diff --git a/packages/playwright-test/src/cli.ts b/packages/playwright-test/src/cli.ts
index 2cb060fe45..def8b74e27 100644
--- a/packages/playwright-test/src/cli.ts
+++ b/packages/playwright-test/src/cli.ts
@@ -119,9 +119,8 @@ async function createLoader(opts: { [key: string]: any }): Promise<Loader> {
     overrides.maxFailures = 1;
     overrides.timeout = 0;
     overrides.workers = 1;
-  }
-  if (opts.debug)
     process.env.PWDEBUG = '1';
+  }
 
   const loader = new Loader(defaultConfig, overrides);