diff --git a/src/chromium/crConnection.ts b/src/chromium/crConnection.ts
index 4100e0f256..43d1843031 100644
--- a/src/chromium/crConnection.ts
+++ b/src/chromium/crConnection.ts
@@ -44,6 +44,7 @@ export class CRConnection extends platform.EventEmitter {
     this.rootSession = new CRSession(this, '', 'browser', '');
     this._sessions.set('', this.rootSession);
     this._debugProtocol = platform.debug('pw:protocol');
+    (this._debugProtocol as any).color = '34';
   }
 
   static fromSession(session: CRSession): CRConnection {
diff --git a/src/firefox/ffConnection.ts b/src/firefox/ffConnection.ts
index 120ab8efb4..006d33155c 100644
--- a/src/firefox/ffConnection.ts
+++ b/src/firefox/ffConnection.ts
@@ -58,6 +58,7 @@ export class FFConnection extends platform.EventEmitter {
     this.off = super.removeListener;
     this.removeListener = super.removeListener;
     this.once = super.once;
+    (this._debugProtocol as any).color = '34';
   }
 
   async send<T extends keyof Protocol.CommandParameters>(
diff --git a/src/server/processLauncher.ts b/src/server/processLauncher.ts
index 3b0be1b920..4d639a3491 100644
--- a/src/server/processLauncher.ts
+++ b/src/server/processLauncher.ts
@@ -24,6 +24,10 @@ import { TimeoutError } from '../errors';
 import * as platform from '../platform';
 
 const debugLauncher = platform.debug('pw:launcher');
+const debugStdout = platform.debug('pw:stdio:out');
+const debugStderr = platform.debug('pw:stdio:err');
+(debugStdout as any).color = '178';
+(debugStderr as any).color = '160';
 const removeFolderAsync = platform.promisify(removeFolder);
 
 export type LaunchProcessOptions = {
@@ -73,13 +77,19 @@ export async function launchProcess(options: LaunchProcessOptions): Promise<Laun
     return result;
   }
 
-  if (options.dumpio) {
-    spawnedProcess.stdout.pipe(process.stdout);
-    spawnedProcess.stderr.pipe(process.stderr);
-  } else {
-    spawnedProcess.stderr.on('data', () => {});
-    spawnedProcess.stdout.on('data', () => {});
-  }
+  const stdout = readline.createInterface({ input: spawnedProcess.stdout });
+  stdout.on('line', (data: string) => {
+    debugStdout(data);
+    if (options.dumpio)
+      console.log(`\x1b[33m[out]\x1b[0m ${data}`);  // eslint-disable-line no-console
+  });
+
+  const stderr = readline.createInterface({ input: spawnedProcess.stderr });
+  stderr.on('line', (data: string) => {
+    debugStderr(data);
+    if (options.dumpio)
+      console.log(`\x1b[31m[err]\x1b[0m ${data}`);  // eslint-disable-line no-console
+  });
 
   let processClosed = false;
   const waitForProcessToClose = new Promise((fulfill, reject) => {
diff --git a/src/webkit/wkConnection.ts b/src/webkit/wkConnection.ts
index 8182a354f6..d127ccf9fd 100644
--- a/src/webkit/wkConnection.ts
+++ b/src/webkit/wkConnection.ts
@@ -46,6 +46,7 @@ export class WKConnection {
     this.browserSession = new WKSession(this, '', 'Browser has been closed.', (message: any) => {
       this.rawSend(message);
     });
+    (this._debugFunction as any).color = '34';
   }
 
   nextMessageId(): number {
diff --git a/test/fixtures.spec.js b/test/fixtures.spec.js
index d547c44624..242f81bfca 100644
--- a/test/fixtures.spec.js
+++ b/test/fixtures.spec.js
@@ -72,14 +72,14 @@ module.exports.describe = function({testRunner, expect, product, browserType, pl
     it.slow()('should dump browser process stderr', async({server}) => {
       let dumpioData = '';
       const res = spawn('node', [path.join(__dirname, 'fixtures', 'dumpio.js'), playwrightPath, product, 'usewebsocket']);
-      res.stderr.on('data', data => dumpioData += data.toString('utf8'));
+      res.stdout.on('data', data => dumpioData += data.toString('utf8'));
       await new Promise(resolve => res.on('close', resolve));
       expect(dumpioData).toContain('message from dumpio');
     });
     it.slow()('should dump browser process stderr', async({server}) => {
       let dumpioData = '';
       const res = spawn('node', [path.join(__dirname, 'fixtures', 'dumpio.js'), playwrightPath, product]);
-      res.stderr.on('data', data => dumpioData += data.toString('utf8'));
+      res.stdout.on('data', data => dumpioData += data.toString('utf8'));
       await new Promise(resolve => res.on('close', resolve));
       expect(dumpioData).toContain('message from dumpio');
     });
diff --git a/test/playwright.spec.js b/test/playwright.spec.js
index 7f5e007d3f..50e68e444b 100644
--- a/test/playwright.spec.js
+++ b/test/playwright.spec.js
@@ -20,6 +20,7 @@ const os = require('os');
 const rm = require('rimraf').sync;
 const GoldenUtils = require('./golden-utils');
 const {Matchers} = require('../utils/testrunner/');
+const readline = require('readline');
 
 const YELLOW_COLOR = '\x1b[33m';
 const RESET_COLOR = '\x1b[0m';
@@ -103,6 +104,8 @@ module.exports.describe = ({testRunner, product, playwrightPath}) => {
     beforeAll(async state => {
       state.browser = await browserType.launch(defaultBrowserOptions);
       state.browserServer = state.browser.__server__;
+      state._stdout = readline.createInterface({ input: state.browserServer.process().stdout });
+      state._stderr = readline.createInterface({ input: state.browserServer.process().stderr });
     });
 
     afterAll(async state => {
@@ -112,22 +115,18 @@ module.exports.describe = ({testRunner, product, playwrightPath}) => {
     });
 
     beforeEach(async(state, test) => {
-      const onLine = (line) => test.output += line + '\n';
+      test.output = [];
+      const dumpout = data => test.output.push(`\x1b[33m[pw:stdio:out]\x1b[0m ${data}`);
+      const dumperr = data => test.output.push(`\x1b[31m[pw:stdio:err]\x1b[0m ${data}`);
+      state._stdout.on('line', dumpout);
+      state._stderr.on('line', dumperr);
       if (dumpProtocolOnFailure)
-        state.browser._setDebugFunction(onLine);
-
-      let rl;
-      if (state.browserServer.process().stderr) {
-        rl = require('readline').createInterface({ input: state.browserServer.process().stderr });
-        test.output = '';
-        rl.on('line', onLine);
-      }
-
+        state.browser._setDebugFunction(data => test.output.push(`\x1b[32m[pw:protocol]\x1b[0m ${data}`));
       state.tearDown = async () => {
-        if (rl) {
-          rl.removeListener('line', onLine);
-          rl.close();
-        }
+        state._stdout.off('line', dumpout);
+        state._stderr.off('line', dumperr);
+        state._stdout.close();
+        state._stderr.close();
         if (dumpProtocolOnFailure)
           state.browser._setDebugFunction(() => void 0);
       };
diff --git a/utils/testrunner/Reporter.js b/utils/testrunner/Reporter.js
index 79f02698a8..e6b85688af 100644
--- a/utils/testrunner/Reporter.js
+++ b/utils/testrunner/Reporter.js
@@ -207,7 +207,8 @@ class Reporter {
       console.log(`${prefix} ${colors.red(`[TIMEOUT ${test.timeout}ms]`)} ${test.fullName} (${formatLocation(test.location)})`);
       if (test.output) {
         console.log('  Output:');
-        console.log(padLines(test.output, 4));
+        for (const line of test.output)
+          console.log('  ' + line);
       }
     } else if (test.result === 'failed') {
       console.log(`${prefix} ${colors.red('[FAIL]')} ${test.fullName} (${formatLocation(test.location)})`);
@@ -253,7 +254,8 @@ class Reporter {
       }
       if (test.output) {
         console.log('  Output:');
-        console.log(padLines(test.output, 4));
+        for (const line of test.output)
+          console.log('  ' + line);
       }
     }
   }