fb0930c545..9c47f68016 100644
--- a/packages/playwright/src/reporters/base.ts
+++ b/packages/playwright/src/reporters/base.ts
@@ -490,30 +490,75 @@ export function stripAnsiEscapes(str: string): string {
 }
 
 // Leaves enough space for the "prefix" to also fit.
-function fitToWidth(line: string, width: number, prefix?: string): string {
+export function fitToWidth(line: string, width: number, prefix?: string): string {
   const prefixLength = prefix ? stripAnsiEscapes(prefix).length : 0;
-  width -= prefixLength;
-  if (line.length <= width)
-    return line;
+  return wrapText(line, width - prefixLength);
+}
 
-  // Even items are plain text, odd items are control sequences.
-  const parts = line.split(ansiRegex);
-  const taken: string[] = [];
-  for (let i = parts.length - 1; i >= 0; i--) {
-    if (i % 2) {
-      // Include all control sequences to preserve formatting.
-      taken.push(parts[i]);
-    } else {
-      let part = parts[i].substring(parts[i].length - width);
-      if (part.length < parts[i].length && part.length > 0) {
-        // Add ellipsis if we are truncating.
-        part = '\u2026' + part.substring(1);
-      }
-      taken.push(part);
-      width -= part.length;
+export function wrapText(text: string, width: number) {
+  // Handle edge cases
+  if (!text)
+    return '';
+  if (width <= 0)
+    return text;
+
+  const lines = [];
+  let currentLine = '';
+  let currentWidth = 0;
+
+  const segments = text.split(' ');
+
+  for (const segment of segments) {
+    // Calculate segment width (Chinese characters count as 2, others as 1)
+    const segmentWidth = segment
+        .split('')
+        .reduce((width, char) => {
+          return width + (/[\u4e00-\u9fff]/.test(char) ? 2 : 1);
+        }, 0);
+
+    // Check if adding this segment would exceed the line width
+    if (currentWidth + segmentWidth > width && currentLine) {
+      // If current line isn't empty, start a new line
+      lines.push(currentLine.trim());
+      currentLine = '';
+      currentWidth = 0;
     }
+
+    // Special handling for long segments that exceed width on their own
+    if (segmentWidth > width) {
+      if (currentLine) {
+        lines.push(currentLine.trim());
+        currentLine = '';
+      }
+      // Split long segment into chunks
+      let remaining = segment;
+      while (remaining) {
+        let chunk = '';
+        let chunkWidth = 0;
+        for (const char of remaining) {
+          const charWidth = /[\u4e00-\u9fff]/.test(char) ? 2 : 1;
+          if (chunkWidth + charWidth > width)
+            break;
+          chunk += char;
+          chunkWidth += charWidth;
+        }
+        lines.push(chunk);
+        remaining = remaining.slice(chunk.length);
+      }
+      continue;
+    }
+
+    // Add segment to current line
+    currentLine += segment;
+    currentWidth += segmentWidth;
   }
-  return taken.reverse().join('');
+
+  // Add the last line if it's not empty
+  if (currentLine.trim())
+    lines.push(currentLine.trim());
+
+
+  return lines.join('\n');
 }
 
 function belongsToNodeModules(file: string) {
diff --git a/tests/playwright-test/fit-to-width.spec.ts b/tests/playwright-test/fit-to-width.spec.ts
new file mode 100644
index 0000000000..0b349b7501
--- /dev/null
+++ b/tests/playwright-test/fit-to-width.spec.ts
@@ -0,0 +1,60 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { fitToWidth, wrapText } from 'packages/playwright/lib/reporters/base';
+import { test, expect } from './playwright-test-fixtures';
+
+test.describe('wrapText', () => {
+  test('chinese characters', () => {
+    expect(wrapText('你好', 2)).toBe('你\n好');
+    expect(wrapText('你好你好', 4)).toBe('你好\n你好');
+  });
+
+  test('mixed characters', () => {
+    expect(wrapText('hello你好', 5)).toBe('hello\n你好');
+    expect(wrapText('你好hello', 5)).toBe('你好h\nello');
+  });
+
+  test('special characters', () => {
+    expect(wrapText('hello@world', 5)).toBe('hello\n@worl\nd');
+    expect(wrapText('你好@世界', 3)).toBe('你\n好@\n世\n界');
+  });
+
+  test('long words', () => {
+    expect(wrapText('supercalifragilisticexpialidocious', 10)).toBe('supercalif\nragilistic\nexpialidoc\nious');
+    expect(wrapText('你好超级长的词', 5)).toBe('你好\n超级\n长的\n词');
+  });
+
+  test('empty string', () => {
+    expect(wrapText('', 5)).toBe('');
+    expect(wrapText('', 5)).toBe('');
+  });
+
+  test('single character', () => {
+    expect(wrapText('a', 1)).toBe('a');
+    expect(wrapText('a', 1)).toBe('a');
+  });
+
+  test('spaces', () => {
+    expect(wrapText('hello world', 5)).toBe('hello\nworld');
+    expect(wrapText('hello world', 5)).toBe('hello\nworld');
+  });
+});
+
+test('fitToWidth', () => {
+  expect(fitToWidth('hello world', 5, '~>')).toBe('hel\nlo\nwor\nld');
+});
+