diff --git a/src/test/workerRunner.ts b/src/test/workerRunner.ts
index cb10388e6a40e..efab4c3c0e920 100644
--- a/src/test/workerRunner.ts
+++ b/src/test/workerRunner.ts
@@ -201,7 +201,8 @@ export class WorkerRunner extends EventEmitter {
     const baseOutputDir = (() => {
       const relativeTestFilePath = path.relative(this._project.config.testDir, test._requireFile.replace(/\.(spec|test)\.(js|ts|mjs)$/, ''));
       const sanitizedRelativePath = relativeTestFilePath.replace(process.platform === 'win32' ? new RegExp('\\\\', 'g') : new RegExp('/', 'g'), '-');
-      let testOutputDir = sanitizedRelativePath + '-' + sanitizeForFilePath(test.title);
+      const fullTitleWithoutSpec = test.titlePath().slice(1).join(' ');
+      let testOutputDir = sanitizedRelativePath + '-' + sanitizeForFilePath(fullTitleWithoutSpec);
       if (this._uniqueProjectNamePathSegment)
         testOutputDir += '-' + this._uniqueProjectNamePathSegment;
       if (retry)
diff --git a/tests/playwright-test/playwright.artifacts.spec.ts b/tests/playwright-test/playwright.artifacts.spec.ts
index 2d51260d639bc..ba7c620fe332b 100644
--- a/tests/playwright-test/playwright.artifacts.spec.ts
+++ b/tests/playwright-test/playwright.artifacts.spec.ts
@@ -145,9 +145,9 @@ test('should work with screenshot: on', async ({ runInlineTest }, testInfo) => {
     '  test-failed-1.png',
     'artifacts-persistent-passing',
     '  test-finished-1.png',
-    'artifacts-shared-failing',
+    'artifacts-shared-shared-failing',
     '  test-failed-1.png',
-    'artifacts-shared-passing',
+    'artifacts-shared-shared-passing',
     '  test-finished-1.png',
     'artifacts-two-contexts',
     '  test-finished-1.png',
@@ -177,7 +177,7 @@ test('should work with screenshot: only-on-failure', async ({ runInlineTest }, t
     '  test-failed-1.png',
     'artifacts-persistent-failing',
     '  test-failed-1.png',
-    'artifacts-shared-failing',
+    'artifacts-shared-shared-failing',
     '  test-failed-1.png',
     'artifacts-two-contexts-failing',
     '  test-failed-1.png',
@@ -210,9 +210,9 @@ test('should work with trace: on', async ({ runInlineTest }, testInfo) => {
     '  trace.zip',
     'artifacts-persistent-passing',
     '  trace.zip',
-    'artifacts-shared-failing',
+    'artifacts-shared-shared-failing',
     '  trace.zip',
-    'artifacts-shared-passing',
+    'artifacts-shared-shared-passing',
     '  trace.zip',
     'artifacts-two-contexts',
     '  trace-1.zip',
@@ -242,7 +242,7 @@ test('should work with trace: retain-on-failure', async ({ runInlineTest }, test
     '  trace.zip',
     'artifacts-persistent-failing',
     '  trace.zip',
-    'artifacts-shared-failing',
+    'artifacts-shared-shared-failing',
     '  trace.zip',
     'artifacts-two-contexts-failing',
     '  trace-1.zip',
@@ -269,7 +269,7 @@ test('should work with trace: on-first-retry', async ({ runInlineTest }, testInf
     '  trace.zip',
     'artifacts-persistent-failing-retry1',
     '  trace.zip',
-    'artifacts-shared-failing-retry1',
+    'artifacts-shared-shared-failing-retry1',
     '  trace.zip',
     'artifacts-two-contexts-failing-retry1',
     '  trace-1.zip',
@@ -312,9 +312,9 @@ test('should stop tracing with trace: on-first-retry, when not retrying', async
   expect(result.passed).toBe(1);
   expect(result.flaky).toBe(1);
   expect(listFiles(testInfo.outputPath('test-results'))).toEqual([
-    'a-flaky-retry1',
+    'a-shared-flaky-retry1',
     '  trace.zip',
-    'a-no-tracing',  // Empty dir created because of testInfo.outputPath() call.
+    'a-shared-no-tracing',  // Empty dir created because of testInfo.outputPath() call.
     'report.json',
   ]);
 });
diff --git a/tests/playwright-test/test-output-dir.spec.ts b/tests/playwright-test/test-output-dir.spec.ts
index a67601cf410aa..5550ed00c3948 100644
--- a/tests/playwright-test/test-output-dir.spec.ts
+++ b/tests/playwright-test/test-output-dir.spec.ts
@@ -270,3 +270,18 @@ test('should allow nonAscii characters in the output dir', async ({ runInlineTes
   const outputDir = result.output.split('\n').filter(x => x.startsWith('%%'))[0].slice('%%'.length);
   expect(outputDir).toBe(path.join(testInfo.outputDir, 'test-results', 'my-test-こんにちは世界'));
 });
+
+test('should allow include the describe name the output dir', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'my-test.spec.js': `
+      const { test } = pwt;
+      test.describe('hello', () => {
+        test('world', async ({}, testInfo) => {
+          console.log('\\n%%' + testInfo.outputDir);
+        });
+      });
+    `,
+  });
+  const outputDir = result.output.split('\n').filter(x => x.startsWith('%%'))[0].slice('%%'.length);
+  expect(outputDir).toBe(path.join(testInfo.outputDir, 'test-results', 'my-test-hello-world'));
+});