diff --git a/packages/playwright/src/reporters/perfetto.ts b/packages/playwright/src/reporters/perfetto.ts
index 2f0f59e27ed6f..c8b2fd9766587 100644
--- a/packages/playwright/src/reporters/perfetto.ts
+++ b/packages/playwright/src/reporters/perfetto.ts
@@ -14,6 +14,7 @@
  * limitations under the License.
  */
 
+import { once } from 'events';
 import fs from 'fs';
 import path from 'path';
 import zlib from 'zlib';
@@ -298,6 +299,10 @@ class ChunkWriter {
     const gzip = file.endsWith('.gz') ? zlib.createGzip() : undefined;
     gzip?.pipe(fileStream);
     this._stream = gzip ?? fileStream;
+    // pipe() only unpipes on a destination error, so the gzip stream would never
+    // emit 'drain' or 'error' again. Destroy it to wake up the pending write.
+    if (gzip)
+      fileStream.on('error', error => gzip.destroy(error));
     // The file is only complete once the destination closes, which is later than
     // the gzip stream ending.
     this._closed = new Promise(resolve => fileStream.on('close', resolve));
@@ -309,7 +314,7 @@ class ChunkWriter {
     if (this._error)
       throw this._error;
     if (!this._stream.write(chunk))
-      await new Promise<void>(resolve => this._stream.once('drain', () => resolve()));
+      await once(this._stream, 'drain'); // Rejects if 'error' is emitted first.
   }
 
   async close() {
diff --git a/tests/playwright-test/reporter-perfetto.spec.ts b/tests/playwright-test/reporter-perfetto.spec.ts
index 15d230405e996..eaedea02bdaa8 100644
--- a/tests/playwright-test/reporter-perfetto.spec.ts
+++ b/tests/playwright-test/reporter-perfetto.spec.ts
@@ -14,6 +14,7 @@
  * limitations under the License.
  */
 
+import * as crypto from 'crypto';
 import * as fs from 'fs';
 import * as path from 'path';
 import * as zlib from 'zlib';
@@ -215,6 +216,25 @@ test('should report step params', async ({ runInlineTest }, testInfo) => {
   expect(findSlice(events, 'my step')!.args.params).toEqual({ foo: 'bar', count: 7 });
 });
 
+for (const fileName of ['trace.json', 'trace.json.gz']) {
+  test(`should fail when ${fileName} output is a directory`, async ({ runInlineTest }, testInfo) => {
+    const outputFile = testInfo.outputPath(fileName);
+    await fs.promises.mkdir(outputFile);
+    const result = await runInlineTest({
+      'playwright.config.ts': `
+        module.exports = { reporter: [['perfetto', { outputFile: ${JSON.stringify(outputFile)} }]] };
+      `,
+      'a.test.ts': `
+        import { test } from '@playwright/test';
+        test('one', async () => {
+          test.info().annotations.push({ type: 'blob', description: ${JSON.stringify(crypto.randomBytes(256 * 1024).toString('base64'))} });
+        });
+      `,
+    });
+    expect(result.exitCode).not.toBe(0);
+  });
+}
+
 test('should respect outputFile option', async ({ runInlineTest }, testInfo) => {
   const result = await runInlineTest({
     'playwright.config.ts': `