diff --git a/src/test/worker.ts b/src/test/worker.ts
index ab639c7144..9d0e20d6be 100644
--- a/src/test/worker.ts
+++ b/src/test/worker.ts
@@ -74,7 +74,7 @@ process.on('message', async message => {
     workerIndex = initParams.workerIndex;
     startProfiling();
     workerRunner = new WorkerRunner(initParams);
-    for (const event of ['testBegin', 'testEnd', 'stepBegin', 'stepEnd', 'done'])
+    for (const event of ['testBegin', 'testEnd', 'stepBegin', 'stepEnd', 'done', 'teardownError'])
       workerRunner.on(event, sendMessageToParent.bind(null, event));
     return;
   }
diff --git a/src/test/workerRunner.ts b/src/test/workerRunner.ts
index 421dba9654..54df37d327 100644
--- a/src/test/workerRunner.ts
+++ b/src/test/workerRunner.ts
@@ -76,8 +76,10 @@ export class WorkerRunner extends EventEmitter {
       await this._fixtureRunner.teardownScope('test');
       await this._fixtureRunner.teardownScope('worker');
     })(), this._deadline());
-    if (result.timedOut)
-      throw new Error(`Timeout of ${this._project.config.timeout}ms exceeded while shutting down environment`);
+    if (result.timedOut && !this._fatalError)
+      this._fatalError = { message: colors.red(`Timeout of ${this._project.config.timeout}ms exceeded while shutting down environment`) };
+    if (this._fatalError)
+      this.emit('teardownError', { error: this._fatalError });
   }
 
   unhandledError(error: Error | any) {
@@ -502,6 +504,7 @@ export class WorkerRunner extends EventEmitter {
       fatalError: this._fatalError,
     };
     this.emit('done', donePayload);
+    this._fatalError = undefined;
   }
 }
 
diff --git a/tests/playwright-test/basic.spec.ts b/tests/playwright-test/basic.spec.ts
index 8a206a2d46..dcab594d77 100644
--- a/tests/playwright-test/basic.spec.ts
+++ b/tests/playwright-test/basic.spec.ts
@@ -382,3 +382,18 @@ test('test.skip should define a skipped test', async ({ runInlineTest }) => {
   expect(result.skipped).toBe(1);
   expect(result.output).not.toContain('%%dontseethis');
 });
+
+test('should report unhandled rejection during worker shutdown', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'a.test.ts': `
+      const { test } = pwt;
+      test('unhandled rejection', async () => {
+        new Promise((f, r) => r(new Error('Unhandled')));
+      });
+    `,
+  });
+  expect(result.exitCode).toBe(1);
+  expect(result.passed).toBe(1);
+  expect(result.output).toContain('Error: Unhandled');
+  expect(result.output).toContain('a.test.ts:7:33');
+});