diff --git a/packages/playwright/src/runner/testServer.ts b/packages/playwright/src/runner/testServer.ts
index 50a8de366e928f..7150f5fd81c95f 100644
--- a/packages/playwright/src/runner/testServer.ts
+++ b/packages/playwright/src/runner/testServer.ts
@@ -305,13 +305,14 @@ export class TestServerDispatcher implements TestServerInterface {
         ...(this._configCLIOverrides.use || {}),
         trace: params.trace === 'on' ? { mode: 'on', sources: false, _live: true } : (params.trace === 'off' ? 'off' : undefined),
         video: params.video === 'on' ? 'on' : (params.video === 'off' ? 'off' : undefined),
-        headless: params.headed ? false : undefined,
         _optionContextReuseMode: params.reuseContext ? 'when-possible' : undefined,
         _optionConnectOptions: params.connectWsEndpoint ? { wsEndpoint: params.connectWsEndpoint } : undefined,
       },
       ...(params.updateSnapshots ? { updateSnapshots: params.updateSnapshots } : {}),
       ...(params.workers ? { workers: params.workers } : {}),
     };
+    if (params.headed !== undefined)
+      overrides.use.headless = !params.headed;
     if (params.trace === 'on')
       process.env.PW_LIVE_TRACE_STACKS = '1';
     else