diff --git a/packages/playwright-test/src/runner/uiMode.ts b/packages/playwright-test/src/runner/uiMode.ts
index 3ee6fd6c8d..2395eb58be 100644
--- a/packages/playwright-test/src/runner/uiMode.ts
+++ b/packages/playwright-test/src/runner/uiMode.ts
@@ -36,6 +36,7 @@ class UIMode {
   globalCleanup: (() => Promise<FullResult['status']>) | undefined;
   private _watcher: FSWatcher | undefined;
   private _watchTestFile: string | undefined;
+  private _originalStderr: (buffer: string | Uint8Array) => void;
 
   constructor(config: FullConfigInternal) {
     this._config = config;
@@ -44,6 +45,15 @@ class UIMode {
       p.retries = 0;
     config._internal.configCLIOverrides.use = config._internal.configCLIOverrides.use || {};
     config._internal.configCLIOverrides.use.trace = 'on';
+    this._originalStderr = process.stderr.write.bind(process.stderr);
+    process.stdout.write = (chunk: string | Buffer) => {
+      this._dispatchEvent({ method: 'stdio', params: chunkToPayload('stdout', chunk) });
+      return true;
+    };
+    process.stderr.write = (chunk: string | Buffer) => {
+      this._dispatchEvent({ method: 'stdio', params: chunkToPayload('stderr', chunk) });
+      return true;
+    };
   }
 
   async runGlobalSetup(): Promise<FullResult['status']> {
@@ -78,6 +88,12 @@ class UIMode {
         this._stopTests();
       if (method === 'watch')
         this._watchFile(params.fileName);
+      if (method === 'resizeTerminal') {
+        process.stdout.columns = params.cols;
+        process.stdout.rows = params.rows;
+        process.stderr.columns = params.cols;
+        process.stderr.columns = params.rows;
+      }
       if (method === 'exit')
         exitPromise.resolve();
     });
@@ -86,7 +102,7 @@ class UIMode {
 
   private _dispatchEvent(message: any) {
     // eslint-disable-next-line no-console
-    this._page.mainFrame().evaluateExpression(dispatchFuncSource, true, message).catch(e => console.log(e));
+    this._page.mainFrame().evaluateExpression(dispatchFuncSource, true, message).catch(e => this._originalStderr(String(e)));
   }
 
   private async _listTests() {
@@ -156,3 +172,15 @@ export async function runUIMode(config: FullConfigInternal): Promise<FullResult[
   await uiMode.showUI();
   return await uiMode.globalCleanup?.() || 'passed';
 }
+
+type StdioPayload = {
+  type: 'stdout' | 'stderr';
+  text?: string;
+  buffer?: string;
+};
+
+function chunkToPayload(type: 'stdout' | 'stderr', chunk: Buffer | string): StdioPayload {
+  if (chunk instanceof Buffer)
+    return { type, buffer: chunk.toString('base64') };
+  return { type, text: chunk };
+}
diff --git a/packages/trace-viewer/src/ui/watchMode.css b/packages/trace-viewer/src/ui/watchMode.css
index 404a44282f..d665369214 100644
--- a/packages/trace-viewer/src/ui/watchMode.css
+++ b/packages/trace-viewer/src/ui/watchMode.css
@@ -51,15 +51,12 @@
   margin: 5px;
 }
 
-.watch-mode-sidebar .spacer {
-  flex: auto;
-}
-
-.watch-mode-sidebar .status-line {
+.status-line {
   flex: none;
-  border-top: 1px solid var(--vscode-panel-border);
   line-height: 22px;
   padding: 0 10px;
+  color: var(--vscode-statusBar-foreground);
+  background-color: var(--vscode-statusBar-background);
 }
 
 .list-view-entry:not(.selected):not(.highlighted) .toolbar-button {
diff --git a/packages/trace-viewer/src/ui/watchMode.tsx b/packages/trace-viewer/src/ui/watchMode.tsx
index caa105bf19..02b20d4f2b 100644
--- a/packages/trace-viewer/src/ui/watchMode.tsx
+++ b/packages/trace-viewer/src/ui/watchMode.tsx
@@ -29,12 +29,21 @@ import { Toolbar } from '@web/components/toolbar';
 import { toggleTheme } from '@web/theme';
 import type { ContextEntry } from '../entries';
 import type * as trace from '@trace/trace';
+import type { XtermDataSource } from '@web/components/xtermWrapper';
+import { XtermWrapper } from '@web/components/xtermWrapper';
 
 let updateRootSuite: (rootSuite: Suite, progress: Progress) => void = () => {};
 let updateStepsProgress: () => void = () => {};
 let runWatchedTests = () => {};
 let runVisibleTests = () => {};
 
+const xtermDataSource: XtermDataSource = {
+  pending: [],
+  clear: () => {},
+  write: data => xtermDataSource.pending.push(data),
+  resize: (cols: number, rows: number) => sendMessageNoReply('resizeTerminal', { cols, rows }),
+};
+
 export const WatchModeView: React.FC<{}> = ({
 }) => {
   const [projectNames, setProjectNames] = React.useState<string[]>([]);
@@ -64,54 +73,31 @@ export const WatchModeView: React.FC<{}> = ({
       setProjectNames([rootSuite.value?.suites[0].title]);
   }, [projectNames, rootSuite]);
 
-  return <SplitView sidebarSize={300} orientation='horizontal' sidebarIsFirst={true}>
-    <TraceView testItem={selectedTestItem}></TraceView>
-    <div className='vbox watch-mode-sidebar'>
-      <Toolbar>
-        <div className='section-title' style={{ cursor: 'pointer' }} onClick={() => setSettingsVisible(false)}>Tests</div>
-        <ToolbarButton icon='play' title='Run' onClick={runVisibleTests} disabled={isRunningTest}></ToolbarButton>
-        <ToolbarButton icon='debug-stop' title='Stop' onClick={() => sendMessageNoReply('stop')} disabled={!isRunningTest}></ToolbarButton>
-        <ToolbarButton icon='refresh' title='Reload' onClick={resetCollectingRootSuite} disabled={isRunningTest}></ToolbarButton>
-        <div className='spacer'></div>
-        <ToolbarButton icon='gear' title='Toggle color mode' toggled={settingsVisible} onClick={() => { setSettingsVisible(!settingsVisible); }}></ToolbarButton>
-      </Toolbar>
-      { !settingsVisible && <TestList
-        projectNames={projectNames}
-        rootSuite={rootSuite}
-        isRunningTest={isRunningTest}
-        runTests={runTests}
-        onTestItemSelected={setSelectedTestItem} />}
-      { settingsVisible && <div className='vbox'>
-        <div className='hbox' style={{ flex: 'none' }}>
-          <div className='section-title' style={{ marginTop: 10 }}>Projects</div>
+  return <div className='vbox'>
+    <SplitView sidebarSize={250} orientation='horizontal' sidebarIsFirst={true}>
+      <TraceView testItem={selectedTestItem}></TraceView>
+      <div className='vbox watch-mode-sidebar'>
+        <Toolbar>
+          <div className='section-title' style={{ cursor: 'pointer' }} onClick={() => setSettingsVisible(false)}>Tests</div>
+          <ToolbarButton icon='play' title='Run' onClick={runVisibleTests} disabled={isRunningTest}></ToolbarButton>
+          <ToolbarButton icon='debug-stop' title='Stop' onClick={() => sendMessageNoReply('stop')} disabled={!isRunningTest}></ToolbarButton>
+          <ToolbarButton icon='refresh' title='Reload' onClick={resetCollectingRootSuite} disabled={isRunningTest}></ToolbarButton>
           <div className='spacer'></div>
-          <ToolbarButton icon='close' title='Close settings' toggled={false} onClick={() => setSettingsVisible(false)}></ToolbarButton>
-        </div>
-        {(rootSuite.value?.suites || []).map(suite => {
-          return <div style={{ display: 'flex', alignItems: 'center', lineHeight: '24px' }}>
-            <input id={`project-${suite.title}`} type='checkbox' checked={projectNames.includes(suite.title)} onClick={() => {
-              const copy = [...projectNames];
-              if (copy.includes(suite.title))
-                copy.splice(copy.indexOf(suite.title), 1);
-              else
-                copy.push(suite.title);
-              setProjectNames(copy);
-            }} style={{ margin: '0 5px 0 10px' }} />
-            <label htmlFor={`project-${suite.title}`}>
-              {suite.title}
-            </label>
-          </div>;
-        })}
-        <div className='section-title'>Appearance</div>
-        <div style={{ marginLeft: 3 }}>
-          <ToolbarButton icon='color-mode' title='Toggle color mode' toggled={false} onClick={() => toggleTheme()}>Toggle color mode</ToolbarButton>
-        </div>
-      </div>}
-      {isRunningTest && <div className='status-line'>
+          <ToolbarButton icon='gear' title='Toggle color mode' toggled={settingsVisible} onClick={() => { setSettingsVisible(!settingsVisible); }}></ToolbarButton>
+        </Toolbar>
+        { !settingsVisible && <TestList
+          projectNames={projectNames}
+          rootSuite={rootSuite}
+          isRunningTest={isRunningTest}
+          runTests={runTests}
+          onTestItemSelected={setSelectedTestItem} />}
+        {settingsVisible && <SettingsView projectNames={projectNames} setProjectNames={setProjectNames} onClose={() => setSettingsVisible(false)}></SettingsView>}
+      </div>
+    </SplitView>
+    <div className='status-line'>
         Running: {progress.total} tests | {progress.passed} passed | {progress.failed} failed
-      </div>}
     </div>
-  </SplitView>;
+  </div>;
 };
 
 export const TestList: React.FC<{
@@ -243,7 +229,40 @@ export const TestList: React.FC<{
           expandedItems.set(treeItem.id, true);
         setExpandedItems(new Map(expandedItems));
       }}
-      noItemsMessage='No tests' />;
+      noItemsMessage='No tests' />
+  </div>;
+};
+
+export const SettingsView: React.FC<{
+  projectNames: string[],
+  setProjectNames: (projectNames: string[]) => void,
+  onClose: () => void,
+}> = ({ projectNames, setProjectNames, onClose }) => {
+  return <div className='vbox'>
+    <div className='hbox' style={{ flex: 'none' }}>
+      <div className='section-title' style={{ marginTop: 10 }}>Projects</div>
+      <div className='spacer'></div>
+      <ToolbarButton icon='close' title='Close settings' toggled={false} onClick={onClose}></ToolbarButton>
+    </div>
+    {projectNames.map(projectName => {
+      return <div style={{ display: 'flex', alignItems: 'center', lineHeight: '24px' }}>
+        <input id={`project-${projectName}`} type='checkbox' checked={projectNames.includes(projectName)} onClick={() => {
+          const copy = [...projectNames];
+          if (copy.includes(projectName))
+            copy.splice(copy.indexOf(projectName), 1);
+          else
+            copy.push(projectName);
+          setProjectNames(copy);
+        }} style={{ margin: '0 5px 0 10px' }} />
+        <label htmlFor={`project-${projectName}`}>
+          {projectName}
+        </label>
+      </div>;
+    })}
+    <div className='section-title'>Appearance</div>
+    <div style={{ marginLeft: 3 }}>
+      <ToolbarButton icon='color-mode' title='Toggle color mode' toggled={false} onClick={() => toggleTheme()}>Toggle color mode</ToolbarButton>
+    </div>
   </div>;
 };
 
@@ -274,7 +293,10 @@ export const TraceView: React.FC<{
     })();
   }, [testItem, stepsProgress]);
 
-  return <Workbench model={model}/>;
+  const xterm = <XtermWrapper source={xtermDataSource}></XtermWrapper>;
+  return <Workbench model={model} output={xterm} rightToolbar={[
+    <ToolbarButton icon='trash' title='Clear output' onClick={() => xtermDataSource.clear()}></ToolbarButton>,
+  ]}/>;
 };
 
 declare global {
@@ -325,10 +347,18 @@ const resetCollectingRootSuite = () => {
 };
 
 (window as any).dispatch = (message: any) => {
-  if (message.method === 'fileChanged')
+  if (message.method === 'fileChanged') {
     runWatchedTests();
-  else
+  } else if (message.method === 'stdio') {
+    if (message.params.buffer) {
+      const data = atob(message.params.buffer);
+      xtermDataSource.write(data);
+    } else {
+      xtermDataSource.write(message.params.text);
+    }
+  } else {
     receiver?.dispatch(message);
+  }
 };
 
 const sendMessage = async (method: string, params: any) => {
diff --git a/packages/trace-viewer/src/ui/workbench.css b/packages/trace-viewer/src/ui/workbench.css
index 384dd26564..38d2289e52 100644
--- a/packages/trace-viewer/src/ui/workbench.css
+++ b/packages/trace-viewer/src/ui/workbench.css
@@ -103,7 +103,3 @@
 .workbench .header .title {
   margin-left: 16px;
 }
-
-.workbench .spacer {
-  flex: auto;
-}
diff --git a/packages/trace-viewer/src/ui/workbench.tsx b/packages/trace-viewer/src/ui/workbench.tsx
index aaa60c360c..7c906abe6f 100644
--- a/packages/trace-viewer/src/ui/workbench.tsx
+++ b/packages/trace-viewer/src/ui/workbench.tsx
@@ -26,17 +26,20 @@ import { NetworkTab } from './networkTab';
 import { SnapshotTab } from './snapshotTab';
 import { SourceTab } from './sourceTab';
 import { TabbedPane } from '@web/components/tabbedPane';
+import type { TabbedPaneTabModel } from '@web/components/tabbedPane';
 import { Timeline } from './timeline';
 import './workbench.css';
 import { MetadataView } from './metadataView';
 
 export const Workbench: React.FunctionComponent<{
   model?: MultiTraceModel,
-}> = ({ model }) => {
+  output?: React.ReactElement,
+  rightToolbar?: React.ReactElement[],
+}> = ({ model, output, rightToolbar }) => {
   const [selectedAction, setSelectedAction] = React.useState<ActionTraceEvent | undefined>();
   const [highlightedAction, setHighlightedAction] = React.useState<ActionTraceEvent | undefined>();
   const [selectedNavigatorTab, setSelectedNavigatorTab] = React.useState<string>('actions');
-  const [selectedPropertiesTab, setSelectedPropertiesTab] = React.useState<string>('logs');
+  const [selectedPropertiesTab, setSelectedPropertiesTab] = React.useState<string>(output ? 'output' : 'call');
   const activeAction = model ? highlightedAction || selectedAction : undefined;
 
   const { errors, warnings } = activeAction ? modelUtil.stats(activeAction) : { errors: 0, warnings: 0 };
@@ -44,14 +47,15 @@ export const Workbench: React.FunctionComponent<{
   const networkCount = activeAction ? modelUtil.resourcesForAction(activeAction).length : 0;
   const sdkLanguage = model?.sdkLanguage || 'javascript';
 
-  const tabs = [
-    { id: 'logs', title: 'Call', count: 0, render: () => <CallTab action={activeAction} sdkLanguage={sdkLanguage} /> },
+  const tabs: TabbedPaneTabModel[] = [
+    { id: 'call', title: 'Call', render: () => <CallTab action={activeAction} sdkLanguage={sdkLanguage} /> },
     { id: 'console', title: 'Console', count: consoleCount, render: () => <ConsoleTab action={activeAction} /> },
     { id: 'network', title: 'Network', count: networkCount, render: () => <NetworkTab action={activeAction} /> },
+    { id: 'source', title: 'Source', count: 0, render: () => <SourceTab action={activeAction} /> },
   ];
 
-  if (model?.hasSource)
-    tabs.push({ id: 'source', title: 'Source', count: 0, render: () => <SourceTab action={activeAction} /> });
+  if (output)
+    tabs.unshift({ id: 'output', title: 'Output', component: output });
 
   return <div className='vbox'>
     <Timeline
@@ -59,38 +63,38 @@ export const Workbench: React.FunctionComponent<{
       selectedAction={activeAction}
       onSelected={action => setSelectedAction(action)}
     />
-    <SplitView sidebarSize={300} orientation='horizontal' sidebarIsFirst={true}>
-      <SplitView sidebarSize={300} orientation='vertical'>
+    <SplitView sidebarSize={output ? 250 : 350} orientation={output ? 'vertical' : 'horizontal'}>
+      <SplitView sidebarSize={250} orientation='horizontal' sidebarIsFirst={true}>
         <SnapshotTab action={activeAction} sdkLanguage={sdkLanguage} testIdAttributeName={model?.testIdAttributeName || 'data-testid'} />
-        <TabbedPane tabs={tabs} selectedTab={selectedPropertiesTab} setSelectedTab={setSelectedPropertiesTab}/>
+        <TabbedPane tabs={
+          [
+            {
+              id: 'actions',
+              title: 'Actions',
+              count: 0,
+              component: <ActionList
+                sdkLanguage={sdkLanguage}
+                actions={model?.actions || []}
+                selectedAction={model ? selectedAction : undefined}
+                onSelected={action => {
+                  setSelectedAction(action);
+                }}
+                onHighlighted={action => {
+                  setHighlightedAction(action);
+                }}
+                revealConsole={() => setSelectedPropertiesTab('console')}
+              />
+            },
+            {
+              id: 'metadata',
+              title: 'Metadata',
+              count: 0,
+              component: <MetadataView model={model}/>
+            },
+          ]
+        } selectedTab={selectedNavigatorTab} setSelectedTab={setSelectedNavigatorTab}/>
       </SplitView>
-      <TabbedPane tabs={
-        [
-          {
-            id: 'actions',
-            title: 'Actions',
-            count: 0,
-            component: <ActionList
-              sdkLanguage={sdkLanguage}
-              actions={model?.actions || []}
-              selectedAction={model ? selectedAction : undefined}
-              onSelected={action => {
-                setSelectedAction(action);
-              }}
-              onHighlighted={action => {
-                setHighlightedAction(action);
-              }}
-              revealConsole={() => setSelectedPropertiesTab('console')}
-            />
-          },
-          {
-            id: 'metadata',
-            title: 'Metadata',
-            count: 0,
-            component: <MetadataView model={model}/>
-          },
-        ]
-      } selectedTab={selectedNavigatorTab} setSelectedTab={setSelectedNavigatorTab}/>
+      <TabbedPane tabs={tabs} selectedTab={selectedPropertiesTab} setSelectedTab={setSelectedPropertiesTab} rightToolbar={rightToolbar}/>
     </SplitView>
   </div>;
 };
diff --git a/packages/web/src/common.css b/packages/web/src/common.css
index d15a5350de..83718ccc49 100644
--- a/packages/web/src/common.css
+++ b/packages/web/src/common.css
@@ -97,6 +97,10 @@ svg {
   position: relative;
 }
 
+.spacer {
+  flex: auto;
+}
+
 .codicon-check {
   color: var(--green);
 }
diff --git a/packages/web/src/components/listView.tsx b/packages/web/src/components/listView.tsx
index 045b0cd740..5b809e1147 100644
--- a/packages/web/src/components/listView.tsx
+++ b/packages/web/src/components/listView.tsx
@@ -161,7 +161,11 @@ const ListItemView: React.FC<{
     ref={divRef}
   >
     {indent ? <div style={{ minWidth: indent * 16 }}></div> : undefined}
-    {hasIcons && <div className={'codicon ' + (icon || 'blank')} style={{ minWidth: 16, marginRight: 4 }} onClick={onIconClicked}></div>}
+    {hasIcons && <div className={'codicon ' + (icon || 'blank')} style={{ minWidth: 16, marginRight: 4 }} onClick={e => {
+      e.stopPropagation();
+      e.preventDefault();
+      onIconClicked();
+    }}></div>}
     {typeof children === 'string' ? <div style={{ textOverflow: 'ellipsis', overflow: 'hidden' }}>{children}</div> : children}
   </div>;
 };
diff --git a/packages/web/src/components/tabbedPane.tsx b/packages/web/src/components/tabbedPane.tsx
index 7e8d89239f..a6acc36977 100644
--- a/packages/web/src/components/tabbedPane.tsx
+++ b/packages/web/src/components/tabbedPane.tsx
@@ -45,6 +45,7 @@ export const TabbedPane: React.FunctionComponent<{
             selected={selectedTab === tab.id}
             onSelect={setSelectedTab}
           ></TabbedPaneTab>)),
+        <div className='spacer'></div>,
         ...rightToolbar || [],
       ]}</Toolbar>
       {
diff --git a/packages/web/src/components/toolbar.css b/packages/web/src/components/toolbar.css
index 816c9a9f9f..9269634706 100644
--- a/packages/web/src/components/toolbar.css
+++ b/packages/web/src/components/toolbar.css
@@ -19,10 +19,11 @@
   box-shadow: var(--box-shadow);
   background-color: var(--vscode-sideBar-background);
   color: var(--vscode-sideBarTitle-foreground);
-  min-height: 32px;
+  min-height: 35px;
   align-items: center;
   flex: none;
   z-index: 2;
+  margin: 0 5px;
 }
 
 .toolbar-linewrap {
@@ -31,7 +32,7 @@
 }
 
 .toolbar input {
-  padding: 0 10px;
+  padding: 0 5px;
   line-height: 24px;
   outline: none;
   margin: 0 4px;
diff --git a/packages/web/src/components/xtermWrapper.tsx b/packages/web/src/components/xtermWrapper.tsx
index 3618dfa88a..7447c64e18 100644
--- a/packages/web/src/components/xtermWrapper.tsx
+++ b/packages/web/src/components/xtermWrapper.tsx
@@ -20,13 +20,14 @@ import type { Terminal } from 'xterm';
 import type { XtermModule } from './xtermModule';
 import { isDarkTheme } from '@web/theme';
 
-export type XTermDataSource = {
+export type XtermDataSource = {
   pending: (string | Uint8Array)[];
+  clear: () => void,
   write: (data: string | Uint8Array) => void;
   resize: (cols: number, rows: number) => void;
 };
 
-export const XTermWrapper: React.FC<{ source: XTermDataSource }> = ({
+export const XtermWrapper: React.FC<{ source: XtermDataSource }> = ({
   source
 }) => {
   const xtermElement = React.createRef<HTMLDivElement>();
@@ -55,8 +56,13 @@ export const XTermWrapper: React.FC<{ source: XTermDataSource }> = ({
       for (const p of source.pending)
         newTerminal.write(p);
       source.write = (data => {
+        source.pending.push(data);
         newTerminal.write(data);
       });
+      source.clear = () => {
+        source.pending = [];
+        newTerminal.clear();
+      };
       newTerminal.open(element);
       fitAddon.fit();
       setTerminal(newTerminal);