diff --git a/packages/playwright-core/src/server/trace/recorder/snapshotterInjected.ts b/packages/playwright-core/src/server/trace/recorder/snapshotterInjected.ts
index f3a69ea450..928c0b3b07 100644
--- a/packages/playwright-core/src/server/trace/recorder/snapshotterInjected.ts
+++ b/packages/playwright-core/src/server/trace/recorder/snapshotterInjected.ts
@@ -269,6 +269,7 @@ export function frameSnapshotStreamer(snapshotStreamer: string) {
       const snapshotNumber = ++this._lastSnapshotNumber;
       let nodeCounter = 0;
       let shadowDomNesting = 0;
+      let headNesting = 0;
 
       // Ensure we are up to date.
       this._handleMutations(this._observer.takeRecords());
@@ -293,6 +294,10 @@ export function frameSnapshotStreamer(snapshotStreamer: string) {
           return;
         if (nodeName === 'META' && (node as HTMLMetaElement).httpEquiv.toLowerCase() === 'content-security-policy')
           return;
+        // Skip iframes which are inside document's head as they are not visisble.
+        // See https://github.com/microsoft/playwright/issues/12005.
+        if ((nodeName === 'IFRAME' || nodeName === 'FRAME') && headNesting)
+          return;
 
         const data = ensureCachedData(node);
         const values: any[] = [];
@@ -392,12 +397,15 @@ export function frameSnapshotStreamer(snapshotStreamer: string) {
           result.push(value);
         } else {
           if (nodeName === 'HEAD') {
+            ++headNesting;
             // Insert fake <base> first, to ensure all <link> elements use the proper base uri.
             this._fakeBase.setAttribute('href', document.baseURI);
             visitChild(this._fakeBase);
           }
           for (let child = node.firstChild; child; child = child.nextSibling)
             visitChild(child);
+          if (nodeName === 'HEAD')
+            --headNesting;
           expectValue(kEndOfList);
           let documentOrShadowRoot = null;
           if (node.ownerDocument!.documentElement === node)
diff --git a/tests/tracing.spec.ts b/tests/tracing.spec.ts
index 5970529d03..0ee7ab2366 100644
--- a/tests/tracing.spec.ts
+++ b/tests/tracing.spec.ts
@@ -386,6 +386,27 @@ test('should not hang for clicks that open dialogs', async ({ context, page }) =
   await context.tracing.stop();
 });
 
+test('should ignore iframes in head', async ({ context, page, server }, testInfo) => {
+  await page.goto(server.PREFIX + '/input/button.html');
+  await page.evaluate(() => {
+    document.head.appendChild(document.createElement('iframe'));
+    // Add iframe in a shadow tree.
+    const div = document.createElement('div');
+    document.head.appendChild(div);
+    const shadow = div.attachShadow({ mode: 'open' });
+    shadow.appendChild(document.createElement('iframe'));
+  });
+
+  await context.tracing.start({ screenshots: true, snapshots: true });
+  await page.click('button');
+  await context.tracing.stopChunk({ path: testInfo.outputPath('trace.zip') });
+
+  const trace = await parseTrace(testInfo.outputPath('trace.zip'));
+  expect(trace.events.find(e => e.metadata?.apiName === 'page.click')).toBeTruthy();
+  expect(trace.events.find(e => e.type === 'frame-snapshot')).toBeTruthy();
+  expect(trace.events.find(e => e.type === 'frame-snapshot' && JSON.stringify(e.snapshot.html).includes('IFRAME'))).toBeFalsy();
+});
+
 test('should hide internal stack frames', async ({ context, page }, testInfo) => {
   await context.tracing.start({ screenshots: true, snapshots: true });
   let evalPromise;