diff --git a/packages/playwright/src/index.ts b/packages/playwright/src/index.ts
index dabfa5f357..9b88af9251 100644
--- a/packages/playwright/src/index.ts
+++ b/packages/playwright/src/index.ts
@@ -487,6 +487,7 @@ function attachConnectedHeaderIfNeeded(testInfo: TestInfo, browser: Browser | nu
 const kTracingStarted = Symbol('kTracingStarted');
 const kIsReusedContext = Symbol('kReusedContext');
 const kStartedContextTearDown = Symbol('kStartedContextTearDown');
+let traceOrdinal = 0;
 
 function connectOptionsFromEnv() {
   const wsEndpoint = process.env.PW_TEST_CONNECT_WS_ENDPOINT;
@@ -512,7 +513,6 @@ class ArtifactsRecorder {
   private _temporaryTraceFiles: string[] = [];
   private _temporaryScreenshots: string[] = [];
   private _reusedContexts = new Set<BrowserContext>();
-  private _traceOrdinal = 0;
   private _screenshotOrdinal = 0;
   private _screenshottedSymbol: symbol;
   private _startedCollectingArtifacts: symbol;
@@ -693,9 +693,10 @@ class ArtifactsRecorder {
   private async _startTraceChunkOnContextCreation(tracing: Tracing) {
     if (this._captureTrace) {
       const title = [path.relative(this._testInfo.project.testDir, this._testInfo.file) + ':' + this._testInfo.line, ...this._testInfo.titlePath.slice(1)].join(' › ');
-      const ordinalSuffix = this._traceOrdinal ? `-context${this._traceOrdinal}` : '';
-      ++this._traceOrdinal;
+      const ordinalSuffix = traceOrdinal ? `-context${traceOrdinal}` : '';
+      ++traceOrdinal;
       const retrySuffix = this._testInfo.retry ? `-retry${this._testInfo.retry}` : '';
+      // Note that trace name must start with testId for live tracing to work.
       const name = `${this._testInfo.testId}${retrySuffix}${ordinalSuffix}`;
       if (!(tracing as any)[kTracingStarted]) {
         await tracing.start({ ...this._traceOptions, title, name });
diff --git a/tests/playwright-test/playwright.spec.ts b/tests/playwright-test/playwright.spec.ts
index e77428b069..691149a8c1 100644
--- a/tests/playwright-test/playwright.spec.ts
+++ b/tests/playwright-test/playwright.spec.ts
@@ -801,3 +801,56 @@ test('should use actionTimeout for APIRequestContext', async ({ runInlineTest, s
   expect(result.exitCode).toBe(0);
   expect(result.passed).toBe(3);
 });
+
+test('should save trace in two APIRequestContexts', async ({ runInlineTest, server }) => {
+  const result = await runInlineTest({
+    'playwright.config.js': `
+      module.exports = {
+        timeout: 5000,
+        use: {
+          trace: 'on',
+        }
+      };
+    `,
+    'a.test.ts': `
+      import { test, request, BrowserContext, Page, APIRequestContext } from '@playwright/test';
+
+      test.describe('Example', () => {
+        let firstContext: APIRequestContext;
+        let secondContext: APIRequestContext;
+        let context: BrowserContext;
+        let page: Page;
+
+        test.beforeAll(async () => {
+          firstContext = await request.newContext({ baseURL: 'http://example.com' });
+          secondContext = await request.newContext({ baseURL: 'http://example.com' });
+        });
+
+        test.afterAll(async () => {
+          console.log('afterAll start');
+          await firstContext.dispose();
+          console.log('afterAll middle');
+          await secondContext.dispose();
+          console.log('afterAll end');
+        });
+
+        test.describe('inner tests', () => {
+          test.beforeAll(async ({ browser }) => {
+            context = await browser.newContext();
+            page = await context.newPage();
+            await page.goto('${server.EMPTY_PAGE}');
+          });
+
+          test.afterAll(async () => {
+            await page.close();
+            await context.close();
+          });
+
+          test('test', async () => {});
+        });
+      })
+    `,
+  }, { workers: 1 });
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+});