diff --git a/tests/playwright/src/runner/podman-desktop-runner.ts b/tests/playwright/src/runner/podman-desktop-runner.ts
index 99111f67120..f91327a63aa 100644
--- a/tests/playwright/src/runner/podman-desktop-runner.ts
+++ b/tests/playwright/src/runner/podman-desktop-runner.ts
@@ -43,6 +43,7 @@ export class PodmanDesktopRunner {
   private _autoUpdate: boolean;
   private _autoCheckUpdate: boolean;
   private _testPassed: boolean;
+  private _suitePassed: boolean;
 
   constructor({
     profile = '',
@@ -57,7 +58,8 @@ export class PodmanDesktopRunner {
     this._videoAndTraceName = undefined;
     this._autoUpdate = autoUpdate;
     this._autoCheckUpdate = autoCheckUpdate;
-    this._testPassed = true;
+    this._testPassed = false;
+    this._suitePassed = true;
 
     // Options setting always needs to be last action in constructor in order to apply settings correctly
     this._options = this.defaultOptions();
@@ -235,7 +237,7 @@ export class PodmanDesktopRunner {
       rmSync(rawTracesPath, { recursive: true, force: true, maxRetries: 5 });
     }
 
-    if (!this._testPassed || !this._videoAndTraceName) return;
+    if (!this._testPassed || !this._suitePassed || !this._videoAndTraceName) return;
 
     if (!process.env.KEEP_TRACES_ON_PASS) {
       const tracesPath = join(this._testOutput, 'traces', `${this._videoAndTraceName}_trace.zip`);
@@ -348,6 +350,10 @@ export class PodmanDesktopRunner {
     this._testPassed = value;
   }
 
+  public setSuitePassed(value: boolean): void {
+    this._suitePassed = value;
+  }
+
   public get options(): object {
     return this._options;
   }
diff --git a/tests/playwright/src/setupFiles/extended-hooks-utils.ts b/tests/playwright/src/setupFiles/extended-hooks-utils.ts
index 140a9a3bdac..12d324a951a 100644
--- a/tests/playwright/src/setupFiles/extended-hooks-utils.ts
+++ b/tests/playwright/src/setupFiles/extended-hooks-utils.ts
@@ -41,4 +41,5 @@ export async function takeScreenshotHook(runner: PodmanDesktopRunner, taskName:
   console.log(`Screenshot of the failed test will be saved to: ${fileName}`);
   await runner.screenshot(`${fileName}.png`);
   runner.setTestPassed(false);
+  runner.setSuitePassed(false);
 }
diff --git a/tests/playwright/src/setupFiles/extended-hooks.ts b/tests/playwright/src/setupFiles/extended-hooks.ts
index 0c38d2cf507..4d686d28c2b 100644
--- a/tests/playwright/src/setupFiles/extended-hooks.ts
+++ b/tests/playwright/src/setupFiles/extended-hooks.ts
@@ -16,10 +16,9 @@
  * SPDX-License-Identifier: Apache-2.0
  ***********************************************************************/
 
-import { afterEach, beforeEach, onTestFailed, onTestFinished } from 'vitest';
+import { afterEach, beforeEach, onTestFailed } from 'vitest';
 
 import type { RunnerTestContext } from '../testContext/runner-test-context';
-import { checkForFailedTest } from '../utility/operations';
 import { takeScreenshotHook } from './extended-hooks-utils';
 
 afterEach(async (context: RunnerTestContext) => {
@@ -27,5 +26,5 @@ afterEach(async (context: RunnerTestContext) => {
 });
 
 beforeEach(async (context: RunnerTestContext) => {
-  onTestFinished(results => checkForFailedTest(results, context.pdRunner));
+  context?.pdRunner?.setTestPassed(true);
 });