diff --git a/packages/playwright-test/src/dispatcher.ts b/packages/playwright-test/src/dispatcher.ts
index c7edbc7738..831af5b864 100644
--- a/packages/playwright-test/src/dispatcher.ts
+++ b/packages/playwright-test/src/dispatcher.ts
@@ -529,6 +529,14 @@ class Worker extends EventEmitter {
       repeatEachIndex: testGroup.repeatEachIndex,
       projectIndex: testGroup.projectIndex,
       loader: loaderData,
+      stdoutDimension: {
+        rows: process.stdout.rows,
+        columns: process.stdout.columns
+      },
+      stderrDimension: {
+        rows: process.stderr.rows,
+        columns: process.stderr.columns
+      },
     };
     this.send({ method: 'init', params });
   }
diff --git a/packages/playwright-test/src/ipc.ts b/packages/playwright-test/src/ipc.ts
index de10417e8d..64806f92e2 100644
--- a/packages/playwright-test/src/ipc.ts
+++ b/packages/playwright-test/src/ipc.ts
@@ -24,12 +24,19 @@ export type SerializedLoaderData = {
   configCLIOverrides: ConfigCLIOverrides;
 };
 
+export type TtyDimension = {
+  rows: number | undefined;
+  columns: number | undefined;
+};
+
 export type WorkerInitParams = {
   workerIndex: number;
   parallelIndex: number;
   repeatEachIndex: number;
   projectIndex: number;
   loader: SerializedLoaderData;
+  stdoutDimension: TtyDimension;
+  stderrDimension: TtyDimension;
 };
 
 export type TestBeginPayload = {
diff --git a/packages/playwright-test/src/worker.ts b/packages/playwright-test/src/worker.ts
index 89d8af800e..7a4b067b3e 100644
--- a/packages/playwright-test/src/worker.ts
+++ b/packages/playwright-test/src/worker.ts
@@ -65,6 +65,7 @@ process.on('message', async message => {
   if (message.method === 'init') {
     const initParams = message.params as WorkerInitParams;
     workerIndex = initParams.workerIndex;
+    initConsoleParameters(initParams);
     startProfiling();
     workerRunner = new WorkerRunner(initParams);
     for (const event of ['testBegin', 'testEnd', 'stepBegin', 'stepEnd', 'done', 'teardownErrors'])
@@ -120,3 +121,17 @@ function chunkToParams(chunk: Buffer | string):  { text?: string, buffer?: strin
     return { text: util.inspect(chunk) };
   return { text: chunk };
 }
+
+function initConsoleParameters(initParams: WorkerInitParams) {
+  // Make sure the output supports colors.
+  process.stdout.isTTY = true;
+  process.stderr.isTTY = true;
+  if (initParams.stdoutDimension.rows)
+    process.stdout.rows = initParams.stdoutDimension.rows;
+  if (initParams.stdoutDimension.columns)
+    process.stdout.columns = initParams.stdoutDimension.columns;
+  if (initParams.stderrDimension.rows)
+    process.stderr.rows = initParams.stderrDimension.rows;
+  if (initParams.stderrDimension.columns)
+    process.stderr.columns = initParams.stderrDimension.columns;
+}
diff --git a/tests/playwright-test/stdio.spec.ts b/tests/playwright-test/stdio.spec.ts
index 51bfbf36cb..14af8015d3 100644
--- a/tests/playwright-test/stdio.spec.ts
+++ b/tests/playwright-test/stdio.spec.ts
@@ -76,3 +76,22 @@ test('should ignore stdio when quiet', async ({ runInlineTest }) => {
   }, { reporter: 'list' });
   expect(result.output).not.toContain('%%');
 });
+
+test('should support console colors', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'a.spec.js': `
+      const { test } = pwt;
+      test('console log', () => {
+        console.log('process.stdout.isTTY = ' + process.stdout.isTTY);
+        console.log('process.stderr.isTTY = ' + process.stderr.isTTY);
+        console.log({ b: true, n: 123, s: 'abc' });
+        console.error({ b: false, n: 123, s: 'abc' });
+      });
+    `
+  });
+  expect(result.output).toContain(`process.stdout.isTTY = true`);
+  expect(result.output).toContain(`process.stderr.isTTY = true`);
+  // The output should have colors.
+  expect(result.output).toContain(`{ b: \x1b[33mtrue\x1b[39m, n: \x1b[33m123\x1b[39m, s: \x1b[32m'abc'\x1b[39m }`);
+  expect(result.output).toContain(`{ b: \x1b[33mfalse\x1b[39m, n: \x1b[33m123\x1b[39m, s: \x1b[32m'abc'\x1b[39m }`);
+});