diff --git a/packages/playwright-test/src/plugins/vitePlugin.ts b/packages/playwright-test/src/plugins/vitePlugin.ts
index 884419b612..61c60d606c 100644
--- a/packages/playwright-test/src/plugins/vitePlugin.ts
+++ b/packages/playwright-test/src/plugins/vitePlugin.ts
@@ -24,9 +24,10 @@ import type { ComponentInfo } from '../tsxTransform';
 import { collectComponentUsages, componentInfo } from '../tsxTransform';
 import type { FullConfig } from '../types';
 import { assert } from 'playwright-core/lib/utils';
+import type { AddressInfo } from 'net';
 
 let previewServer: PreviewServer;
-const VERSION = 2;
+const VERSION = 3;
 
 type CtConfig = {
   ctPort?: number;
@@ -49,7 +50,6 @@ export function createPlugin(
       const port = use.ctPort || 3100;
       const viteConfig: InlineConfig = use.ctViteConfig || {};
       const relativeTemplateDir = use.ctTemplateDir || 'playwright';
-      process.env.PLAYWRIGHT_VITE_COMPONENTS_BASE_URL = `http://localhost:${port}/${relativeTemplateDir}/index.html`;
 
       const rootDir = viteConfig.root || configDir;
       const templateDir = path.join(rootDir, relativeTemplateDir);
@@ -113,6 +113,10 @@ export function createPlugin(
       if (hasNewTests || hasNewComponents || sourcesDirty)
         await fs.promises.writeFile(buildInfoFile, JSON.stringify(buildInfo, undefined, 2));
       previewServer = await preview(viteConfig);
+      const isAddressInfo = (x: any): x is AddressInfo => x?.address;
+      const address = previewServer.httpServer.address();
+      if (isAddressInfo(address))
+        process.env.PLAYWRIGHT_VITE_COMPONENTS_BASE_URL = `http://localhost:${address.port}/${relativeTemplateDir}/index.html`;
     },
 
     teardown: async () => {
diff --git a/packages/playwright-test/src/tsxTransform.ts b/packages/playwright-test/src/tsxTransform.ts
index 391f645101..77a48f1353 100644
--- a/packages/playwright-test/src/tsxTransform.ts
+++ b/packages/playwright-test/src/tsxTransform.ts
@@ -154,7 +154,7 @@ export type ComponentInfo = {
 
 export function componentInfo(specifier: T.ImportSpecifier | T.ImportDefaultSpecifier, importSource: string, filename: string): ComponentInfo {
   const isModuleOrAlias = !importSource.startsWith('.');
-  const importPath = isModuleOrAlias ? importSource : path.resolve(path.dirname(filename), importSource);
+  const importPath = isModuleOrAlias ? importSource : require.resolve(path.resolve(path.dirname(filename), importSource));
   const prefix = importPath.replace(/[^\w_\d]/g, '_');
   const pathInfo = { importPath, isModuleOrAlias };
 
diff --git a/tests/playwright-test/playwright.ct-build.spec.ts b/tests/playwright-test/playwright.ct-build.spec.ts
new file mode 100644
index 0000000000..7c78201722
--- /dev/null
+++ b/tests/playwright-test/playwright.ct-build.spec.ts
@@ -0,0 +1,270 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { test, expect, stripAnsi } from './playwright-test-fixtures';
+import fs from 'fs';
+import path from 'path';
+
+test.describe.configure({ mode: 'parallel' });
+
+test('should work with the empty component list', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'playwright/index.html': `<script type="module" src="/playwright/index.js"></script>`,
+    'playwright/index.js': ``,
+
+    'a.test.ts': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      test('pass', async ({ mount }) => {});
+    `,
+  }, { workers: 1 });
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+  const output = stripAnsi(result.output);
+  expect(output).toContain('transforming...');
+  expect(output).toContain(path.join('playwright', '.cache', 'playwright', 'index.html'));
+
+  const metainfo = JSON.parse(fs.readFileSync(testInfo.outputPath('playwright/.cache/metainfo.json'), 'utf-8'));
+  expect(metainfo.version).toEqual(expect.any(Number));
+  expect(Object.entries(metainfo.tests)).toHaveLength(1);
+  expect(Object.entries(metainfo.sources)).toHaveLength(9);
+});
+
+test('should extract component list', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'playwright/index.html': `<script type="module" src="/playwright/index.ts"></script>`,
+    'playwright/index.ts': ``,
+
+    'src/button.tsx': `
+      export const Button = () => <button>Button</button>;
+    `,
+
+    'src/components.tsx': `
+      export const Component1 = () => <div>Component 1</div>;
+      export const Component2 = () => <div>Component 2</div>;
+    `,
+
+    'src/defaultExport.tsx': `
+      export default () => <div>Default export</div>;
+    `,
+
+    'src/clashingNames1.tsx': `
+      export const ClashingName = () => <div>Clashing name 1</div>;
+    `,
+
+    'src/clashingNames2.tsx': `
+      export const ClashingName = () => <div>Clashing name 2</div>;
+    `,
+
+    'src/one-import.spec.tsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      import { Button } from './button';
+      test('pass', async ({ mount }) => {
+        const component = await mount(<Button></Button>);
+        await expect(component).toHaveText('Button');
+      });
+    `,
+
+    'src/named-imports.spec.tsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      import { Component1, Component2 } from './components';
+
+      test('pass 1', async ({ mount }) => {
+        const component = await mount(<Component1></Component1>);
+        await expect(component).toHaveText('Component 1');
+      });
+
+      test('pass 2', async ({ mount }) => {
+        const component = await mount(<Component2></Component2>);
+        await expect(component).toHaveText('Component 2');
+      });
+    `,
+
+    'src/default-import.spec.tsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      import DefaultComponent from './defaultExport';
+
+      test('named', async ({ mount }) => {
+        const component = await mount(<DefaultComponent></DefaultComponent>);
+        await expect(component).toHaveText('Default export');
+      });
+    `,
+
+    'src/clashing-imports.spec.tsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+
+      import DefaultComponent from './defaultExport.tsx';
+      import { ClashingName as CN1 } from './clashingNames1';
+      import { ClashingName as CN2 } from './clashingNames2';
+
+      test('named', async ({ mount }) => {
+        const component = await mount(<CN1></CN1>);
+        await expect(component).toHaveText('Clashing name 1');
+      });
+
+      test('pass 2', async ({ mount }) => {
+        const component = await mount(<CN2></CN2>);
+        await expect(component).toHaveText('Clashing name 2');
+      });
+    `,
+  }, { workers: 1 });
+  expect(result.exitCode).toBe(0);
+
+  const metainfo = JSON.parse(fs.readFileSync(testInfo.outputPath('playwright/.cache/metainfo.json'), 'utf-8'));
+  metainfo.components.sort((a, b) => {
+    return (a.importPath + '/' + a.importedName).localeCompare(b.importPath + '/' + b.importedName);
+  });
+
+  expect(metainfo.components).toEqual([{
+    fullName: expect.stringContaining('playwright_test_src_button_tsx_Button'),
+    importedName: 'Button',
+    importPath: expect.stringContaining('button.tsx'),
+    isModuleOrAlias: false
+  }, {
+    fullName: expect.stringContaining('playwright_test_src_clashingNames1_tsx_ClashingName'),
+    importedName: 'ClashingName',
+    importPath: expect.stringContaining('clashingNames1.tsx'),
+    isModuleOrAlias: false
+  }, {
+    fullName: expect.stringContaining('playwright_test_src_clashingNames2_tsx_ClashingName'),
+    importedName: 'ClashingName',
+    importPath: expect.stringContaining('clashingNames2.tsx'),
+    isModuleOrAlias: false
+  }, {
+    fullName: expect.stringContaining('playwright_test_src_components_tsx_Component1'),
+    importedName: 'Component1',
+    importPath: expect.stringContaining('components.tsx'),
+    isModuleOrAlias: false
+  }, {
+    fullName: expect.stringContaining('playwright_test_src_components_tsx_Component2'),
+    importedName: 'Component2',
+    importPath: expect.stringContaining('components.tsx'),
+    isModuleOrAlias: false
+  }, {
+    fullName: expect.stringContaining('playwright_test_src_defaultExport_tsx'),
+    importPath: expect.stringContaining('defaultExport.tsx'),
+    isModuleOrAlias: false
+  }]);
+
+  for (const [file, test] of Object.entries(metainfo.tests)) {
+    if (file.endsWith('clashing-imports.spec.tsx')) {
+      expect(test).toEqual({
+        timestamp: expect.any(Number),
+        components: [
+          expect.stringContaining('clashingNames1_tsx_ClashingName'),
+          expect.stringContaining('clashingNames2_tsx_ClashingName'),
+        ]
+      });
+    }
+    if (file.endsWith('default-import.spec.tsx')) {
+      expect(test).toEqual({
+        timestamp: expect.any(Number),
+        components: [
+          expect.stringContaining('defaultExport_tsx'),
+        ]
+      });
+    }
+    if (file.endsWith('named-imports.spec.tsx')) {
+      expect(test).toEqual({
+        timestamp: expect.any(Number),
+        components: [
+          expect.stringContaining('components_tsx_Component1'),
+          expect.stringContaining('components_tsx_Component2'),
+        ]
+      });
+    }
+    if (file.endsWith('one-import.spec.tsx')) {
+      expect(test).toEqual({
+        timestamp: expect.any(Number),
+        components: [
+          expect.stringContaining('button_tsx_Button'),
+        ]
+      });
+    }
+  }
+});
+
+test('should cache build', async ({ runInlineTest }, testInfo) => {
+  await test.step('original test', async () => {
+    const result = await runInlineTest({
+      'playwright/index.html': `<script type="module" src="/playwright/index.ts"></script>`,
+      'playwright/index.ts': ``,
+
+      'src/button.tsx': `
+        export const Button = () => <button>Button</button>;
+      `,
+
+      'src/button.test.tsx': `
+        //@no-header
+        import { test, expect } from '@playwright/experimental-ct-react';
+        import { Button } from './button.tsx';
+
+        test('pass', async ({ mount }) => {
+          const component = await mount(<Button></Button>);
+          await expect(component).toHaveText('Button');
+        });
+      `,
+    }, { workers: 1 });
+
+    expect(result.exitCode).toBe(0);
+    expect(result.passed).toBe(1);
+    const output = stripAnsi(result.output);
+    expect(output, 'should rebuild bundle').toContain('modules transformed');
+  });
+
+  await test.step('re-run same test', async () => {
+    const result = await runInlineTest({}, { workers: 1 });
+    expect(result.exitCode).toBe(0);
+    expect(result.passed).toBe(1);
+    const output = stripAnsi(result.output);
+    expect(output, 'should not rebuild bundle').not.toContain('modules transformed');
+  });
+
+  await test.step('modify test', async () => {
+    const result = await runInlineTest({
+      'src/button.test.tsx': `
+        //@no-header
+        import { test, expect } from '@playwright/experimental-ct-react';
+        import { Button } from './button.tsx';
+
+        test('pass updated', async ({ mount }) => {
+          const component = await mount(<Button></Button>);
+          await expect(component).toHaveText('Button 2', { timeout: 200 });
+        });
+      `,
+    }, { workers: 1 });
+    expect(result.exitCode).toBe(1);
+    expect(result.passed).toBe(0);
+    const output = stripAnsi(result.output);
+    expect(output, 'should not rebuild bundle').not.toContain('modules transformed');
+  });
+
+  await test.step('modify source', async () => {
+    const result = await runInlineTest({
+      'src/button.tsx': `
+        export const Button = () => <button>Button 2</button>;
+      `,
+    }, { workers: 1 });
+    expect(result.exitCode).toBe(0);
+    expect(result.passed).toBe(1);
+    const output = stripAnsi(result.output);
+    expect(output, 'should rebuild bundle').toContain('modules transformed');
+  });
+});
diff --git a/tests/playwright-test/playwright.ct-react.spec.ts b/tests/playwright-test/playwright.ct-react.spec.ts
new file mode 100644
index 0000000000..6523e3a293
--- /dev/null
+++ b/tests/playwright-test/playwright.ct-react.spec.ts
@@ -0,0 +1,91 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { test, expect } from './playwright-test-fixtures';
+
+test('should work with TSX', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'playwright/index.html': `<script type="module" src="/playwright/index.ts"></script>`,
+    'playwright/index.ts': ``,
+    'src/button.tsx': `
+      export const Button = () => <button>Button</button>;
+    `,
+
+    'src/button.test.tsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      import { Button } from './button';
+
+      test('pass', async ({ mount }) => {
+        const component = await mount(<Button></Button>);
+        await expect(component).toHaveText('Button');
+      });
+    `,
+  }, { workers: 1 });
+
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+});
+
+test.fixme('should work with JSX', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'playwright/index.html': `<script type="module" src="/playwright/index.js"></script>`,
+    'playwright/index.js': ``,
+
+    'src/button.jsx': `
+      export const Button = () => <button>Button</button>;
+    `,
+
+    'src/button.test.jsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      import { Button } from './button';
+
+      test('pass', async ({ mount }) => {
+        const component = await mount(<Button></Button>);
+        await expect(component).toHaveText('Button');
+      });
+    `,
+  }, { workers: 1 });
+
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+});
+
+test.fixme('should work with JS in JSX', async ({ runInlineTest }, testInfo) => {
+  const result = await runInlineTest({
+    'playwright/index.html': `<script type="module" src="/playwright/index.js"></script>`,
+    'playwright/index.js': ``,
+
+    'src/button.js': `
+      export const Button = () => <button>Button</button>;
+    `,
+
+    'src/button.test.jsx': `
+      //@no-header
+      import { test, expect } from '@playwright/experimental-ct-react';
+      import { Button } from './button';
+
+      test('pass', async ({ mount }) => {
+        const component = await mount(<Button></Button>);
+        await expect(component).toHaveText('Button');
+      });
+    `,
+  }, { workers: 1 });
+
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+});