diff --git a/packages/playwright/src/runner/loadUtils.ts b/packages/playwright/src/runner/loadUtils.ts
index a2cce3b386459..bca87af72e3ae 100644
--- a/packages/playwright/src/runner/loadUtils.ts
+++ b/packages/playwright/src/runner/loadUtils.ts
@@ -188,9 +188,6 @@ export async function createRootSuite(testRun: TestRun, errors: TestError[], sho
     suiteUtils.filterTestsRemoveEmptySuites(rootSuite, test => testsInThisShard.has(test));
   }
 
-  if (testRun.postShardTestFilters.length)
-    suiteUtils.filterTestsRemoveEmptySuites(rootSuite, test => testRun.postShardTestFilters.every(filter => filter(test)));
-
   const topLevelProjects = [];
   // Now prepend dependency projects without filtration.
   {
@@ -207,6 +204,9 @@ export async function createRootSuite(testRun: TestRun, errors: TestError[], sho
     }
   }
 
+  if (testRun.postShardTestFilters.length)
+    suiteUtils.filterTestsRemoveEmptySuites(rootSuite, test => testRun.postShardTestFilters.every(filter => filter(test)));
+
   testRun.rootSuite = rootSuite;
   testRun.topLevelProjects = topLevelProjects;
 }
diff --git a/tests/playwright-test/runner.spec.ts b/tests/playwright-test/runner.spec.ts
index ea0ed5129121d..a9cdb36965129 100644
--- a/tests/playwright-test/runner.spec.ts
+++ b/tests/playwright-test/runner.spec.ts
@@ -954,3 +954,42 @@ test('should run last failed tests in a shard with --last-failed-file', async ({
   expect(result2.output).not.toContain('b.spec.js:3:11 › pass-b');
   expect(result2.output).toContain('b.spec.js:4:11 › fail-b');
 });
+
+test('should apply --last-failed to dependency projects as well', async ({ runInlineTest }) => {
+  const workspace = {
+    'a.spec.ts': `
+      import { test, expect } from '@playwright/test';
+      test('pass-a', async () => {});
+      test('fail-a', async () => {
+        expect(1).toBe(2);
+      });
+    `,
+    'b.spec.ts': `
+      import { test, expect } from '@playwright/test';
+      test.beforeAll(async () => {});
+      test('pass-b', async () => {});
+      test('fail-b', async () => {
+        expect(1).toBe(2);
+      });
+    `,
+    'playwright.config.ts': `
+      import { defineConfig } from '@playwright/test';
+      export default defineConfig({
+        projects: [
+          { name: 'setup', testMatch: /a\\.spec\\.ts/ },
+          { name: 'main', testMatch: /b\\.spec\\.ts/, dependencies: ['setup'] },
+        ],
+      });
+    `,
+  };
+
+  const result1 = await runInlineTest(workspace);
+  expect(result1.exitCode).toBe(1);
+  expect(result1.passed).toBe(1);
+  expect(result1.failed).toBe(2);
+
+  const result2 = await runInlineTest(workspace, {}, {}, { additionalArgs: ['--last-failed'] });
+  expect(result2.exitCode).toBe(1);
+  expect(result2.passed).toBe(0);
+  expect(result2.failed).toBe(2);
+});