diff --git a/packages/isomorphic/timeoutRunner.ts b/packages/isomorphic/timeoutRunner.ts
index d551ee203323b..b001c6bc0399f 100644
--- a/packages/isomorphic/timeoutRunner.ts
+++ b/packages/isomorphic/timeoutRunner.ts
@@ -24,7 +24,8 @@ import { monotonicTime } from './time';
 
 export async function raceAgainstDeadline<T>(cb: () => Promise<T>, deadline: number): Promise<{ result: T, timedOut: false } | { timedOut: true }> {
   let timer: NodeJS.Timeout | undefined;
-  return Promise.race([
+  // Note: not including "await" here truncates the async stack inside cb(), so always include it.
+  return await Promise.race([
     cb().then(result => {
       return { result, timedOut: false };
     }),
diff --git a/tests/playwright-test/test-step.spec.ts b/tests/playwright-test/test-step.spec.ts
index b23541dec3a37..0a994c6d8576f 100644
--- a/tests/playwright-test/test-step.spec.ts
+++ b/tests/playwright-test/test-step.spec.ts
@@ -388,6 +388,41 @@ test('should not pass return value from step', async ({ runInlineTest }) => {
   expect(result.output).toContain('v2 = 20');
 });
 
+test('should contain steps chain in the stack', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'a.test.ts': `
+      import { test, expect } from '@playwright/test';
+
+      async function innerFunction(page) {
+        await test.step('inner step', async () => {
+          await expect(page.locator('div')).toBeVisible({ timeout: 1 });
+        });
+      }
+
+      async function outerFunction(page) {
+        await test.step('outer step', async () => {
+          await innerFunction(page);
+        });
+      }
+
+      // It is important to have "page" here to trigger some internal instrumentation.
+      test('test with chained steps', async ({ page }) => {
+        await test.step('top-level step', async () => {
+          await outerFunction(page);
+        });
+      });
+    `
+  }, { reporter: '', workers: 1 });
+  expect(result.exitCode).toBe(1);
+  expect(result.failed).toBe(1);
+  expect(result.output).toContain('at innerFunction');
+  expect(result.output).toContain('at outerFunction');
+  expect(result.output).toContain('a.test.ts:5');
+  expect(result.output).toContain('a.test.ts:6');
+  expect(result.output).toContain('a.test.ts:11');
+  expect(result.output).toContain('a.test.ts:18');
+});
+
 test('step timeout option', async ({ runInlineTest }) => {
   const result = await runInlineTest({
     'a.test.ts': `