diff --git a/src/test/dispatcher.ts b/src/test/dispatcher.ts
index 7d59a987b8..3a4575717f 100644
--- a/src/test/dispatcher.ts
+++ b/src/test/dispatcher.ts
@@ -144,6 +144,12 @@ export class Dispatcher {
           failedTestIds.add(test._id);
           first = false;
         }
+        if (first) {
+          // We had a fatal error after all tests have passed - most likely in the afterAll hook.
+          // Let's just fail the test run.
+          this._hasWorkerErrors = true;
+          this._reporter.onError?.(params.fatalError);
+        }
         // Since we pretend that all remaining tests failed, there is nothing else to run,
         // except for possible retries.
         remaining = [];
diff --git a/tests/playwright-test/hooks.spec.ts b/tests/playwright-test/hooks.spec.ts
index 18bb26be72..d8bae155f6 100644
--- a/tests/playwright-test/hooks.spec.ts
+++ b/tests/playwright-test/hooks.spec.ts
@@ -242,3 +242,19 @@ test('beforeAll hook should get retry index of the first test', async ({ runInli
     '%%test-retry-1',
   ]);
 });
+
+test('afterAll exception should fail the run', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'a.test.js': `
+      const { test } = pwt;
+      test.afterAll(() => {
+        throw new Error('From the afterAll');
+      });
+      test('passed', () => {
+      });
+    `,
+  });
+  expect(result.exitCode).toBe(1);
+  expect(result.passed).toBe(1);
+  expect(result.output).toContain('From the afterAll');
+});