diff --git a/packages/playwright-core/src/server/injected/highlight.css b/packages/playwright-core/src/server/injected/highlight.css
index 938957cdeb..c159615ac8 100644
--- a/packages/playwright-core/src/server/injected/highlight.css
+++ b/packages/playwright-core/src/server/injected/highlight.css
@@ -55,17 +55,6 @@ x-pw-dialog-body {
   flex: auto;
 }
 
-x-pw-dialog-body label {
-  margin: 10px;
-  display: flex;
-  align-items: center;
-  cursor: pointer;
-}
-
-x-pw-dialog-body input {
-  cursor: pointer;
-}
-
 x-pw-highlight {
   position: absolute;
   top: 0;
@@ -221,7 +210,7 @@ textarea.text-editor {
   font-family: system-ui, "Ubuntu", "Droid Sans", sans-serif;
   flex: auto;
   border: none;
-  margin: 10px;
+  margin: 6px;
   color: #333;
   outline: 1px solid transparent !important;
 }
@@ -252,6 +241,11 @@ x-locator-editor {
   height: 60px;
   padding: 4px;
   border-bottom: 1px solid #dddddd;
+  outline: 1px solid transparent;
+}
+
+x-locator-editor.does-not-match {
+  outline: 1px solid red;
 }
 
 .CodeMirror {
diff --git a/packages/playwright-core/src/server/injected/recorder.ts b/packages/playwright-core/src/server/injected/recorder.ts
index 242dd376f8..baca6d957b 100644
--- a/packages/playwright-core/src/server/injected/recorder.ts
+++ b/packages/playwright-core/src/server/injected/recorder.ts
@@ -572,8 +572,7 @@ class TextAssertionTool implements RecorderTool {
   }
 
   private _showDialog() {
-    const target = this._hoverHighlight?.elements[0];
-    if (!target)
+    if (!this._hoverHighlight?.elements[0])
       return;
     this._action = this._generateAction();
     if (!this._action)
@@ -616,12 +615,14 @@ class TextAssertionTool implements RecorderTool {
     cm.on('change', () => {
       if (this._action) {
         const selector = locatorOrSelectorAsSelector(this._recorder.state.language, cm.getValue(), this._recorder.state.testIdAttributeName);
-        const model: HighlightModel = {
+        const elements = this._recorder.injectedScript.querySelectorAll(parseSelector(selector), this._recorder.document);
+        cmElement.classList.toggle('does-not-match', !elements.length);
+        this._hoverHighlight = elements.length ? {
           selector,
-          elements: this._recorder.injectedScript.querySelectorAll(parseSelector(selector), this._recorder.document),
-        };
+          elements,
+        } : null;
         this._action.selector = selector;
-        this._recorder.updateHighlight(model, true);
+        this._recorder.updateHighlight(this._hoverHighlight, true);
       }
     });
 
@@ -635,6 +636,9 @@ class TextAssertionTool implements RecorderTool {
 
       const updateAndValidate = () => {
         const newValue = normalizeWhiteSpace(textElement.value);
+        const target = this._hoverHighlight?.elements[0];
+        if (!target)
+          return;
         action.text = newValue;
         const targetText = normalizeWhiteSpace(elementText(this._textCache, target).full);
         const matches = action.substring ? newValue && targetText.includes(newValue) : targetText === newValue;
@@ -678,8 +682,7 @@ class TextAssertionTool implements RecorderTool {
       checkboxElement.type = 'checkbox';
       checkboxElement.checked = action.checked;
       checkboxElement.addEventListener('change', () => {
-        if (action.name === 'assertChecked')
-          action.checked = checkboxElement.checked;
+        action.checked = checkboxElement.checked;
       });
       bodyElement.appendChild(labelElement);
       elementToFocus = labelElement;