diff --git a/packages/playwright/src/matchers/toMatchSnapshot.ts b/packages/playwright/src/matchers/toMatchSnapshot.ts
index 7a3242100e..ed1071ab33 100644
--- a/packages/playwright/src/matchers/toMatchSnapshot.ts
+++ b/packages/playwright/src/matchers/toMatchSnapshot.ts
@@ -226,7 +226,7 @@ class SnapshotHelper {
       this.testInfo.attachments.push({ name: addSuffixToFilePath(this.outputBaseName, '-actual'), contentType: this.mimeType, path: this.actualPath });
     }
     const message = `A snapshot doesn't exist at ${this.snapshotPath}${isWriteMissingMode ? ', writing actual.' : '.'}`;
-    if (this.updateSnapshots === 'all') {
+    if (['all', 'missing'].includes(this.updateSnapshots)) {
       /* eslint-disable no-console */
       console.log(message);
       return this.createMatcherResult(message, true);
diff --git a/tests/playwright-test/to-have-screenshot.spec.ts b/tests/playwright-test/to-have-screenshot.spec.ts
index 07fb590375..7b68454ad6 100644
--- a/tests/playwright-test/to-have-screenshot.spec.ts
+++ b/tests/playwright-test/to-have-screenshot.spec.ts
@@ -1150,6 +1150,80 @@ test('should update expectations with retries', async ({ runInlineTest }, testIn
   expect(comparePNGs(data, whiteImage)).toBe(null);
 });
 
+test('should update expectations with updateSnapshot: all config option', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    ...playwrightConfig({
+      updateSnapshots: 'all',
+      snapshotPathTemplate: '__screenshots__/{testFilePath}/{arg}{ext}',
+    }),
+    'a.spec.js': `
+      const { test, expect } = require('@playwright/test');
+      test('is a test', async ({ page }) => {
+        await expect(page).toHaveScreenshot('snapshot.png');
+      });
+    `
+  });
+
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+  const snapshotOutputPath = testInfo.outputPath('__screenshots__/a.spec.js/snapshot.png');
+  expect(result.output).toContain(`A snapshot doesn't exist at ${snapshotOutputPath}, writing actual`);
+  const data = fs.readFileSync(snapshotOutputPath);
+  expect(comparePNGs(data, whiteImage)).toBe(null);
+});
+
+test('should update expectations with updateSnapshot: missing config option', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    ...playwrightConfig({
+      updateSnapshots: 'missing',
+      snapshotPathTemplate: '__screenshots__/{testFilePath}/{arg}{ext}',
+    }),
+    'a.spec.js': `
+      const { test, expect } = require('@playwright/test');
+      test('is a test', async ({ page }) => {
+        await expect(page).toHaveScreenshot('snapshot.png');
+      });
+    `
+  });
+
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+  const snapshotOutputPath = testInfo.outputPath('__screenshots__/a.spec.js/snapshot.png');
+  expect(result.output).toContain(`A snapshot doesn't exist at ${snapshotOutputPath}, writing actual`);
+  const data = fs.readFileSync(snapshotOutputPath);
+  expect(comparePNGs(data, whiteImage)).toBe(null);
+});
+
+test('should update expectations with updateSnapshot: missing config option and throw for changed ones', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    ...playwrightConfig({
+      updateSnapshots: 'missing',
+      snapshotPathTemplate: '__screenshots__/{testFilePath}/{arg}{ext}',
+    }),
+    'passed.spec.js': `
+      const { test, expect } = require('@playwright/test');
+      test('is a test', async ({ page }) => {
+        await expect(page).toHaveScreenshot('snapshot.png');
+      });
+    `,
+    'failing.spec.js': `
+      const { test, expect } = require('@playwright/test');
+      test('is a test', async ({ page }) => {
+        await expect(page).toHaveScreenshot('exists.png');
+      });
+    `,
+    '__screenshots__/failing.spec.js/exists.png': redImage,
+  });
+
+  expect(result.exitCode).toBe(1);
+  expect(result.passed).toBe(1);
+  expect(result.failed).toBe(1);
+  const snapshotOutputPath = testInfo.outputPath('__screenshots__/passed.spec.js/snapshot.png');
+  expect(result.output).toContain(`A snapshot doesn't exist at ${snapshotOutputPath}, writing actual`);
+  const data = fs.readFileSync(snapshotOutputPath);
+  expect(comparePNGs(data, whiteImage)).toBe(null);
+});
+
 test('should respect comparator name', async ({ runInlineTest }) => {
   const expected = fs.readFileSync(path.join(__dirname, '../image_tools/fixtures/should-match/tiny-antialiasing-sample/tiny-expected.png'));
   const actualURL = pathToFileURL(path.join(__dirname, '../image_tools/fixtures/should-match/tiny-antialiasing-sample/tiny-actual.png'));