diff --git a/src/test/workerRunner.ts b/src/test/workerRunner.ts
index cb10388e6a..ad3edbba59 100644
--- a/src/test/workerRunner.ts
+++ b/src/test/workerRunner.ts
@@ -162,7 +162,8 @@ export class WorkerRunner extends EventEmitter {
       // TODO: separate timeout for beforeAll modifiers?
       const result = await raceAgainstDeadline(this._fixtureRunner.resolveParametersAndRunHookOrTest(beforeAllModifier.fn, this._workerInfo, undefined), this._deadline());
       if (result.timedOut) {
-        this._fatalError = serializeError(new Error(`Timeout of ${this._project.config.timeout}ms exceeded while running ${beforeAllModifier.type} modifier`));
+        if (!this._fatalError)
+          this._fatalError = serializeError(new Error(`Timeout of ${this._project.config.timeout}ms exceeded while running ${beforeAllModifier.type} modifier`));
         this.stop();
       }
       if (!!result.result)
@@ -375,7 +376,7 @@ export class WorkerRunner extends EventEmitter {
     if (testInfo.status !== 'passed' && testInfo.status !== 'skipped') {
       if (test._type === 'test')
         this._failedTestId = testId;
-      else
+      else if (!this._fatalError)
         this._fatalError = testInfo.error;
       this.stop();
     }
diff --git a/tests/playwright-test/hooks.spec.ts b/tests/playwright-test/hooks.spec.ts
index e9a17c20b7..e47121fcc1 100644
--- a/tests/playwright-test/hooks.spec.ts
+++ b/tests/playwright-test/hooks.spec.ts
@@ -401,3 +401,22 @@ test('afterEach failure should not prevent afterAll', async ({ runInlineTest })
     '%%afterAll',
   ]);
 });
+
+test('afterAll error should not mask beforeAll', async ({ runInlineTest }) => {
+  const result = await runInlineTest({
+    'a.test.js': `
+      const { test } = pwt;
+      test.beforeAll(() => {
+        throw new Error('from beforeAll');
+      });
+      test.afterAll(() => {
+        throw new Error('from afterAll');
+      })
+      test('test', () => {
+      });
+    `,
+  });
+  expect(result.exitCode).toBe(1);
+  expect(result.failed).toBe(1);
+  expect(result.output).toContain('from beforeAll');
+});