diff --git a/.circleci/config.yml b/.circleci/config.yml
index ba7d9e3e5397..169309ba598f 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -43,7 +43,7 @@ executors:
         default: 'small'
     working_directory: /tmp/storybook
     docker:
-      - image: mcr.microsoft.com/playwright:v1.31.1-focal
+      - image: mcr.microsoft.com/playwright:v1.32.3-focal
         environment:
           NODE_OPTIONS: --max_old_space_size=6144
     resource_class: <<parameters.class>>
diff --git a/code/package.json b/code/package.json
index c98704e9dbaf..505d9f7b772b 100644
--- a/code/package.json
+++ b/code/package.json
@@ -78,13 +78,13 @@
     "defaults"
   ],
   "resolutions": {
-    "@playwright/test": "1.31.1",
+    "@playwright/test": "1.32.3",
     "@typescript-eslint/eslint-plugin": "^5.45.0",
     "@typescript-eslint/experimental-utils": "^5.45.0",
     "@typescript-eslint/parser": "^5.45.0",
     "esbuild": "^0.17.0",
     "eslint": "^8.28.0",
-    "playwright": "1.31.1",
+    "playwright": "1.32.3",
     "serialize-javascript": "^3.1.0"
   },
   "dependencies": {
@@ -99,7 +99,7 @@
     "@nrwl/cli": "^15.4.5",
     "@nrwl/nx-cloud": "^15.0.2",
     "@nrwl/workspace": "^15.4.5",
-    "@playwright/test": "1.31.1",
+    "@playwright/test": "1.32.3",
     "@storybook/addon-a11y": "workspace:*",
     "@storybook/addon-actions": "workspace:*",
     "@storybook/addon-backgrounds": "workspace:*",
@@ -245,7 +245,7 @@
     "lodash": "^4.17.21",
     "node-gyp": "^8.4.0",
     "nx": "^15.4.5",
-    "playwright": "1.31.1",
+    "playwright": "1.32.3",
     "prettier": "2.8.0",
     "process": "^0.11.10",
     "raf": "^3.4.1",
diff --git a/code/yarn.lock b/code/yarn.lock
index 11b10a55bfe6..f49d539ad089 100644
--- a/code/yarn.lock
+++ b/code/yarn.lock
@@ -4727,19 +4727,19 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@playwright/test@npm:1.31.1":
-  version: 1.31.1
-  resolution: "@playwright/test@npm:1.31.1"
+"@playwright/test@npm:1.32.3":
+  version: 1.32.3
+  resolution: "@playwright/test@npm:1.32.3"
   dependencies:
     "@types/node": "*"
     fsevents: 2.3.2
-    playwright-core: 1.31.1
+    playwright-core: 1.32.3
   dependenciesMeta:
     fsevents:
       optional: true
   bin:
     playwright: cli.js
-  checksum: db0a4666d0399d26ff563346749e6a8c1f5b16a16a361ec0daa3b4956ea4cd9f44e8e18a48d48492d37409fba411980b383cb2d19c2dfffa7b14b7a8b3fee983
+  checksum: d09e4135c868b4067f45b8c297d02b0d8ddb8298657c942a06c72f3d9a3236af94586718dc7590693dbb31ea4b8fcceeb8a1e8811072f2add7d952c5c9129df3
   languageName: node
   linkType: hard
 
@@ -6980,7 +6980,7 @@ __metadata:
     "@nrwl/cli": ^15.4.5
     "@nrwl/nx-cloud": ^15.0.2
     "@nrwl/workspace": ^15.4.5
-    "@playwright/test": 1.31.1
+    "@playwright/test": 1.32.3
     "@storybook/addon-a11y": "workspace:*"
     "@storybook/addon-actions": "workspace:*"
     "@storybook/addon-backgrounds": "workspace:*"
@@ -7126,7 +7126,7 @@ __metadata:
     lodash: ^4.17.21
     node-gyp: ^8.4.0
     nx: ^15.4.5
-    playwright: 1.31.1
+    playwright: 1.32.3
     prettier: 2.8.0
     process: ^0.11.10
     raf: ^3.4.1
@@ -24112,23 +24112,23 @@ __metadata:
   languageName: node
   linkType: hard
 
-"playwright-core@npm:1.31.1":
-  version: 1.31.1
-  resolution: "playwright-core@npm:1.31.1"
+"playwright-core@npm:1.32.3":
+  version: 1.32.3
+  resolution: "playwright-core@npm:1.32.3"
   bin:
     playwright: cli.js
-  checksum: 9df7cb50df49a61fc7146dfd5a8d08488a295fabdedb2e522678ba2f393149f8baaaeff189fb4efbc3c1849ee375c6be3cbe5adf379e816b5efd365954e26f6c
+  checksum: 8b94feb15084813607abac69ef3d4f78b345bcc89e322706e62c203b79e74096caf499ce4cd4103b1bfc853f17a9ff0573f636dc0ee88f56a5cb6ed18ce55f06
   languageName: node
   linkType: hard
 
-"playwright@npm:1.31.1":
-  version: 1.31.1
-  resolution: "playwright@npm:1.31.1"
+"playwright@npm:1.32.3":
+  version: 1.32.3
+  resolution: "playwright@npm:1.32.3"
   dependencies:
-    playwright-core: 1.31.1
+    playwright-core: 1.32.3
   bin:
     playwright: cli.js
-  checksum: 786f581b768a7c76248f59ecb2fc5a9b9f85eca371a62afdcbc0298e5714434648dd86fc3860215ffb2719351558e9c194b0a437e162a8c8bf384c54477a250e
+  checksum: 26a3a8897d1a41cd5d001859521ee44b3ac21618e638d3b2a58615672b2f325a6cdeb614dabc6b120999d8874f260c9786683644b13fe07476d4a3a47fcfff1f
   languageName: node
   linkType: hard
 
diff --git a/docs/contribute/code.md b/docs/contribute/code.md
index 04b1734b0992..ece3481c1e1c 100644
--- a/docs/contribute/code.md
+++ b/docs/contribute/code.md
@@ -33,7 +33,6 @@ If all goes well, you should see the sandbox running.
 
 ![Storybook sandbox running](../get-started/example-welcome.png)
 
-
 ## Running a different sandbox template
 
 By default, the `start` command is configured to initialize a Vite-based React template. If you're planning on working on a different renderer instead, you can do so as well. Start by running the `task` command as follows:
@@ -124,6 +123,12 @@ To run an e2e test against a sandbox, you can use the `e2e-tests` task:
 yarn task --task e2e-tests --template=react-vite/default-ts --start-from=auto
 ```
 
+If there are issues and you'd like to debug them, you can pass a `DEBUG=1` environment variable, and Playwright will run in watch mode.
+
+```shell
+DEBUG=1 yarn task --task e2e-tests --template=react-vite/default-ts --start-from=auto
+```
+
 ## Submit a pull request
 
 Before submitting your contribution, run the test suite one last time with the following:
diff --git a/scripts/tasks/e2e-tests-build.ts b/scripts/tasks/e2e-tests-build.ts
index b4f42239588d..a90670fa7258 100644
--- a/scripts/tasks/e2e-tests-build.ts
+++ b/scripts/tasks/e2e-tests-build.ts
@@ -15,13 +15,13 @@ export const e2eTestsBuild: Task & { port: number } = {
     if (process.env.DEBUG) {
       // eslint-disable-next-line no-console
       console.log(dedent`
-        Running e2e tests in Playwright debug mode for chromium only.
+        Running e2e tests in Playwright's ui mode for chromium only (for brevity sake).
         You can change the browser by changing the --project flag in the e2e-tests task file.
       `);
     }
 
     const playwrightCommand = process.env.DEBUG
-      ? 'PWDEBUG=1 yarn playwright test --project=chromium'
+      ? 'yarn playwright test --project=chromium --ui'
       : 'yarn playwright test';
 
     await exec(
diff --git a/scripts/utils/yarn.ts b/scripts/utils/yarn.ts
index 7c3443d227df..03b8f4198c31 100644
--- a/scripts/utils/yarn.ts
+++ b/scripts/utils/yarn.ts
@@ -24,8 +24,8 @@ export const addPackageResolutions = async ({ cwd, dryRun }: YarnOptions) => {
     ...storybookVersions,
     'enhanced-resolve': '~5.10.0', // TODO, remove this
     // this is for our CI test, ensure we use the same version as docker image, it should match version specified in `./code/package.json` and `.circleci/config.yml`
-    '@playwright/test': '1.31.1',
-    playwright: '1.31.1',
+    '@playwright/test': '1.32.3',
+    playwright: '1.32.3',
   };
   await writeJSON(packageJsonPath, packageJson, { spaces: 2 });
 };