diff --git a/pytest-playwright-asyncio/pyproject.toml b/pytest-playwright-asyncio/pyproject.toml
index 38f559d..82363dd 100644
--- a/pytest-playwright-asyncio/pyproject.toml
+++ b/pytest-playwright-asyncio/pyproject.toml
@@ -24,7 +24,7 @@ classifiers = [
 dynamic = ["version"]
 dependencies = [
     "playwright>=1.18",
-    "pytest>=6.2.4,<10.0.0",
+    "pytest>=8.2.0,<10.0.0",
     "python-slugify>=6.0.0,<10.0.0",
     "pytest-asyncio>=0.24.0",
 ]
diff --git a/pytest-playwright-asyncio/pytest_playwright_asyncio/pytest_playwright.py b/pytest-playwright-asyncio/pytest_playwright_asyncio/pytest_playwright.py
index 20e91a4..f1ebce0 100644
--- a/pytest-playwright-asyncio/pytest_playwright_asyncio/pytest_playwright.py
+++ b/pytest-playwright-asyncio/pytest_playwright_asyncio/pytest_playwright.py
@@ -20,6 +20,7 @@
 import os
 import sys
 import warnings
+import zipfile
 from pathlib import Path
 from typing import (
     Any,
@@ -34,6 +35,7 @@
     Optional,
     Protocol,
     Sequence,
+    Set,
     Tuple,
     Union,
     Pattern,
@@ -52,6 +54,7 @@
 except ImportError:
     _soft_scope = None
 from playwright.async_api import (
+    APIRequestContext,
     Browser,
     BrowserContext,
     BrowserType,
@@ -183,6 +186,8 @@ def pytest_configure(config: Any) -> None:
 
 # Set on a test item by _artifacts_recorder, picked up for the teardown report.
 _ARTIFACTS_RECORDER_ATTR = "_playwright_artifacts_recorder"
+# Node id of the test being set up, run or torn down, see _APIRequestContexts.
+_CURRENT_TEST_NODEID_KEY = pytest.StashKey[str]()
 
 
 # Making test result information available in fixtures
@@ -321,6 +326,7 @@ def _get_skiplist(item: Any, values: List[str], value_name: str) -> List[str]:
 
 
 def pytest_runtest_setup(item: Any) -> None:
+    item.config.stash[_CURRENT_TEST_NODEID_KEY] = item.nodeid
     if not hasattr(item, "callspec"):
         return
     browser_name = item.callspec.params.get("browser_name")
@@ -438,11 +444,19 @@ async def _artifacts_recorder(
     playwright: Playwright,
     pytestconfig: Any,
     _pw_artifacts_folder: tempfile.TemporaryDirectory,
+    _pw_api_request_contexts: Optional["_APIRequestContexts"],
 ) -> AsyncGenerator["ArtifactsRecorder", None]:
     artifacts_recorder = ArtifactsRecorder(
-        pytestconfig, request, output_path, playwright, _pw_artifacts_folder
+        pytestconfig,
+        request,
+        output_path,
+        playwright,
+        _pw_artifacts_folder,
+        _pw_api_request_contexts,
     )
+    await artifacts_recorder.start_api_request_tracing()
     yield artifacts_recorder
+    await artifacts_recorder.stop_api_request_tracing()
     await artifacts_recorder.collect_videos()
     if _test_failed_before_teardown(request.node):
         artifacts_recorder.did_finish_test(failed=True)
@@ -452,9 +466,31 @@ async def _artifacts_recorder(
     setattr(request.node, _ARTIFACTS_RECORDER_ATTR, artifacts_recorder)
 
 
+@pytest.fixture(autouse=True)
+def _pw_trace_api_requests(request: pytest.FixtureRequest) -> None:
+    # Tests that only use playwright.request (no page or context) don't request
+    # the artifacts recorder otherwise, and it records API request traces too.
+    if (
+        "playwright" in request.fixturenames
+        and request.config.getoption("--tracing") != "off"
+    ):
+        request.getfixturevalue("_artifacts_recorder")
+
+
+@pytest.fixture(scope="session")
+def _pw_api_request_contexts(pytestconfig: Any) -> Optional["_APIRequestContexts"]:
+    if pytestconfig.getoption("--tracing") == "off":
+        return None
+    return _APIRequestContexts(pytestconfig)
+
+
 @pytest_asyncio.fixture(scope="session")
-async def playwright() -> AsyncGenerator[Playwright, None]:
+async def playwright(
+    _pw_api_request_contexts: Optional["_APIRequestContexts"],
+) -> AsyncGenerator[Playwright, None]:
     pw = await async_playwright().start()
+    if _pw_api_request_contexts:
+        _pw_api_request_contexts.instrument(pw)
     yield pw
     await pw.stop()
 
@@ -811,8 +847,10 @@ def __init__(
         output_path: str,
         playwright: Playwright,
         pw_artifacts_folder: tempfile.TemporaryDirectory,
+        api_request_contexts: Optional["_APIRequestContexts"] = None,
     ) -> None:
         self._request = request
+        self._api_request_contexts = api_request_contexts
         self._pytestconfig = pytestconfig
         self._playwright = playwright
         self._output_path = output_path
@@ -821,6 +859,8 @@ def __init__(
         self._all_pages: List[Page] = []
         self._screenshots: List[str] = []
         self._traces: List[str] = []
+        # API request contexts that existed before this test, see start_api_request_tracing.
+        self._shared_api_request_contexts: Set[APIRequestContext] = set()
         # (temporary path, file name in the output folder)
         self._videos: List[Tuple[str, str]] = []
         self.finished = False
@@ -943,6 +983,120 @@ async def on_will_close_browser_context(self, context: BrowserContext) -> None:
                 except Error:
                     pass
 
+    async def start_api_request_tracing(self) -> None:
+        contexts = self._api_request_contexts
+        if contexts is None:
+            return
+        contexts.recorder = self
+        # Contexts from before this test, e.g. session-scoped ones: their trace is
+        # only kept when the test used them. Contexts the test creates itself keep
+        # their trace, like browser contexts do.
+        self._shared_api_request_contexts = set(contexts.live)
+        for context in contexts.live:
+            if context not in contexts.tracing_chunk:
+                await context.tracing.start_chunk(
+                    title=slugify(self._request.node.nodeid)
+                )
+                contexts.tracing_chunk.add(context)
+
+    async def stop_api_request_tracing(self) -> None:
+        contexts = self._api_request_contexts
+        if contexts is None:
+            return
+        contexts.recorder = None
+        for context in contexts.live:
+            await self.on_will_dispose_api_request_context(context)
+
+    async def on_will_dispose_api_request_context(
+        self, context: APIRequestContext
+    ) -> None:
+        contexts = self._api_request_contexts
+        if contexts is None or context not in contexts.tracing_chunk:
+            return
+        # Forgotten first: should stop_chunk fail (the error is reported like one
+        # from a browser context), the next start_chunk discards what is still
+        # being recorded.
+        contexts.tracing_chunk.discard(context)
+        trace_path = Path(self._pw_artifacts_folder.name) / _create_guid()
+        await context.tracing.stop_chunk(path=trace_path)
+        if context in self._shared_api_request_contexts and not _trace_has_actions(
+            trace_path
+        ):
+            os.remove(trace_path)
+            return
+        self._traces.append(str(trace_path))
+
+
+class _APIRequestContexts:
+    # Tracks contexts created via playwright.request.new_context() so that, like
+    # browser contexts, their traces are recorded per test.
+
+    def __init__(self, config: Any) -> None:
+        self._config = config
+        self.live: List[APIRequestContext] = []
+        # Contexts with a trace chunk in progress.
+        self.tracing_chunk: Set[APIRequestContext] = set()
+        # Recorder of the running test, if any.
+        self.recorder: Optional[ArtifactsRecorder] = None
+
+    def instrument(self, playwright: Playwright) -> None:
+        # playwright.request is one APIRequest instance for the lifetime of the
+        # Playwright object, so wrapping its method here covers all contexts.
+        original_new_context = playwright.request.new_context
+
+        async def _new_context(*args: Any, **kwargs: Any) -> APIRequestContext:
+            context = await original_new_context(*args, **kwargs)
+            if getattr(context, "tracing", None) is None:
+                # APIRequestContext.tracing requires playwright>=1.60.
+                return context
+            original_dispose = context.dispose
+
+            async def _dispose_wrapper(*args: Any, **kwargs: Any) -> None:
+                if context in self.live:
+                    self.live.remove(context)
+                try:
+                    if self.recorder is not None:
+                        await self.recorder.on_will_dispose_api_request_context(context)
+                    self.tracing_chunk.discard(context)
+                finally:
+                    # Dispose even if saving the trace failed; that error still
+                    # propagates.
+                    await original_dispose(*args, **kwargs)
+
+            context.dispose = _dispose_wrapper
+            # Contexts are usually created by fixtures, before the artifacts
+            # recorder of the test exists, so the title comes from the hook.
+            nodeid = self._config.stash.get(_CURRENT_TEST_NODEID_KEY, None)
+            await context.tracing.start(
+                title=slugify(nodeid) if nodeid else None,
+                screenshots=True,
+                snapshots=True,
+                sources=True,
+            )
+            self.live.append(context)
+            self.tracing_chunk.add(context)
+            return context
+
+        playwright.request.new_context = _new_context
+
+
+def _trace_has_actions(trace_path: Path) -> bool:
+    # Looks for an action ("before" event) in the trace. The format (one JSON
+    # event per line in *.trace) is Playwright's own and may change, in which
+    # case, or on any error, the trace is kept.
+    try:
+        with zipfile.ZipFile(trace_path) as trace:
+            for name in trace.namelist():
+                if not name.endswith(".trace"):
+                    continue
+                with trace.open(name) as events:
+                    for event in events:
+                        if b'"type":"before"' in event:
+                            return True
+        return False
+    except (OSError, zipfile.BadZipFile):
+        return True
+
 
 def _create_guid() -> str:
     return hashlib.sha256(os.urandom(16)).hexdigest()
diff --git a/pytest-playwright/pyproject.toml b/pytest-playwright/pyproject.toml
index cf78300..8c560b4 100644
--- a/pytest-playwright/pyproject.toml
+++ b/pytest-playwright/pyproject.toml
@@ -24,7 +24,7 @@ classifiers = [
 dynamic = ["version"]
 dependencies = [
     "playwright>=1.18",
-    "pytest>=6.2.4,<10.0.0",
+    "pytest>=7.0.0,<10.0.0",
     "python-slugify>=6.0.0,<10.0.0",
 ]
 
diff --git a/pytest-playwright/pytest_playwright/pytest_playwright.py b/pytest-playwright/pytest_playwright/pytest_playwright.py
index 5135eb7..fce034a 100644
--- a/pytest-playwright/pytest_playwright/pytest_playwright.py
+++ b/pytest-playwright/pytest_playwright/pytest_playwright.py
@@ -20,6 +20,7 @@
 import os
 import sys
 import warnings
+import zipfile
 from pathlib import Path
 from typing import (
     Any,
@@ -32,6 +33,7 @@
     Optional,
     Protocol,
     Sequence,
+    Set,
     Tuple,
     Union,
     Pattern,
@@ -50,6 +52,7 @@
 except ImportError:
     _soft_scope = None
 from playwright.sync_api import (
+    APIRequestContext,
     Browser,
     BrowserContext,
     BrowserType,
@@ -180,6 +183,8 @@ def pytest_configure(config: Any) -> None:
 
 # Set on a test item by _artifacts_recorder, picked up for the teardown report.
 _ARTIFACTS_RECORDER_ATTR = "_playwright_artifacts_recorder"
+# Node id of the test being set up, run or torn down, see _APIRequestContexts.
+_CURRENT_TEST_NODEID_KEY = pytest.StashKey[str]()
 
 
 # Making test result information available in fixtures
@@ -318,6 +323,7 @@ def _get_skiplist(item: Any, values: List[str], value_name: str) -> List[str]:
 
 
 def pytest_runtest_setup(item: Any) -> None:
+    item.config.stash[_CURRENT_TEST_NODEID_KEY] = item.nodeid
     if not hasattr(item, "callspec"):
         return
     browser_name = item.callspec.params.get("browser_name")
@@ -435,11 +441,19 @@ def _artifacts_recorder(
     playwright: Playwright,
     pytestconfig: Any,
     _pw_artifacts_folder: tempfile.TemporaryDirectory,
+    _pw_api_request_contexts: Optional["_APIRequestContexts"],
 ) -> Generator["ArtifactsRecorder", None, None]:
     artifacts_recorder = ArtifactsRecorder(
-        pytestconfig, request, output_path, playwright, _pw_artifacts_folder
+        pytestconfig,
+        request,
+        output_path,
+        playwright,
+        _pw_artifacts_folder,
+        _pw_api_request_contexts,
     )
+    artifacts_recorder.start_api_request_tracing()
     yield artifacts_recorder
+    artifacts_recorder.stop_api_request_tracing()
     artifacts_recorder.collect_videos()
     if _test_failed_before_teardown(request.node):
         artifacts_recorder.did_finish_test(failed=True)
@@ -449,9 +463,31 @@ def _artifacts_recorder(
     setattr(request.node, _ARTIFACTS_RECORDER_ATTR, artifacts_recorder)
 
 
+@pytest.fixture(autouse=True)
+def _pw_trace_api_requests(request: pytest.FixtureRequest) -> None:
+    # Tests that only use playwright.request (no page or context) don't request
+    # the artifacts recorder otherwise, and it records API request traces too.
+    if (
+        "playwright" in request.fixturenames
+        and request.config.getoption("--tracing") != "off"
+    ):
+        request.getfixturevalue("_artifacts_recorder")
+
+
+@pytest.fixture(scope="session")
+def _pw_api_request_contexts(pytestconfig: Any) -> Optional["_APIRequestContexts"]:
+    if pytestconfig.getoption("--tracing") == "off":
+        return None
+    return _APIRequestContexts(pytestconfig)
+
+
 @pytest.fixture(scope="session")
-def playwright() -> Generator[Playwright, None, None]:
+def playwright(
+    _pw_api_request_contexts: Optional["_APIRequestContexts"],
+) -> Generator[Playwright, None, None]:
     pw = sync_playwright().start()
+    if _pw_api_request_contexts:
+        _pw_api_request_contexts.instrument(pw)
     yield pw
     pw.stop()
 
@@ -808,8 +844,10 @@ def __init__(
         output_path: str,
         playwright: Playwright,
         pw_artifacts_folder: tempfile.TemporaryDirectory,
+        api_request_contexts: Optional["_APIRequestContexts"] = None,
     ) -> None:
         self._request = request
+        self._api_request_contexts = api_request_contexts
         self._pytestconfig = pytestconfig
         self._playwright = playwright
         self._output_path = output_path
@@ -818,6 +856,8 @@ def __init__(
         self._all_pages: List[Page] = []
         self._screenshots: List[str] = []
         self._traces: List[str] = []
+        # API request contexts that existed before this test, see start_api_request_tracing.
+        self._shared_api_request_contexts: Set[APIRequestContext] = set()
         # (temporary path, file name in the output folder)
         self._videos: List[Tuple[str, str]] = []
         self.finished = False
@@ -940,6 +980,116 @@ def on_will_close_browser_context(self, context: BrowserContext) -> None:
                 except Error:
                     pass
 
+    def start_api_request_tracing(self) -> None:
+        contexts = self._api_request_contexts
+        if contexts is None:
+            return
+        contexts.recorder = self
+        # Contexts from before this test, e.g. session-scoped ones: their trace is
+        # only kept when the test used them. Contexts the test creates itself keep
+        # their trace, like browser contexts do.
+        self._shared_api_request_contexts = set(contexts.live)
+        for context in contexts.live:
+            if context not in contexts.tracing_chunk:
+                context.tracing.start_chunk(title=slugify(self._request.node.nodeid))
+                contexts.tracing_chunk.add(context)
+
+    def stop_api_request_tracing(self) -> None:
+        contexts = self._api_request_contexts
+        if contexts is None:
+            return
+        contexts.recorder = None
+        for context in contexts.live:
+            self.on_will_dispose_api_request_context(context)
+
+    def on_will_dispose_api_request_context(self, context: APIRequestContext) -> None:
+        contexts = self._api_request_contexts
+        if contexts is None or context not in contexts.tracing_chunk:
+            return
+        # Forgotten first: should stop_chunk fail (the error is reported like one
+        # from a browser context), the next start_chunk discards what is still
+        # being recorded.
+        contexts.tracing_chunk.discard(context)
+        trace_path = Path(self._pw_artifacts_folder.name) / _create_guid()
+        context.tracing.stop_chunk(path=trace_path)
+        if context in self._shared_api_request_contexts and not _trace_has_actions(
+            trace_path
+        ):
+            os.remove(trace_path)
+            return
+        self._traces.append(str(trace_path))
+
+
+class _APIRequestContexts:
+    # Tracks contexts created via playwright.request.new_context() so that, like
+    # browser contexts, their traces are recorded per test.
+
+    def __init__(self, config: Any) -> None:
+        self._config = config
+        self.live: List[APIRequestContext] = []
+        # Contexts with a trace chunk in progress.
+        self.tracing_chunk: Set[APIRequestContext] = set()
+        # Recorder of the running test, if any.
+        self.recorder: Optional[ArtifactsRecorder] = None
+
+    def instrument(self, playwright: Playwright) -> None:
+        # playwright.request is one APIRequest instance for the lifetime of the
+        # Playwright object, so wrapping its method here covers all contexts.
+        original_new_context = playwright.request.new_context
+
+        def _new_context(*args: Any, **kwargs: Any) -> APIRequestContext:
+            context = original_new_context(*args, **kwargs)
+            if getattr(context, "tracing", None) is None:
+                # APIRequestContext.tracing requires playwright>=1.60.
+                return context
+            original_dispose = context.dispose
+
+            def _dispose_wrapper(*args: Any, **kwargs: Any) -> None:
+                if context in self.live:
+                    self.live.remove(context)
+                try:
+                    if self.recorder is not None:
+                        self.recorder.on_will_dispose_api_request_context(context)
+                    self.tracing_chunk.discard(context)
+                finally:
+                    # Dispose even if saving the trace failed; that error still
+                    # propagates.
+                    original_dispose(*args, **kwargs)
+
+            context.dispose = _dispose_wrapper
+            # Contexts are usually created by fixtures, before the artifacts
+            # recorder of the test exists, so the title comes from the hook.
+            nodeid = self._config.stash.get(_CURRENT_TEST_NODEID_KEY, None)
+            context.tracing.start(
+                title=slugify(nodeid) if nodeid else None,
+                screenshots=True,
+                snapshots=True,
+                sources=True,
+            )
+            self.live.append(context)
+            self.tracing_chunk.add(context)
+            return context
+
+        playwright.request.new_context = _new_context
+
+
+def _trace_has_actions(trace_path: Path) -> bool:
+    # Looks for an action ("before" event) in the trace. The format (one JSON
+    # event per line in *.trace) is Playwright's own and may change, in which
+    # case, or on any error, the trace is kept.
+    try:
+        with zipfile.ZipFile(trace_path) as trace:
+            for name in trace.namelist():
+                if not name.endswith(".trace"):
+                    continue
+                with trace.open(name) as events:
+                    for event in events:
+                        if b'"type":"before"' in event:
+                            return True
+        return False
+    except (OSError, zipfile.BadZipFile):
+        return True
+
 
 def _create_guid() -> str:
     return hashlib.sha256(os.urandom(16)).hexdigest()
diff --git a/tests/test_asyncio.py b/tests/test_asyncio.py
index 354ecdf..d34e3ea 100644
--- a/tests/test_asyncio.py
+++ b/tests/test_asyncio.py
@@ -13,12 +13,14 @@
 # limitations under the License.
 
 import importlib.util
+import json
 import os
 import signal
 import subprocess
 import sys
 from typing import Optional
 from xml.etree import ElementTree
+import zipfile
 
 import pytest
 
@@ -1246,6 +1248,66 @@ async def test_failing(page, new_context):
     assert "data:video/webm;base64," in report
 
 
+def test_traces_api_request_contexts(
+    testdir: pytest.Testdir, test_server: HTTPTestServer
+) -> None:
+    # https://github.com/microsoft/playwright-pytest/issues/137
+    testdir.makeconftest(
+        f"""
+        import pytest_asyncio
+
+        @pytest_asyncio.fixture(scope="session")
+        async def api_request_context(playwright):
+            context = await playwright.request.new_context(base_url="{test_server.PREFIX}")
+            yield context
+            await context.dispose()
+
+        @pytest_asyncio.fixture
+        async def function_api_request_context(playwright):
+            context = await playwright.request.new_context(base_url="{test_server.PREFIX}")
+            yield context
+            await context.dispose()
+    """
+    )
+    testdir.makepyfile(
+        """
+        import pytest
+
+        @pytest.mark.asyncio
+        async def test_session_context_1(api_request_context):
+            await api_request_context.get("/one")
+
+        @pytest.mark.asyncio
+        async def test_session_context_2(api_request_context):
+            await api_request_context.get("/two")
+
+        @pytest.mark.asyncio
+        async def test_function_context(function_api_request_context):
+            await function_api_request_context.get("/three")
+
+        @pytest.mark.asyncio
+        async def test_unused_function_context(function_api_request_context):
+            pass
+
+        @pytest.mark.asyncio
+        async def test_page_and_api_context(page, api_request_context):
+            await page.set_content("<div>hello</div>")
+            await api_request_context.get("/five")
+
+        @pytest.mark.asyncio
+        async def test_instrumented_only_with_tracing(playwright, pytestconfig):
+            instrumented = playwright.request.new_context.__name__ != "new_context"
+            assert instrumented == (pytestconfig.getoption("--tracing") != "off")
+
+        @pytest.mark.asyncio
+        async def test_failing(api_request_context):
+            await api_request_context.get("/four")
+            raise Exception("Failed")
+    """
+    )
+    _assert_api_request_traces(testdir)
+
+
 def test_should_work_with_test_names_which_exceeds_256_characters(
     testdir: pytest.Testdir,
 ) -> None:
@@ -1295,6 +1357,87 @@ def _assert_folder_structure(root: str, expected: str) -> None:
         raise AssertionError("Actual tree does not match expected tree")
 
 
+def _assert_api_request_traces(testdir: pytest.Testdir) -> None:
+    __tracebackhide__ = True
+    test_results_dir = os.path.join(testdir.tmpdir, "test-results")
+    prefix = os.path.join(test_results_dir, "test-traces-api-request-contexts-py-test-")
+
+    result = testdir.runpytest("--tracing", "on")
+    result.assert_outcomes(passed=6, failed=1)
+    _assert_folder_structure(
+        test_results_dir,
+        """
+- test-traces-api-request-contexts-py-test-failing:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-function-context:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-page-and-api-context-chromium:
+  - trace-1.zip
+  - trace-2.zip
+- test-traces-api-request-contexts-py-test-session-context-1:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-session-context-2:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-unused-function-context:
+  - trace.zip
+""",
+    )
+    # Each test gets a trace with only its own requests, including tests that
+    # share a session-scoped context, and every trace is titled after its test.
+    for name, urls in [
+        ("session-context-1", ["/one"]),
+        ("session-context-2", ["/two"]),
+        ("function-context", ["/three"]),
+        ("failing", ["/four"]),
+        # A context the test created but did not use keeps its trace.
+        ("unused-function-context", []),
+    ]:
+        assert _trace_request_urls(prefix + name + "/trace.zip") == urls
+        assert _trace_title(prefix + name + "/trace.zip") == os.path.basename(
+            prefix + name
+        )
+    # Browser trace first, then the API trace.
+    folder = prefix + "page-and-api-context-chromium/"
+    assert _trace_request_urls(folder + "trace-2.zip") == ["/five"]
+    assert _trace_title(folder + "trace-1.zip") == _trace_title(folder + "trace-2.zip")
+    assert _trace_title(folder + "trace-1.zip") == os.path.basename(folder[:-1])
+
+    result = testdir.runpytest("--tracing", "retain-on-failure")
+    result.assert_outcomes(passed=6, failed=1)
+    _assert_folder_structure(
+        test_results_dir,
+        """
+- test-traces-api-request-contexts-py-test-failing:
+  - trace.zip
+""",
+    )
+
+    result = testdir.runpytest()
+    result.assert_outcomes(passed=6, failed=1)
+    assert not os.path.exists(test_results_dir)
+
+
+def _trace_events(trace_path: str) -> list:
+    with zipfile.ZipFile(trace_path) as trace:
+        return [json.loads(line) for line in trace.read("trace.trace").splitlines()]
+
+
+def _trace_request_urls(trace_path: str) -> list:
+    return [
+        event["params"]["url"]
+        for event in _trace_events(trace_path)
+        if event["type"] == "before"
+    ]
+
+
+def _trace_title(trace_path: str) -> str:
+    return next(
+        event["title"]
+        for event in _trace_events(trace_path)
+        if event["type"] == "context-options"
+    )
+
+
 def test_is_able_to_set_expect_timeout_via_conftest(testdir: pytest.Testdir) -> None:
     testdir.makeconftest(
         """
diff --git a/tests/test_sync.py b/tests/test_sync.py
index 6ca84c5..9528fc5 100644
--- a/tests/test_sync.py
+++ b/tests/test_sync.py
@@ -13,6 +13,7 @@
 # limitations under the License.
 
 import importlib.util
+import json
 import os
 from pathlib import Path
 import signal
@@ -20,6 +21,7 @@
 import sys
 from typing import Optional
 from xml.etree import ElementTree
+import zipfile
 
 import pytest
 
@@ -1214,6 +1216,57 @@ def test_failing(page, new_context):
     assert "data:video/webm;base64," in report
 
 
+def test_traces_api_request_contexts(
+    testdir: pytest.Testdir, test_server: HTTPTestServer
+) -> None:
+    # https://github.com/microsoft/playwright-pytest/issues/137
+    testdir.makeconftest(
+        f"""
+        import pytest
+
+        @pytest.fixture(scope="session")
+        def api_request_context(playwright):
+            context = playwright.request.new_context(base_url="{test_server.PREFIX}")
+            yield context
+            context.dispose()
+
+        @pytest.fixture
+        def function_api_request_context(playwright):
+            context = playwright.request.new_context(base_url="{test_server.PREFIX}")
+            yield context
+            context.dispose()
+    """
+    )
+    testdir.makepyfile(
+        """
+        def test_session_context_1(api_request_context):
+            api_request_context.get("/one")
+
+        def test_session_context_2(api_request_context):
+            api_request_context.get("/two")
+
+        def test_function_context(function_api_request_context):
+            function_api_request_context.get("/three")
+
+        def test_unused_function_context(function_api_request_context):
+            pass
+
+        def test_page_and_api_context(page, api_request_context):
+            page.set_content("<div>hello</div>")
+            api_request_context.get("/five")
+
+        def test_instrumented_only_with_tracing(playwright, pytestconfig):
+            instrumented = playwright.request.new_context.__name__ != "new_context"
+            assert instrumented == (pytestconfig.getoption("--tracing") != "off")
+
+        def test_failing(api_request_context):
+            api_request_context.get("/four")
+            raise Exception("Failed")
+    """
+    )
+    _assert_api_request_traces(testdir)
+
+
 def test_should_work_with_test_names_which_exceeds_256_characters(
     testdir: pytest.Testdir,
 ) -> None:
@@ -1261,6 +1314,87 @@ def _assert_folder_structure(root: str, expected: str) -> None:
         raise AssertionError("Actual tree does not match expected tree")
 
 
+def _assert_api_request_traces(testdir: pytest.Testdir) -> None:
+    __tracebackhide__ = True
+    test_results_dir = os.path.join(testdir.tmpdir, "test-results")
+    prefix = os.path.join(test_results_dir, "test-traces-api-request-contexts-py-test-")
+
+    result = testdir.runpytest("--tracing", "on")
+    result.assert_outcomes(passed=6, failed=1)
+    _assert_folder_structure(
+        test_results_dir,
+        """
+- test-traces-api-request-contexts-py-test-failing:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-function-context:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-page-and-api-context-chromium:
+  - trace-1.zip
+  - trace-2.zip
+- test-traces-api-request-contexts-py-test-session-context-1:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-session-context-2:
+  - trace.zip
+- test-traces-api-request-contexts-py-test-unused-function-context:
+  - trace.zip
+""",
+    )
+    # Each test gets a trace with only its own requests, including tests that
+    # share a session-scoped context, and every trace is titled after its test.
+    for name, urls in [
+        ("session-context-1", ["/one"]),
+        ("session-context-2", ["/two"]),
+        ("function-context", ["/three"]),
+        ("failing", ["/four"]),
+        # A context the test created but did not use keeps its trace.
+        ("unused-function-context", []),
+    ]:
+        assert _trace_request_urls(prefix + name + "/trace.zip") == urls
+        assert _trace_title(prefix + name + "/trace.zip") == os.path.basename(
+            prefix + name
+        )
+    # Browser trace first, then the API trace.
+    folder = prefix + "page-and-api-context-chromium/"
+    assert _trace_request_urls(folder + "trace-2.zip") == ["/five"]
+    assert _trace_title(folder + "trace-1.zip") == _trace_title(folder + "trace-2.zip")
+    assert _trace_title(folder + "trace-1.zip") == os.path.basename(folder[:-1])
+
+    result = testdir.runpytest("--tracing", "retain-on-failure")
+    result.assert_outcomes(passed=6, failed=1)
+    _assert_folder_structure(
+        test_results_dir,
+        """
+- test-traces-api-request-contexts-py-test-failing:
+  - trace.zip
+""",
+    )
+
+    result = testdir.runpytest()
+    result.assert_outcomes(passed=6, failed=1)
+    assert not os.path.exists(test_results_dir)
+
+
+def _trace_events(trace_path: str) -> list:
+    with zipfile.ZipFile(trace_path) as trace:
+        return [json.loads(line) for line in trace.read("trace.trace").splitlines()]
+
+
+def _trace_request_urls(trace_path: str) -> list:
+    return [
+        event["params"]["url"]
+        for event in _trace_events(trace_path)
+        if event["type"] == "before"
+    ]
+
+
+def _trace_title(trace_path: str) -> str:
+    return next(
+        event["title"]
+        for event in _trace_events(trace_path)
+        if event["type"] == "context-options"
+    )
+
+
 def test_is_able_to_set_expect_timeout_via_conftest(testdir: pytest.Testdir) -> None:
     testdir.makeconftest(
         """