diff --git a/playwright/src/main/java/com/microsoft/playwright/impl/junit/BrowserContextExtension.java b/playwright/src/main/java/com/microsoft/playwright/impl/junit/BrowserContextExtension.java
index e27b1c448..695fe69cb 100644
--- a/playwright/src/main/java/com/microsoft/playwright/impl/junit/BrowserContextExtension.java
+++ b/playwright/src/main/java/com/microsoft/playwright/impl/junit/BrowserContextExtension.java
@@ -22,9 +22,12 @@
 import org.junit.jupiter.api.extension.*;
 
 import java.io.IOException;
+import java.nio.charset.StandardCharsets;
 import java.nio.file.Files;
 import java.nio.file.Path;
 import java.nio.file.Paths;
+import java.security.MessageDigest;
+import java.security.NoSuchAlgorithmException;
 
 import static com.microsoft.playwright.impl.junit.ExtensionUtils.*;
 import static com.microsoft.playwright.impl.junit.PageExtension.cleanUpPage;
@@ -130,9 +133,44 @@ private static Path getOutputPath(ExtensionContext extensionContext) {
     String outputDirName = extensionContext.getRequiredTestClass().getName() + "." +
       extensionContext.getRequiredTestMethod().getName() + "-" +
       browserType.name();
+    if (isTestTemplateInvocation(extensionContext)) {
+      // Each invocation of a parameterized or repeated test gets its own directory.
+      outputDirName += "-" + trimLongString(sanitizeForFilePath(extensionContext.getDisplayName()), 60);
+    }
     return defaultOutputPath.resolve(outputDirName);
   }
 
+  private static boolean isTestTemplateInvocation(ExtensionContext extensionContext) {
+    return extensionContext.getParent().flatMap(ExtensionContext::getTestMethod).isPresent();
+  }
+
+  private static String sanitizeForFilePath(String s) {
+    return s.replaceAll("[\\x00-\\x2C\\x2E-\\x2F\\x3A-\\x40\\x5B-\\x60\\x7B-\\x7F]+", "-");
+  }
+
+  private static String trimLongString(String s, int length) {
+    if (s.length() <= length) {
+      return s;
+    }
+    String middle = "-" + calculateSha1(s).substring(0, 5) + "-";
+    int start = (length - middle.length()) / 2;
+    int end = length - middle.length() - start;
+    return s.substring(0, start) + middle + s.substring(s.length() - end);
+  }
+
+  private static String calculateSha1(String s) {
+    try {
+      byte[] digest = MessageDigest.getInstance("SHA-1").digest(s.getBytes(StandardCharsets.UTF_8));
+      StringBuilder hex = new StringBuilder();
+      for (byte b : digest) {
+        hex.append(String.format("%02x", b));
+      }
+      return hex.toString();
+    } catch (NoSuchAlgorithmException e) {
+      throw new RuntimeException(e);
+    }
+  }
+
   private static Path getDefaultOutputPath(ExtensionContext extensionContext) {
     Options options = OptionsExtension.getOptions(extensionContext);
     Path outputPath = options.outputDir;
diff --git a/playwright/src/test/java/com/microsoft/playwright/junit/TestFixtureTraceOutputDir.java b/playwright/src/test/java/com/microsoft/playwright/junit/TestFixtureTraceOutputDir.java
new file mode 100644
index 000000000..041f0c0c2
--- /dev/null
+++ b/playwright/src/test/java/com/microsoft/playwright/junit/TestFixtureTraceOutputDir.java
@@ -0,0 +1,88 @@
+/*
+ * 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.
+ */
+
+package com.microsoft.playwright.junit;
+
+import com.microsoft.playwright.Browser;
+import com.microsoft.playwright.Page;
+import org.junit.jupiter.api.AfterAll;
+import org.junit.jupiter.api.RepeatedTest;
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.io.TempDir;
+import org.junit.jupiter.params.ParameterizedTest;
+import org.junit.jupiter.params.provider.ValueSource;
+
+import java.io.IOException;
+import java.nio.file.Files;
+import java.nio.file.Path;
+import java.util.List;
+import java.util.stream.Collectors;
+import java.util.stream.Stream;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+import static org.junit.jupiter.api.Assertions.assertTrue;
+
+@FixtureTest
+@UsePlaywright(TestFixtureTraceOutputDir.TraceOptions.class)
+public class TestFixtureTraceOutputDir {
+  @TempDir
+  static Path outputDir;
+  private static String browserName;
+
+  public static class TraceOptions implements OptionsFactory {
+    @Override
+    public Options getOptions() {
+      return new Options().setTrace(Options.Trace.ON).setOutputDir(outputDir);
+    }
+  }
+
+  @Test
+  void shouldSaveTrace(Browser browser, Page page) {
+    browserName = browser.browserType().name();
+    page.setContent("<div>test</div>");
+  }
+
+  @ParameterizedTest(name = "[{index}] {0}")
+  @ValueSource(strings = {"foo", "bar"})
+  void shouldSaveTracePerParameterizedInvocation(String value, Page page) {
+    page.setContent("<div>" + value + "</div>");
+  }
+
+  @RepeatedTest(2)
+  void shouldSaveTracePerRepetition(Page page) {
+    page.setContent("<div>repeated</div>");
+  }
+
+  @AfterAll
+  static void shouldWriteTraceOfEachInvocationToSeparateDir() throws IOException {
+    String prefix = TestFixtureTraceOutputDir.class.getName() + ".";
+    List<String> expected = Stream.of(
+      "shouldSaveTrace-" + browserName,
+      "shouldSaveTracePerParameterizedInvocation-" + browserName + "--1-foo",
+      "shouldSaveTracePerParameterizedInvocation-" + browserName + "--2-bar",
+      "shouldSaveTracePerRepetition-" + browserName + "-repetition-1-of-2",
+      "shouldSaveTracePerRepetition-" + browserName + "-repetition-2-of-2"
+    ).map(name -> prefix + name).sorted().collect(Collectors.toList());
+    List<String> actual;
+    try (Stream<Path> dirs = Files.list(outputDir)) {
+      actual = dirs.map(dir -> dir.getFileName().toString()).sorted().collect(Collectors.toList());
+    }
+    assertEquals(expected, actual);
+    for (String dir : actual) {
+      assertTrue(Files.exists(outputDir.resolve(dir).resolve("trace.zip")), dir);
+    }
+  }
+}