diff --git a/.changeset/sixty-colts-cough.md b/.changeset/sixty-colts-cough.md
new file mode 100644
index 00000000000..79449cb3ec6
--- /dev/null
+++ b/.changeset/sixty-colts-cough.md
@@ -0,0 +1,5 @@
+---
+"saleor-dashboard": minor
+---
+
+Optimizing playwright setup and playwright.config.ts files
diff --git a/.github/actions/run-pw-tests/action.yml b/.github/actions/run-pw-tests/action.yml
index 9c868592f9d..3e32f320d24 100644
--- a/.github/actions/run-pw-tests/action.yml
+++ b/.github/actions/run-pw-tests/action.yml
@@ -23,37 +23,57 @@ inputs:
     description: "mailpit uri"
     required: true
 
-runs:
-  using: "composite"
-  steps:
-    - uses: actions/setup-node@v3
-      with:
-        node-version-file: ".nvmrc"
+on:
+  push:
+    branches:
+      - main
+  pull_request:
+    branches:
+      - main
 
-    - name: Install dependencies
-      shell: bash
-      run: npm ci
+jobs:
+  setup_environment:
+    runs-on: ubuntu-latest
+    strategy:
+      fail-fast: false
+      matrix:
+        shardIndex: [1, 2, 3, 4]
+    steps:
+      - name: Setup Node.js
+        uses: actions/setup-node@v3
+        with:
+          node-version-file: ".nvmrc"
+      - name: Install dependencies
+        run: npm ci
+      - name: Install Playwright Browsers
+        run: npx playwright install --with-deps
 
-    - name: Install Playwright Browsers
-      shell: bash
-      run: npx playwright install --with-deps
+  run_tests:
+    needs: setup_environment
+    runs-on: ubuntu-latest
+    strategy:
+      fail-fast: false
+      matrix:
+        shardIndex: [1, 2, 3, 4]
+    steps:
+      - name: Checkout code
+        uses: actions/checkout@v2
 
-    - name: Run tests
-      shell: bash
-      env:
-        API_URI: ${{ inputs.API_URL }}
-        BASE_URL: ${{ inputs.BASE_URL }}
-        E2E_USER_NAME: ${{ inputs.E2E_USER_NAME }}
-        E2E_USER_PASSWORD: ${{ inputs.E2E_USER_PASSWORD }}
-        E2E_PERMISSIONS_USERS_PASSWORD: ${{ inputs.E2E_PERMISSIONS_USERS_PASSWORD }}
-        SHARD_NUMBER: ${{ inputs.SHARD }}
-        MAILPITURL: ${{ inputs.MAILPITURL }} 
-      run: npm run qa:pw-e2e -- --shard "$SHARD_NUMBER"
+      - name: Run tests
+        env:
+          API_URI: ${{ API_URL }}
+          BASE_URL: ${{ BASE_URL }}
+          E2E_USER_NAME: ${{ E2E_USER_NAME }}
+          E2E_USER_PASSWORD: ${{ E2E_USER_PASSWORD }}
+          E2E_PERMISSIONS_USERS_PASSWORD: ${{ E2E_PERMISSIONS_USERS_PASSWORD }}
+          SHARD_NUMBER: ${{ SHARD }}
+          MAILPITURL: ${{ MAILPITURL }}
+        run: npx playwright test --shard=${{ matrix.shardIndex }}/${{ strategy.matrix.shardIndex }}
 
-    - name: Upload blob report to GitHub Actions Artifacts
-      uses: actions/upload-artifact@v3
-      if: always()
-      with:
-        name: all-blob-reports
-        path: blob-report
-        retention-days: 1
+      - name: Upload blob report to GitHub Actions Artifacts
+        uses: actions/upload-artifact@v3
+        if: always()
+        with:
+          name: blob-report-${{ matrix.shardIndex }}
+          path: blob-report
+          retention-days: 1
diff --git a/playwright.config.ts b/playwright.config.ts
index c23c0b44d53..e04330a5877 100644
--- a/playwright.config.ts
+++ b/playwright.config.ts
@@ -8,35 +8,29 @@ export default defineConfig({
   testDir: "playwright/tests",
   fullyParallel: true,
   forbidOnly: !!process.env.CI,
-  // TODO hardcoded values should be extracted to ENVs
   retries: process.env.CI ? 2 : 0,
-  workers: process.env.CI ? 2 : 2,
+  workers: process.env.CI ? 4 : 2,
   reporter: process.env.CI ? "blob" : "html",
-  timeout: 60000 ,
-  expect: { timeout: 10000 },
-  // webServer: {
-  //   command: "npm run dev",
-  //   url: "http://localhost:9000/",
-  //   reuseExistingServer: !process.env.CI,
-  // },
-  /* Shared settings for all the projects below. See https://playwright.dev/docs/api/class-testoptions. */
+  maxFailures: 5,
+  timeout: process.env.CI ? 45000 : 60000,
   use: {
     baseURL: process.env.BASE_URL,
-    trace: "on-first-retry",
+    trace: process.env.CI ? "on-first-retry" : "off",
     screenshot: "only-on-failure",
     testIdAttribute: "data-test-id",
     video: process.env.CI ? "retain-on-failure" : "off",
+    headless: true,
   },
-
-  /* Configure projects for major browsers */
   projects: [
-    { name: "setup", testMatch: /.*\.setup\.ts/ },
-
     {
-      // if new project added make sure to add dependency as below
+    name: "setup",
+    testMatch: /.*\.setup\.ts/
+    },
+    {
       dependencies: ["setup"],
       name: "chromium",
       use: { ...devices["Desktop Chrome"] },
     },
   ],
 });
+
diff --git a/playwright/tests/auth.setup.ts b/playwright/tests/auth.setup.ts
index d5c6f56d936..9c0ff4abd18 100644
--- a/playwright/tests/auth.setup.ts
+++ b/playwright/tests/auth.setup.ts
@@ -21,20 +21,26 @@ const authenticateAndSaveState = async (request: APIRequestContext, email: strin
     });
     fs.writeFileSync(filePath, JSON.stringify(loginJsonInfo, null, 2));
 };
-const authSetup = async ( request: APIRequestContext,email: string, password: string, fileName: string) => {
+
+const authSetup = async (request: APIRequestContext, email: string, password: string, fileName: string) => {
     const tempDir = path.join(__dirname, '../.auth');
     if (!fs.existsSync(tempDir)) {
         fs.mkdirSync(tempDir, { recursive: true });
     }
     const tempFilePath = path.join(tempDir, fileName);
-    await authenticateAndSaveState(request, email, password, tempFilePath);
+
+    if (!fs.existsSync(tempFilePath)) {
+        await authenticateAndSaveState(request, email, password, tempFilePath);
+    }
 };
+
 setup("Authenticate as admin via API", async ({ request }) => {
     await authSetup(request, process.env.E2E_USER_NAME!, process.env.E2E_USER_PASSWORD!, 'admin.json');
 });
 
 const user: UserPermissionType = USER_PERMISSION;
 const password: string = process.env.E2E_PERMISSIONS_USERS_PASSWORD!;
+
 for (const permission of permissions) {
     setup(`Authenticate as ${permission} user via API`, async ({ request }) => {
         await authSetup(request, user[permission], password, `${permission}.json`);