diff --git a/docs/src/test-api/class-test.md b/docs/src/test-api/class-test.md
index b6ae7d1522..67e06961a9 100644
--- a/docs/src/test-api/class-test.md
+++ b/docs/src/test-api/class-test.md
@@ -1715,6 +1715,11 @@ Whether to box the step in the report. Defaults to `false`. When the step is box
 - `location` <[Location]>
 Specifies a custom location for the step to be shown in test reports. By default, location of the [`method: Test.step`] call is shown.
 
+### option: Test.step.params
+* since: v1.48
+- `params` ?<[Object]>
+An optional key-value object where keys are step parameter names and values are their corresponding parameter values. This information is shown in the trace view.
+
 ## method: Test.use
 * since: v1.10
 
diff --git a/packages/playwright/src/common/testType.ts b/packages/playwright/src/common/testType.ts
index f0882735dc..2f106f3fac 100644
--- a/packages/playwright/src/common/testType.ts
+++ b/packages/playwright/src/common/testType.ts
@@ -259,11 +259,11 @@ export class TestTypeImpl {
     suite._use.push({ fixtures, location });
   }
 
-  async _step<T>(title: string, body: () => Promise<T>, options: {box?: boolean, location?: Location } = {}): Promise<T> {
+  async _step<T>(title: string, body: () => Promise<T>, options: { box?: boolean, location?: Location, params?: Record<string, any> } = {}): Promise<T> {
     const testInfo = currentTestInfo();
     if (!testInfo)
       throw new Error(`test.step() can only be called from a test`);
-    const step = testInfo._addStep({ category: 'test.step', title, location: options.location, box: options.box });
+    const step = testInfo._addStep({ category: 'test.step', title, location: options.location, params: options.params, box: options.box });
     return await zones.run('stepZone', step, async () => {
       try {
         const result = await body();
diff --git a/packages/playwright/types/test.d.ts b/packages/playwright/types/test.d.ts
index f158baac36..4a046b7c46 100644
--- a/packages/playwright/types/test.d.ts
+++ b/packages/playwright/types/test.d.ts
@@ -4703,7 +4703,7 @@ export interface TestType<TestArgs extends KeyValue, WorkerArgs extends KeyValue
    * @param body Step body.
    * @param options
    */
-  step<T>(title: string, body: () => T | Promise<T>, options?: { box?: boolean, location?: Location }): Promise<T>;
+  step<T>(title: string, body: () => T | Promise<T>, options?: { box?: boolean, location?: Location, params?: Record<string, any> }): Promise<T>;
   /**
    * `expect` function can be used to create test assertions. Read more about [test assertions](https://playwright.dev/docs/test-assertions).
    *
diff --git a/tests/playwright-test/test-step.spec.ts b/tests/playwright-test/test-step.spec.ts
index f0bd883777..87e5ea408c 100644
--- a/tests/playwright-test/test-step.spec.ts
+++ b/tests/playwright-test/test-step.spec.ts
@@ -15,6 +15,8 @@
  */
 
 import { test, expect, stripAnsi } from './playwright-test-fixtures';
+import { parseTrace } from '../config/utils';
+import { type ActionTreeItem, buildActionTree } from 'trace-viewer/src/ui/modelUtil';
 
 const stepIndentReporter = `
 import { FullConfig, Location, Reporter, Suite, TestStep } from '@playwright/test/reporter';
@@ -1298,3 +1300,57 @@ hook      |After Hooks
   });
   expect(exitCode).toBe(0);
 });
+
+test('should allow passing params to test.step', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'reporter.ts': stepIndentReporter,
+    'helper.ts': `
+      import { test, TestType } from '@playwright/test';
+
+      export async function sayHello(name: string) {
+        await test.step('says hello', () => {}, { params: { name } });
+      }
+    `,
+    'playwright.config.ts': `
+      module.exports = {
+        reporter: './reporter',
+        use: {
+          trace: 'on',
+        }
+      };
+    `,
+    'a.test.ts': `
+      import { test } from '@playwright/test';
+      import { sayHello } from './helper';
+
+      test('params', async () => {
+        await sayHello('World');
+      });
+    `
+  }, { workers: 1 });
+
+  expect(result.exitCode).toBe(0);
+
+  const trace = await parseTrace(testInfo.outputPath('test-results', 'a-params', 'trace.zip'));
+
+  const { rootItem } = buildActionTree(trace.model.actions);
+  const actionTreeWithParams: string[] = [];
+  const visit = (actionItem: ActionTreeItem, indent: string) => {
+    const line = [
+      indent,
+      actionItem.action?.apiName || actionItem.id,
+      actionItem.action?.params && ` params: ${JSON.stringify(actionItem.action?.params)}`,
+    ].filter(Boolean).join('');
+
+    actionTreeWithParams.push(line);
+    for (const child of actionItem.children)
+      visit(child, indent + '  ');
+  };
+  rootItem.children.forEach(a => visit(a, ''));
+
+  expect(actionTreeWithParams).toEqual([
+    'Before Hooks params: {}',
+    'says hello params: {"name":"World"}',
+    'After Hooks params: {}',
+  ]);
+});
diff --git a/utils/generate_types/overrides-test.d.ts b/utils/generate_types/overrides-test.d.ts
index be1fa7ee37..cf4b4eccd2 100644
--- a/utils/generate_types/overrides-test.d.ts
+++ b/utils/generate_types/overrides-test.d.ts
@@ -128,7 +128,7 @@ export interface TestType<TestArgs extends KeyValue, WorkerArgs extends KeyValue
   afterAll(inner: (args: TestArgs & WorkerArgs, testInfo: TestInfo) => Promise<any> | any): void;
   afterAll(title: string, inner: (args: TestArgs & WorkerArgs, testInfo: TestInfo) => Promise<any> | any): void;
   use(fixtures: Fixtures<{}, {}, TestArgs, WorkerArgs>): void;
-  step<T>(title: string, body: () => T | Promise<T>, options?: { box?: boolean, location?: Location }): Promise<T>;
+  step<T>(title: string, body: () => T | Promise<T>, options?: { box?: boolean, location?: Location, params?: Record<string, any> }): Promise<T>;
   expect: Expect<{}>;
   extend<T extends KeyValue, W extends KeyValue = {}>(fixtures: Fixtures<T, W, TestArgs, WorkerArgs>): TestType<TestArgs & T, WorkerArgs & W>;
   info(): TestInfo;