diff --git a/packages/playwright/src/transform/transform.ts b/packages/playwright/src/transform/transform.ts
index 076c3b59407ee..cf6a74d8aa4a0 100644
--- a/packages/playwright/src/transform/transform.ts
+++ b/packages/playwright/src/transform/transform.ts
@@ -215,7 +215,7 @@ export function transformHook(originalCode: string, filename: string, moduleUrl?
     process.env.PW_TEST_SOURCE_TRANSFORM_SCOPE &&
     process.env.PW_TEST_SOURCE_TRANSFORM_SCOPE.split(pathSeparator).some(f => filename.startsWith(f));
   const pluginsEpilogue = hasPreprocessor ? [[process.env.PW_TEST_SOURCE_TRANSFORM!]] as BabelPlugin[] : [];
-  const hash = calculateHash(originalCode, filename, !!moduleUrl, pluginsEpilogue);
+  const hash = calculateHash(originalCode, filename, !!moduleUrl, pluginsEpilogue, _transformConfig.jsxImportSource);
   const { cachedCode, addToCache, serializedCache } = cc.getFromCompilationCache(filename, hash, moduleUrl);
   if (cachedCode !== undefined)
     return { code: cachedCode, serializedCache };
@@ -233,13 +233,14 @@ export function transformHook(originalCode: string, filename: string, moduleUrl?
   return { code, serializedCache: added.serializedCache };
 }
 
-function calculateHash(content: string, filePath: string, isModule: boolean, pluginsEpilogue: BabelPlugin[]): string {
+function calculateHash(content: string, filePath: string, isModule: boolean, pluginsEpilogue: BabelPlugin[], jsxImportSource: string | undefined): string {
   const hash = crypto.createHash('sha1')
       .update(isModule ? 'esm' : 'no_esm')
       .update(content)
       .update(filePath)
       .update(version)
       .update(pluginsEpilogue.map(p => p[0]).join(','))
+      .update(jsxImportSource || '')
       .digest('hex');
   return hash;
 }
diff --git a/tests/playwright-test/cache.spec.ts b/tests/playwright-test/cache.spec.ts
index 132cf8ca6ee68..307ab16c9dc31 100644
--- a/tests/playwright-test/cache.spec.ts
+++ b/tests/playwright-test/cache.spec.ts
@@ -101,3 +101,40 @@ test('should automatically clean cached versions of a changed file', async ({ ru
   expect(finalPathHash).toBe(firstPathHash);
   expect(finalTestHash).not.toBe(firstTestHash);
 });
+
+test('should not reuse cached jsx transform after playwright moves', {
+  annotation: { type: 'issue', description: 'https://github.com/microsoft/playwright/issues/42934' },
+}, async ({ runInlineTest, writeFiles, childProcess }) => {
+  const cacheDir = test.info().outputPath('playwright-test-cache');
+  const files = {
+    'playwright.config.ts': `
+      import { defineConfig } from '@playwright/test';
+      export default defineConfig({});
+    `,
+    'a.spec.tsx': `
+      import { test, expect } from '@playwright/test';
+      const element = <div />;
+      test('jsx', () => { expect(element).toBeTruthy(); });
+    `,
+  };
+  const baseDir = await writeFiles(files);
+
+  // Resolve playwright through symlinks so that the cached transform references them.
+  const packagesDir = path.join(__dirname, '../../packages');
+  const nodeModules = path.join(baseDir, 'node_modules');
+  await fs.promises.mkdir(path.join(nodeModules, '@playwright'), { recursive: true });
+  await fs.promises.symlink(path.join(packagesDir, 'playwright'), path.join(nodeModules, 'playwright'), 'dir');
+  await fs.promises.symlink(path.join(packagesDir, 'playwright-test'), path.join(nodeModules, '@playwright', 'test'), 'dir');
+  const first = childProcess({
+    command: ['node', '--preserve-symlinks', '--preserve-symlinks-main', path.join(nodeModules, '@playwright', 'test', 'cli.js'), 'test', '--list'],
+    env: { PWTEST_CACHE_DIR: cacheDir, NODE_PRESERVE_SYMLINKS: '1' },
+    cwd: baseDir,
+  });
+  expect((await first.exited).exitCode).toBe(0);
+  expect(first.output).toContain('Total: 1 test in 1 file');
+
+  await fs.promises.rm(nodeModules, { recursive: true });
+  const result = await runInlineTest(files, undefined, { PWTEST_CACHE_DIR: cacheDir });
+  expect(result.exitCode).toBe(0);
+  expect(result.passed).toBe(1);
+});