diff --git a/packages/playwright-core/src/protocol/validator.ts b/packages/playwright-core/src/protocol/validator.ts
index 7cc9066da70c0..950e989d63b23 100644
--- a/packages/playwright-core/src/protocol/validator.ts
+++ b/packages/playwright-core/src/protocol/validator.ts
@@ -180,11 +180,15 @@ scheme.IndexedDBDatabase = tObject({
 });
 scheme.SetOriginStorage = tObject({
   origin: tString,
+  partitionKey: tOptional(tString),
+  _crHasCrossSiteAncestor: tOptional(tBoolean),
   localStorage: tArray(tType('NameValue')),
   indexedDB: tOptional(tArray(tType('IndexedDBDatabase'))),
 });
 scheme.OriginStorage = tObject({
   origin: tString,
+  partitionKey: tOptional(tString),
+  _crHasCrossSiteAncestor: tOptional(tBoolean),
   localStorage: tArray(tType('NameValue')),
   indexedDB: tOptional(tArray(tType('IndexedDBDatabase'))),
 });
diff --git a/packages/playwright-core/src/server/browserContext.ts b/packages/playwright-core/src/server/browserContext.ts
index 1866e05a21b44..c8195fdc0df72 100644
--- a/packages/playwright-core/src/server/browserContext.ts
+++ b/packages/playwright-core/src/server/browserContext.ts
@@ -79,7 +79,7 @@ export abstract class BrowserContext extends SdkObject {
   readonly _browser: Browser;
   readonly _browserContextId: string | undefined;
   private _selectors: Selectors;
-  private _origins = new Set<string>();
+  private _origins: Set<string> = new Set();
   readonly _harRecorders = new Map<string, HarRecorder>();
   readonly tracing: Tracing;
   readonly fetchRequest: BrowserContextAPIRequestContext;
@@ -558,8 +558,9 @@ export abstract class BrowserContext extends SdkObject {
     }
   }
 
-  addVisitedOrigin(origin: string) {
-    this._origins.add(origin);
+  addVisitedOrigin(origin: string, firstPartyOrigin: string, hasCrossOriginAncestor: boolean) {
+    const key = serializeThirdPartyOrigin(origin, firstPartyOrigin, hasCrossOriginAncestor);
+    this._origins.add(key);
   }
 
   async storageState(progress: Progress, indexedDB = false): Promise<channels.BrowserContextStorageStateResult> {
@@ -567,7 +568,17 @@ export abstract class BrowserContext extends SdkObject {
       cookies: await this.cookies(),
       origins: []
     };
-    const originsToSave = new Set(this._origins);
+
+    const firstPartyToOrigins = new Map<string, Set<string>>();
+    for (const o of this._origins.values()) {
+      const { firstParty } = parseThirdPartyOrigin(o);
+      let partition = firstPartyToOrigins.get(firstParty);
+      if (!partition) {
+        partition = new Set();
+        firstPartyToOrigins.set(firstParty, partition);
+      }
+      partition.add(o);
+    }
 
     const collectScript = `(() => {
       const module = {};
@@ -578,32 +589,54 @@ export abstract class BrowserContext extends SdkObject {
 
     // First try collecting storage stage from existing pages.
     for (const page of this.pages()) {
-      const origin = page.mainFrame().origin();
-      if (!origin || !originsToSave.has(origin))
+      const firstParty = page.mainFrame().origin();
+      if (!firstParty)
         continue;
-      try {
-        const storage: SerializedStorage = await page.mainFrame().nonStallingEvaluateInExistingContext(collectScript, 'utility');
-        if (storage.localStorage.length || storage.indexedDB?.length)
-          result.origins.push({ origin, localStorage: storage.localStorage, indexedDB: storage.indexedDB });
-        originsToSave.delete(origin);
-      } catch {
-        // When failed on the live page, we'll retry on the blank page below.
+      const origins = firstPartyToOrigins.get(firstParty);
+      if (!origins)
+        continue;
+      while (origins.size) {
+        const { frame, origin, hasCrossOriginAncestor, thirdPartyOrigin }  = findThirdPartyFrame(page, origins);
+        if (!frame)
+          break;
+        try {
+          const storage: SerializedStorage = await frame.nonStallingEvaluateInExistingContext(collectScript, 'utility');
+          if (storage.localStorage.length || storage.indexedDB?.length) {
+            const exportedOrigin: channels.OriginStorage = { origin, localStorage: storage.localStorage, indexedDB: storage.indexedDB };
+            if (hasCrossOriginAncestor) {
+              exportedOrigin._crHasCrossSiteAncestor = hasCrossOriginAncestor;
+              exportedOrigin.partitionKey = firstParty;
+            }
+            result.origins.push(exportedOrigin);
+          }
+          origins.delete(thirdPartyOrigin);
+        } catch {
+          // When failed on the live page, we'll retry on the blank page below.
+          break;
+        }
       }
+      if (!origins.size)
+        firstPartyToOrigins.delete(firstParty);
     }
 
     // If there are still origins to save, create a blank page to iterate over origins.
-    if (originsToSave.size)  {
+    if (firstPartyToOrigins.size)  {
       const page = await this.newPage(progress, true /* forStorageState */);
       try {
-        await page.addRequestInterceptor(progress, route => {
-          route.fulfill({ body: '<html></html>' }).catch(() => {});
-        }, 'prepend');
-        for (const origin of originsToSave) {
-          const frame = page.mainFrame();
-          await frame.gotoImpl(progress, origin, {});
-          const storage: SerializedStorage = await progress.race(frame.evaluateExpression(collectScript, { world: 'utility' }));
-          if (storage.localStorage.length || storage.indexedDB?.length)
-            result.origins.push({ origin, localStorage: storage.localStorage, indexedDB: storage.indexedDB });
+        for (const [firstParty, origins] of firstPartyToOrigins.entries()) {
+          for (const thirdPartyOrigin of origins) {
+            const { origin, hasCrossOriginAncestor } = parseThirdPartyOrigin(thirdPartyOrigin);
+            const frame = await navigateToOrigin(progress, page, origin, firstParty, hasCrossOriginAncestor);
+            const storage: SerializedStorage = await progress.race(frame.evaluateExpression(collectScript, { world: 'utility' }));
+            if (storage.localStorage.length || storage.indexedDB?.length) {
+              const exportedOrigin: channels.OriginStorage = { origin, localStorage: storage.localStorage, indexedDB: storage.indexedDB };
+              if (hasCrossOriginAncestor) {
+                exportedOrigin._crHasCrossSiteAncestor = hasCrossOriginAncestor;
+                exportedOrigin.partitionKey = firstParty;
+              }
+              result.origins.push(exportedOrigin);
+            }
+          }
         }
       } finally {
         await page.close();
@@ -618,7 +651,6 @@ export abstract class BrowserContext extends SdkObject {
 
   async setStorageState(progress: Progress, state: channels.BrowserNewContextParams['storageState'], mode: 'initial' | 'resetForReuse') {
     let page: Page | undefined;
-    let interceptor: network.RouteHandler | undefined;
     try {
       if (mode !== 'initial') {
         await progress.race(this.clearCache());
@@ -628,40 +660,38 @@ export abstract class BrowserContext extends SdkObject {
       if (state?.cookies)
         await progress.race(this.addCookies(state.cookies));
 
-      const newOrigins = new Map(state?.origins?.map(p => [p.origin, p]) || []);
-      const allOrigins = new Set([...this._origins, ...newOrigins.keys()]);
+      const newOriginToState = new Map<string, SerializedStorage>();
+      for (const originState of state?.origins || []) {
+        const key = serializeThirdPartyOrigin(originState.origin, originState.partitionKey ?? originState.origin, originState._crHasCrossSiteAncestor ?? false);
+        newOriginToState.set(key, originState);
+      }
+
+      const allOrigins = new Set([...this._origins, ...newOriginToState.keys()]);
       if (allOrigins.size) {
         if (mode === 'resetForReuse')
           page = this.pages()[0];
         if (!page)
           page = await this.newPage(progress, mode !== 'resetForReuse' /* forStorageState */);
 
-        interceptor = (route: network.Route) => {
-          route.fulfill({ body: '<html></html>' }).catch(() => {});
-        };
-        await page.addRequestInterceptor(progress, interceptor, 'prepend');
-
-        for (const origin of allOrigins) {
-          const frame = page.mainFrame();
-          await frame.gotoImpl(progress, origin, {});
+        for (const serializedOrigin of allOrigins) {
+          const { firstParty, hasCrossOriginAncestor, origin } = parseThirdPartyOrigin(serializedOrigin);
+          const frame = await navigateToOrigin(progress, page, origin, firstParty, hasCrossOriginAncestor);
           const restoreScript = `(() => {
             const module = {};
             ${rawStorageSource.source}
             const script = new (module.exports.StorageScript())(${this._browser.options.name === 'firefox'});
-            return script.restore(${JSON.stringify(newOrigins.get(origin))});
+            return script.restore(${JSON.stringify(newOriginToState.get(serializedOrigin))});
           })()`;
           await progress.race(frame.evaluateExpression(restoreScript, { world: 'utility' }));
         }
       }
-      this._origins = new Set([...newOrigins.keys()]);
+      this._origins = new Set([...newOriginToState.keys()]);
     } catch (error) {
       rewriteErrorMessage(error, `Error setting storage state:\n` + error.message);
       throw error;
     } finally {
       if (mode !== 'resetForReuse')
         await page?.close();
-      else if (interceptor)
-        await page?.removeRequestInterceptor(interceptor);
     }
   }
 
@@ -703,6 +733,15 @@ export abstract class BrowserContext extends SdkObject {
   }
 }
 
+function serializeThirdPartyOrigin(origin: string, firstParty: string, hasCrossOriginAncestor: boolean) {
+  return JSON.stringify([firstParty, hasCrossOriginAncestor, origin]);
+}
+
+function parseThirdPartyOrigin(serialized: string) {
+  const [firstParty, hasCrossOriginAncestor, origin] = JSON.parse(serialized);
+  return { firstParty, hasCrossOriginAncestor, origin };
+}
+
 export function validateBrowserContextOptions(options: types.BrowserContextOptions, browserOptions: BrowserOptions) {
   if (options.noDefaultViewport && options.deviceScaleFactor !== undefined)
     throw new Error(`"deviceScaleFactor" option is not supported with null "viewport"`);
@@ -792,6 +831,71 @@ export function normalizeProxySettings(proxy: types.ProxySettings): types.ProxyS
   return { ...proxy, server, bypass };
 }
 
+async function navigateToOrigin(progress: Progress, page: Page, origin: string, firstParty: string, hasCrossOriginAncestor: boolean): Promise<frames.Frame> {
+  const urlToContent = new Map<string, string>();
+  const addResource = (url: string, content: string) => {
+    try {
+      urlToContent.set(new URL(url).toString(), content);
+    } catch (e) {
+      throw new Error(`Invalid URL: ${url}`);
+    }
+  };
+
+  if (origin === firstParty && hasCrossOriginAncestor) {
+    const url = new URL(origin);
+    url.hostname = 'x-' + url.hostname;
+    const intermediateOrigin = url.toString();
+    // Make inner frame url different from the top level for easier routing.
+    const frameUrl = new URL('/frame', origin).toString();
+    addResource(firstParty, `<iframe src="${intermediateOrigin}"></iframe>`);
+    addResource(intermediateOrigin, `<iframe src="${frameUrl}"></iframe>`);
+    addResource(frameUrl, `<html></html>`);
+  } else if (origin !== firstParty) {
+    addResource(firstParty, `<iframe src="${origin}"></iframe>`);
+    addResource(origin, `<html></html>`);
+  } else {
+    addResource(firstParty, `<html></html>`);
+  }
+  const interceptor = (route: network.Route) => {
+    const body = urlToContent.get(route.request().url());
+    // Favicon?
+    if (!body)
+      return route.abort();
+    route.fulfill({ body });
+  };
+  await page.addRequestInterceptor(progress, interceptor, 'prepend');
+  const frame = page.mainFrame();
+  const promise = new Promise<frames.Frame>(resolve => {
+    const expectedFrameCount = urlToContent.size;
+    const listener = () => {
+      if (page.frames().length === expectedFrameCount) {
+        resolve(page.frames().pop()!);
+        page.off(Page.Events.FrameAttached, listener);
+      }
+    };
+    page.on(Page.Events.FrameAttached, listener);
+    listener();
+  });
+  await frame.gotoImpl(progress, firstParty, {});
+  const innerFrame = await promise;
+  await innerFrame._waitForLoadState(progress, 'load');
+  await progress.race(page.removeRequestInterceptor(interceptor));
+  return innerFrame!;
+}
+
+function findThirdPartyFrame(page: Page, origins: Set<string>) {
+  for (const thirdPartyOrigin of origins) {
+    const { firstParty, origin, hasCrossOriginAncestor } = parseThirdPartyOrigin(thirdPartyOrigin);
+    for (const frame of page.frames()) {
+      if (frame.origin() !== origin)
+        continue;
+      if (origin !== firstParty || frame.hasCrossOriginAncestor() === hasCrossOriginAncestor)
+        return { frame, thirdPartyOrigin, origin, hasCrossOriginAncestor };
+    }
+  }
+  return {};
+}
+
 const paramsThatAllowContextReuse: (keyof channels.BrowserNewContextForReuseParams)[] = [
   'colorScheme',
   'forcedColors',
diff --git a/packages/playwright-core/src/server/chromium/chromiumSwitches.ts b/packages/playwright-core/src/server/chromium/chromiumSwitches.ts
index cedf70082c0f8..ac250b705073a 100644
--- a/packages/playwright-core/src/server/chromium/chromiumSwitches.ts
+++ b/packages/playwright-core/src/server/chromium/chromiumSwitches.ts
@@ -34,8 +34,6 @@ const disabledFeatures = (assistantMode?: boolean) => [
   'MediaRouter',
   // See https://github.com/microsoft/playwright/issues/28023
   'PaintHolding',
-  // See https://github.com/microsoft/playwright/issues/32230
-  'ThirdPartyStoragePartitioning',
   // See https://github.com/microsoft/playwright/issues/16126
   'Translate',
   // See https://issues.chromium.org/u/1/issues/435410220
diff --git a/packages/playwright-core/src/server/frames.ts b/packages/playwright-core/src/server/frames.ts
index 891de22817dfa..2b7ee856aebdc 100644
--- a/packages/playwright-core/src/server/frames.ts
+++ b/packages/playwright-core/src/server/frames.ts
@@ -1646,6 +1646,14 @@ export class Frame extends SdkObject {
     }, { source, arg });
   }
 
+  hasCrossOriginAncestor(): boolean {
+    for (let ancestor = this.parentFrame(); ancestor; ancestor = ancestor.parentFrame()) {
+      if (ancestor.origin() !== this.origin())
+        return true;
+    }
+    return false;
+  }
+
   private _asLocator(selector: string) {
     return asLocator(this._page.browserContext._browser.sdkLanguage(), selector);
   }
diff --git a/packages/playwright-core/src/server/page.ts b/packages/playwright-core/src/server/page.ts
index 7f8f7b7163a02..0047d511447f7 100644
--- a/packages/playwright-core/src/server/page.ts
+++ b/packages/playwright-core/src/server/page.ts
@@ -787,8 +787,10 @@ export class Page extends SdkObject {
   frameNavigatedToNewDocument(frame: frames.Frame) {
     this.emit(Page.Events.InternalFrameNavigatedToNewDocument, frame);
     const origin = frame.origin();
-    if (origin)
-      this.browserContext.addVisitedOrigin(origin);
+    const firstPartyOrigin = frame._page.mainFrame().origin();
+    const hasCrossOriginAncestor = frame.hasCrossOriginAncestor();
+    if (firstPartyOrigin && origin)
+      this.browserContext.addVisitedOrigin(origin, firstPartyOrigin, hasCrossOriginAncestor);
   }
 
   allInitScripts() {
diff --git a/packages/protocol/src/channels.d.ts b/packages/protocol/src/channels.d.ts
index 9250010ca43d0..34745dcad2000 100644
--- a/packages/protocol/src/channels.d.ts
+++ b/packages/protocol/src/channels.d.ts
@@ -309,12 +309,16 @@ export type IndexedDBDatabase = {
 
 export type SetOriginStorage = {
   origin: string,
+  partitionKey?: string,
+  _crHasCrossSiteAncestor?: boolean,
   localStorage: NameValue[],
   indexedDB?: IndexedDBDatabase[],
 };
 
 export type OriginStorage = {
   origin: string,
+  partitionKey?: string,
+  _crHasCrossSiteAncestor?: boolean,
   localStorage: NameValue[],
   indexedDB?: IndexedDBDatabase[],
 };
diff --git a/packages/protocol/src/protocol.yml b/packages/protocol/src/protocol.yml
index 080251712ae74..61939ef816b86 100644
--- a/packages/protocol/src/protocol.yml
+++ b/packages/protocol/src/protocol.yml
@@ -295,6 +295,8 @@ SetOriginStorage:
   type: object
   properties:
     origin: string
+    partitionKey: string?
+    _crHasCrossSiteAncestor: boolean?
     localStorage:
       type: array
       items: NameValue
@@ -306,6 +308,8 @@ OriginStorage:
   type: object
   properties:
     origin: string
+    partitionKey: string?
+    _crHasCrossSiteAncestor: boolean?
     localStorage:
       type: array
       items: NameValue
diff --git a/tests/library/browsercontext-cookies-third-party.spec.ts b/tests/library/browsercontext-cookies-third-party.spec.ts
index 0e78cbd7bcb26..e1bb4e711956e 100644
--- a/tests/library/browsercontext-cookies-third-party.spec.ts
+++ b/tests/library/browsercontext-cookies-third-party.spec.ts
@@ -128,9 +128,9 @@ async function runNonPartitionedTest(page: Page, httpsServer: TestServer, browse
 
   // WebKit does not support third-party cookies without a 'Partition' attribute.
   if (browserName === 'webkit' && isMac)
-    await expect(frameBody).toHaveText('Received cookie: undefined');
+    await expect.soft(frameBody).toHaveText('Received cookie: undefined');
   else
-    await expect(frameBody).toHaveText('Received cookie: top-level=value');
+    await expect.soft(frameBody).toHaveText('Received cookie: top-level=value');
 
   // Set cookie and do second navigation.
   await page.goto(urls.set_origin2_origin1);
@@ -139,14 +139,14 @@ async function runNonPartitionedTest(page: Page, httpsServer: TestServer, browse
     'Received cookie: undefined' : browserName === 'webkit' && isLinux ?
       'Received cookie: top-level=value' :
       'Received cookie: frame=value; top-level=value';
-  await expect(frameBody).toHaveText(expectedThirdParty, { timeout: 1000 });
+  await expect.soft(frameBody).toHaveText(expectedThirdParty, { timeout: 1000 });
 
   // Check again the top-level cookie.
   await page.goto(urls.read_origin1);
   const expectedTopLevel = browserName === 'webkit' && (isMac || isLinux) ?
     'Received cookie: top-level=value' :
     'Received cookie: frame=value; top-level=value';
-  expect(await page.locator('body').textContent()).toBe(expectedTopLevel);
+  expect.soft(await page.locator('body').textContent()).toBe(expectedTopLevel);
 
   return {
     expectedTopLevel,
diff --git a/tests/library/browsercontext-storage-state.spec.ts b/tests/library/browsercontext-storage-state.spec.ts
index 4f4fca6cee201..2a5e1a743bf7e 100644
--- a/tests/library/browsercontext-storage-state.spec.ts
+++ b/tests/library/browsercontext-storage-state.spec.ts
@@ -337,7 +337,7 @@ it('should work when service worker is intefering', async ({ page, context, serv
   expect(storageState.origins[0].localStorage[0]).toEqual({ name: 'foo', value: 'bar' });
 });
 
-it('should set local storage in third-party context', async ({ contextFactory, server }) => {
+it('should set local storage in third-party context', async ({ contextFactory, server, browserName }) => {
   const context = await contextFactory({
     storageState: {
       cookies: [],
@@ -353,11 +353,16 @@ it('should set local storage in third-party context', async ({ contextFactory, s
     }
   });
   const page = await context.newPage();
+
   await page.goto(server.EMPTY_PAGE);
   const frame = await attachFrame(page, 'frame1', server.CROSS_PROCESS_PREFIX + '/empty.html');
 
   const localStorage = await frame.evaluate('window.localStorage');
-  expect(localStorage).toEqual({ name1: 'value1' });
+  // Storage partitioning is enabled.
+  if (browserName === 'chromium')
+    expect(localStorage).toEqual({ });
+  else
+    expect(localStorage).toEqual({ name1: 'value1' });
   await context.close();
 });
 
@@ -500,3 +505,111 @@ it('should support empty indexedDB', { annotation: { type: 'issue', description:
   const context = await contextFactory({ storageState });
   expect(await context.storageState({ indexedDB: true })).toEqual(storageState);
 });
+
+it('should set indexedDB in third-party context', async ({ page, contextFactory, server }) => {
+  await page.goto(server.EMPTY_PAGE);
+  const frame = await attachFrame(page, 'frame1', server.CROSS_PROCESS_PREFIX + '/to-do-notifications/index.html');
+
+  await expect(frame.locator('#notifications')).toMatchAriaSnapshot(`
+    - list:
+      - listitem: Database initialised.
+  `);
+  await frame.getByLabel('Task title').fill('Pet the cat');
+  await frame.getByLabel('Hours').fill('1');
+  await frame.getByLabel('Mins').fill('1');
+  await frame.getByText('Add Task').click();
+  await expect(frame.locator('#notifications')).toMatchAriaSnapshot(`
+    - list:
+      - listitem: "Transaction completed: database modification finished."
+  `);
+
+  const storageState = await page.context().storageState({ indexedDB: true });
+  const expectedOrigins = [
+    {
+      origin: server.CROSS_PROCESS_PREFIX,
+      partitionKey: server.PREFIX,
+      _crHasCrossSiteAncestor: true,
+      localStorage: [],
+      indexedDB: [
+        {
+          name: 'toDoList',
+          version: 4,
+          stores: [
+            {
+              name: 'toDoList',
+              autoIncrement: false,
+              keyPath: 'taskTitle',
+              records: [
+                {
+                  value: {
+                    day: '01',
+                    hours: '1',
+                    minutes: '1',
+                    month: 'January',
+                    notified: 'no',
+                    taskTitle: 'Pet the cat',
+                    year: '2025',
+                  },
+                },
+              ],
+              indexes: [
+                {
+                  name: 'day',
+                  keyPath: 'day',
+                  multiEntry: false,
+                  unique: false,
+                },
+                {
+                  name: 'hours',
+                  keyPath: 'hours',
+                  multiEntry: false,
+                  unique: false,
+                },
+                {
+                  name: 'minutes',
+                  keyPath: 'minutes',
+                  multiEntry: false,
+                  unique: false,
+                },
+                {
+                  name: 'month',
+                  keyPath: 'month',
+                  multiEntry: false,
+                  unique: false,
+                },
+                {
+                  name: 'notified',
+                  keyPath: 'notified',
+                  multiEntry: false,
+                  unique: false,
+                },
+                {
+                  name: 'year',
+                  keyPath: 'year',
+                  multiEntry: false,
+                  unique: false,
+                },
+              ],
+            },
+          ],
+        },
+      ],
+    },
+  ];
+  expect(storageState.origins).toEqual(expectedOrigins);
+
+  {
+    const context = await contextFactory({ storageState });
+    expect(await context.storageState({ indexedDB: true })).toEqual(storageState);
+    const recreatedPage = await context.newPage();
+    await recreatedPage.goto(server.EMPTY_PAGE);
+    const recreatedFrame = await attachFrame(recreatedPage, 'frame1', server.CROSS_PROCESS_PREFIX + '/to-do-notifications/index.html');
+    await expect(recreatedFrame.locator('#task-list')).toMatchAriaSnapshot(`
+      - list:
+        - listitem:
+          - text: /Pet the cat/
+    `);
+    const newState = await context.storageState({ indexedDB: true });
+    expect(newState.origins).toEqual(expectedOrigins);
+  }
+});