diff --git a/packages/playwright-test/src/matchers/matchers.ts b/packages/playwright-test/src/matchers/matchers.ts
index 6dd5c658ba718..6a579e066c3fb 100644
--- a/packages/playwright-test/src/matchers/matchers.ts
+++ b/packages/playwright-test/src/matchers/matchers.ts
@@ -352,5 +352,7 @@ export async function toPass(
 
     return { message, pass: this.isNot };
   }
+  if (testStateBeforeToPassMatcher && testInfo)
+    testInfo._restoreErrorState(testStateBeforeToPassMatcher);
   return { pass: !this.isNot, message: () => '' };
 }
diff --git a/tests/playwright-test/expect-to-pass.spec.ts b/tests/playwright-test/expect-to-pass.spec.ts
index d5d9937e57f1d..9096c24e393ca 100644
--- a/tests/playwright-test/expect-to-pass.spec.ts
+++ b/tests/playwright-test/expect-to-pass.spec.ts
@@ -183,6 +183,24 @@ test('should swallow all soft errors inside toPass matcher, if successful', asyn
   expect(result.failed).toBe(1);
 });
 
+test('should work with no.toPass and failing soft assertion', async ({ runInlineTest }) => {
+  test.info().annotations.push({ type: 'issue', description: 'https://github.com/microsoft/playwright/issues/20518' });
+
+  const result = await runInlineTest({
+    'a.spec.ts': `
+      const { test } = pwt;
+      test('should work', async () => {
+        await test.expect(() => {
+          expect.soft(1).toBe(2);
+        }).not.toPass({ timeout: 1000 });
+      });
+    `
+  });
+  expect(result.exitCode).toBe(0);
+  expect(result.failed).toBe(0);
+  expect(result.passed).toBe(1);
+});
+
 test('should show only soft errors on last toPass pass', async ({ runInlineTest }) => {
   const result = await runInlineTest({
     'a.spec.ts': `