diff --git a/.github/workflows/tests-pr.yml b/.github/workflows/tests-pr.yml
index 3165c915e66..9a2d043e9c4 100644
--- a/.github/workflows/tests-pr.yml
+++ b/.github/workflows/tests-pr.yml
@@ -221,6 +221,30 @@ jobs:
         if: needs.unit-tests.result != 'success'
         run: exit 1
 
+  e2e-local-tests:
+    name: 'E2E local tests'
+    needs: [type-check, bundle]
+    runs-on: ubuntu-latest
+    timeout-minutes: 20
+    continue-on-error: true
+    steps:
+      - uses: actions/checkout@v6
+        with:
+          repository: ${{ github.event.pull_request.head.repo.full_name || github.event.repository.full_name }}
+          ref: ${{ github.event.pull_request.head.ref || github.event.merge_group.head_ref }}
+          fetch-depth: 1
+      - name: Setup deps
+        uses: ./.github/actions/setup-cli-deps
+        with:
+          node-version: ${{ env.PLAYWRIGHT_NODE_VERSION }}
+      - name: Build
+        run: pnpm nx run-many --all --target=build --output-style=stream
+      - name: Rebuild node-pty
+        run: pnpm rebuild node-pty
+      - name: Run local E2E tests
+        working-directory: packages/e2e
+        run: pnpm exec playwright test --project local
+
   e2e-tests:
     name: "E2E tests (shard ${{ matrix.shard }})"
     if: github.event_name == 'merge_group' || github.event.pull_request.head.repo.full_name == github.repository
@@ -259,7 +283,7 @@ jobs:
           E2E_STORE_FQDN: ${{ secrets.E2E_STORE_FQDN }}
           E2E_ORG_ID: ${{ secrets.E2E_ORG_ID }}
           E2E_LOADTEST_HEADER: ${{ secrets.E2E_LOADTEST_HEADER }}
-        run: pnpm exec playwright test --shard ${{ matrix.shard }}
+        run: pnpm exec playwright test --project remote --shard ${{ matrix.shard }}
       - name: Upload Playwright report
         uses: actions/upload-artifact@v4
         if: ${{ !cancelled() }}
diff --git a/packages/e2e/playwright.config.ts b/packages/e2e/playwright.config.ts
index e10b229cd3d..a6592818b3e 100644
--- a/packages/e2e/playwright.config.ts
+++ b/packages/e2e/playwright.config.ts
@@ -8,8 +8,7 @@ config()
 const isCI = Boolean(process.env.CI)
 
 export default defineConfig({
-  globalSetup: './setup/global-auth.ts',
-  testDir: './tests',
+  testDir: '.',
   fullyParallel: true,
   forbidOnly: isCI,
   retries: 0,
@@ -24,4 +23,20 @@ export default defineConfig({
     screenshot: isCI ? 'on' : 'off',
     video: 'off',
   },
+  projects: [
+    {
+      name: 'local',
+      testMatch: ['tests/smoke.spec.ts', 'tests/smoke-pty.spec.ts', 'tests/fixture-toml.spec.ts'],
+    },
+    {
+      name: 'remote-auth',
+      testMatch: 'setup/global-auth.setup.ts',
+    },
+    {
+      name: 'remote',
+      testMatch: 'tests/*.spec.ts',
+      testIgnore: ['tests/smoke.spec.ts', 'tests/smoke-pty.spec.ts', 'tests/fixture-toml.spec.ts'],
+      dependencies: ['remote-auth'],
+    },
+  ],
 })
diff --git a/packages/e2e/setup/auth-state.ts b/packages/e2e/setup/auth-state.ts
new file mode 100644
index 00000000000..6dd30322e1a
--- /dev/null
+++ b/packages/e2e/setup/auth-state.ts
@@ -0,0 +1,18 @@
+/* eslint-disable no-restricted-imports */
+import {directories} from './env.js'
+import * as path from 'path'
+
+export function authStatePaths() {
+  const authDir = path.join(process.env.E2E_TEMP_DIR ?? path.join(directories.root, '.e2e-tmp'), 'global-auth')
+
+  return {
+    authDir,
+    storageStatePath: path.join(authDir, 'browser-storage-state.json'),
+    xdgEnv: {
+      XDG_DATA_HOME: path.join(authDir, 'XDG_DATA_HOME'),
+      XDG_CONFIG_HOME: path.join(authDir, 'XDG_CONFIG_HOME'),
+      XDG_STATE_HOME: path.join(authDir, 'XDG_STATE_HOME'),
+      XDG_CACHE_HOME: path.join(authDir, 'XDG_CACHE_HOME'),
+    },
+  }
+}
diff --git a/packages/e2e/setup/auth.ts b/packages/e2e/setup/auth.ts
index 93caef60194..fa87c1663db 100644
--- a/packages/e2e/setup/auth.ts
+++ b/packages/e2e/setup/auth.ts
@@ -1,4 +1,5 @@
 import {browserFixture} from './browser.js'
+import {authStatePaths} from './auth-state.js'
 import {CLI_TIMEOUT, BROWSER_TIMEOUT} from './constants.js'
 import {globalLog, executables} from './env.js'
 import {stripAnsi} from '../helpers/strip-ansi.js'
@@ -13,8 +14,8 @@ const log = {log: (_ctx: any, msg: string) => globalLog('auth', msg)}
 /**
  * Worker-scoped fixture that provides an authenticated CLI session.
  *
- * If globalSetup already ran auth (E2E_AUTH_CONFIG_DIR is set), copies the
- * pre-authenticated session files into this worker's isolated XDG dirs.
+ * If the remote project's auth setup completed, copies the pre-authenticated
+ * session files into this worker's isolated XDG dirs.
  * Otherwise falls back to running auth login directly (single-worker mode).
  *
  * Fixture chain: envFixture → cliFixture → browserFixture → authFixture
@@ -30,28 +31,15 @@ export const authFixture = browserFixture.extend<{}, {authLogin: void}>({
         return
       }
 
-      const authConfigDir = process.env.E2E_AUTH_CONFIG_DIR
-      const authDataDir = process.env.E2E_AUTH_DATA_DIR
-      const authStateDir = process.env.E2E_AUTH_STATE_DIR
-      const authCacheDir = process.env.E2E_AUTH_CACHE_DIR
-
-      if (authConfigDir && authDataDir && authStateDir && authCacheDir) {
-        // Copy pre-authenticated session from global setup
-        log.log(env, 'copying session from global setup')
-
-        if (
-          !fs.existsSync(authConfigDir) ||
-          !fs.existsSync(authDataDir) ||
-          !fs.existsSync(authStateDir) ||
-          !fs.existsSync(authCacheDir)
-        ) {
-          throw new Error('Global auth dirs missing — global setup may not have completed successfully')
-        }
-
-        fs.cpSync(authConfigDir, env.processEnv.XDG_CONFIG_HOME!, {recursive: true})
-        fs.cpSync(authDataDir, env.processEnv.XDG_DATA_HOME!, {recursive: true})
-        fs.cpSync(authStateDir, env.processEnv.XDG_STATE_HOME!, {recursive: true})
-        fs.cpSync(authCacheDir, env.processEnv.XDG_CACHE_HOME!, {recursive: true})
+      const {xdgEnv: authXdgEnv} = authStatePaths()
+      const authDirs = Object.values(authXdgEnv)
+
+      if (authDirs.every((directory) => fs.existsSync(directory))) {
+        log.log(env, 'copying session from auth setup')
+        fs.cpSync(authXdgEnv.XDG_CONFIG_HOME, env.processEnv.XDG_CONFIG_HOME!, {recursive: true})
+        fs.cpSync(authXdgEnv.XDG_DATA_HOME, env.processEnv.XDG_DATA_HOME!, {recursive: true})
+        fs.cpSync(authXdgEnv.XDG_STATE_HOME, env.processEnv.XDG_STATE_HOME!, {recursive: true})
+        fs.cpSync(authXdgEnv.XDG_CACHE_HOME, env.processEnv.XDG_CACHE_HOME!, {recursive: true})
 
         await use()
         return
diff --git a/packages/e2e/setup/browser.ts b/packages/e2e/setup/browser.ts
index 92e9b7be2d7..e18df20d34e 100644
--- a/packages/e2e/setup/browser.ts
+++ b/packages/e2e/setup/browser.ts
@@ -1,4 +1,5 @@
 import {cliFixture} from './cli.js'
+import {authStatePaths} from './auth-state.js'
 import {BROWSER_TIMEOUT} from './constants.js'
 import {addLoadtestHeader} from '../helpers/loadtest-header.js'
 import {chromium, type Locator, type Page} from '@playwright/test'
@@ -57,8 +58,10 @@ export const browserFixture = cliFixture.extend<{}, {browserPage: Page}>({
     // eslint-disable-next-line no-empty-pattern
     async ({}, use) => {
       const browser = await chromium.launch({headless: !process.env.E2E_HEADED})
-      const storageStatePath = process.env.E2E_BROWSER_STATE_PATH
-      const hasValidStorageState = storageStatePath && fs.existsSync(storageStatePath)
+      const storageStatePath = authStatePaths().storageStatePath
+      const hasValidStorageState = Boolean(
+        process.env.E2E_ACCOUNT_EMAIL && process.env.E2E_ACCOUNT_PASSWORD && fs.existsSync(storageStatePath),
+      )
       const context = await browser.newContext({
         ...(hasValidStorageState ? {storageState: storageStatePath} : {}),
       })
diff --git a/packages/e2e/setup/global-auth.setup.ts b/packages/e2e/setup/global-auth.setup.ts
new file mode 100644
index 00000000000..a7d6654080a
--- /dev/null
+++ b/packages/e2e/setup/global-auth.setup.ts
@@ -0,0 +1,6 @@
+import {prepareGlobalAuth} from './global-auth.js'
+import {test as setup} from '@playwright/test'
+
+setup('authenticate', async () => {
+  await prepareGlobalAuth()
+})
diff --git a/packages/e2e/setup/global-auth.ts b/packages/e2e/setup/global-auth.ts
index d232aa611f7..ccfb8200483 100644
--- a/packages/e2e/setup/global-auth.ts
+++ b/packages/e2e/setup/global-auth.ts
@@ -1,13 +1,13 @@
 /**
- * Playwright globalSetup — authenticates once before any workers start.
+ * Authenticates once before the remote Playwright project starts.
  *
  * Auth artifacts are stored in a stable `global-auth/` dir. Workers copy
- * the session files into their own isolated XDG dirs via E2E_AUTH_* env vars.
+ * the session files into their own isolated XDG dirs.
  */
 
-/* eslint-disable no-restricted-imports */
 import {isVisibleWithin} from './browser.js'
-import {directories, executables, globalLog} from './env.js'
+import {executables, globalLog} from './env.js'
+import {authStatePaths} from './auth-state.js'
 import {CLI_TIMEOUT, BROWSER_TIMEOUT} from './constants.js'
 import {stripAnsi} from '../helpers/strip-ansi.js'
 import {waitForText} from '../helpers/wait-for-text.js'
@@ -15,7 +15,6 @@ import {completeLogin} from '../helpers/browser-login.js'
 import {addLoadtestHeader} from '../helpers/loadtest-header.js'
 import {execa} from 'execa'
 import {chromium, type Page} from '@playwright/test'
-import * as path from 'path'
 import * as fs from 'fs'
 
 function isAccountsShopifyUrl(rawUrl: string): boolean {
@@ -27,7 +26,10 @@ function isAccountsShopifyUrl(rawUrl: string): boolean {
   }
 }
 
-export default async function globalSetup() {
+export async function prepareGlobalAuth() {
+  const {authDir, storageStatePath, xdgEnv} = authStatePaths()
+  fs.rmSync(authDir, {recursive: true, force: true})
+
   const email = process.env.E2E_ACCOUNT_EMAIL
   const password = process.env.E2E_ACCOUNT_PASSWORD
 
@@ -36,18 +38,7 @@ export default async function globalSetup() {
   const debug = process.env.DEBUG === '1'
   globalLog('auth', 'global setup starting')
 
-  // All auth artifacts stored in a stable dir
-  const tmpBase = process.env.E2E_TEMP_DIR ?? path.join(directories.root, '.e2e-tmp')
-  fs.mkdirSync(tmpBase, {recursive: true})
-  const authDir = path.join(tmpBase, 'global-auth')
-  const storageStatePath = path.join(authDir, 'browser-storage-state.json')
-
-  const xdgEnv = {
-    XDG_DATA_HOME: path.join(authDir, 'XDG_DATA_HOME'),
-    XDG_CONFIG_HOME: path.join(authDir, 'XDG_CONFIG_HOME'),
-    XDG_STATE_HOME: path.join(authDir, 'XDG_STATE_HOME'),
-    XDG_CACHE_HOME: path.join(authDir, 'XDG_CACHE_HOME'),
-  }
+  fs.mkdirSync(authDir, {recursive: true})
 
   const processEnv: NodeJS.ProcessEnv = {
     ...process.env,
@@ -142,15 +133,6 @@ export default async function globalSetup() {
     }
   }
 
-  // Store paths so workers can copy CLI auth + load browser state
-  /* eslint-disable require-atomic-updates */
-  process.env.E2E_AUTH_CONFIG_DIR = xdgEnv.XDG_CONFIG_HOME
-  process.env.E2E_AUTH_DATA_DIR = xdgEnv.XDG_DATA_HOME
-  process.env.E2E_AUTH_STATE_DIR = xdgEnv.XDG_STATE_HOME
-  process.env.E2E_AUTH_CACHE_DIR = xdgEnv.XDG_CACHE_HOME
-  process.env.E2E_BROWSER_STATE_PATH = storageStatePath
-  /* eslint-enable require-atomic-updates */
-
   globalLog('auth', `global setup done, config at ${xdgEnv.XDG_CONFIG_HOME}`)
 }