diff --git a/packages/playwright/src/program.ts b/packages/playwright/src/program.ts
index ea0a48fe6a..93969662bb 100644
--- a/packages/playwright/src/program.ts
+++ b/packages/playwright/src/program.ts
@@ -282,7 +282,7 @@ async function mergeReports(reportDir: string | undefined, opts: { [key: string]
 function overridesFromOptions(options: { [key: string]: any }): ConfigCLIOverrides {
   const shardPair = options.shard ? options.shard.split('/').map((t: string) => parseInt(t, 10)) : undefined;
 
-  let updateSnapshots: 'all' | 'changed' | 'missing' | 'none';
+  let updateSnapshots: 'all' | 'changed' | 'missing' | 'none' | undefined;
   if (['all', 'changed', 'missing', 'none'].includes(options.updateSnapshots))
     updateSnapshots = options.updateSnapshots;
   else
@@ -303,7 +303,7 @@ function overridesFromOptions(options: { [key: string]: any }): ConfigCLIOverrid
     tsconfig: options.tsconfig ? path.resolve(process.cwd(), options.tsconfig) : undefined,
     ignoreSnapshots: options.ignoreSnapshots ? !!options.ignoreSnapshots : undefined,
     updateSnapshots,
-    updateSourceMethod: options.updateSourceMethod || 'patch',
+    updateSourceMethod: options.updateSourceMethod,
     workers: options.workers,
   };
 
diff --git a/tests/playwright-test/update-aria-snapshot.spec.ts b/tests/playwright-test/update-aria-snapshot.spec.ts
index 0052d3d3d9..fce8e48551 100644
--- a/tests/playwright-test/update-aria-snapshot.spec.ts
+++ b/tests/playwright-test/update-aria-snapshot.spec.ts
@@ -661,4 +661,45 @@ test.describe('update-source-method', () => {
   a.spec.ts
 `);
   });
+
+  test('should overwrite source when specified in the config', async ({ runInlineTest }, testInfo) => {
+    const result = await runInlineTest({
+      '.git/marker': '',
+      'playwright.config.ts': `
+        export default { updateSourceMethod: 'overwrite' };
+      `,
+      'a.spec.ts': `
+        import { test, expect } from '@playwright/test';
+        test('test', async ({ page }) => {
+          await page.setContent(\`<h1>hello</h1>\`);
+          await expect(page.locator('body')).toMatchAriaSnapshot(\`
+            - heading "world"
+          \`);
+        });
+      `
+    }, { 'update-snapshots': 'all' });
+
+    expect(result.exitCode).toBe(0);
+    const patchPath = testInfo.outputPath('test-results/rebaselines.patch');
+    expect(fs.existsSync(patchPath)).toBeFalsy();
+
+    const data = fs.readFileSync(testInfo.outputPath('a.spec.ts'), 'utf-8');
+    expect(data).toBe(`
+        import { test, expect } from '@playwright/test';
+        test('test', async ({ page }) => {
+          await page.setContent(\`<h1>hello</h1>\`);
+          await expect(page.locator('body')).toMatchAriaSnapshot(\`
+            - heading "hello" [level=1]
+          \`);
+        });
+      `);
+
+    expect(stripAnsi(result.output).replace(/\\/g, '/')).toContain(`New baselines created for:
+
+  a.spec.ts
+`);
+
+    const result2 = await runInlineTest({});
+    expect(result2.exitCode).toBe(0);
+  });
 });