diff --git a/packages/playwright/src/mcp/browser/tools.ts b/packages/playwright/src/mcp/browser/tools.ts
index d33da63e0d604..fe203bbdb6e74 100644
--- a/packages/playwright/src/mcp/browser/tools.ts
+++ b/packages/playwright/src/mcp/browser/tools.ts
@@ -20,6 +20,7 @@ import dialogs from './tools/dialogs';
 import evaluate from './tools/evaluate';
 import files from './tools/files';
 import form from './tools/form';
+import geolocation from './tools/geolocation';
 import install from './tools/install';
 import keyboard from './tools/keyboard';
 import mouse from './tools/mouse';
@@ -44,6 +45,7 @@ export const browserTools: Tool<any>[] = [
   ...evaluate,
   ...files,
   ...form,
+  ...geolocation,
   ...install,
   ...keyboard,
   ...navigate,
diff --git a/packages/playwright/src/mcp/browser/tools/geolocation.ts b/packages/playwright/src/mcp/browser/tools/geolocation.ts
new file mode 100644
index 0000000000000..1792665aa5e8c
--- /dev/null
+++ b/packages/playwright/src/mcp/browser/tools/geolocation.ts
@@ -0,0 +1,77 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { z } from 'playwright-core/lib/mcpBundle';
+import { defineTool } from './tool';
+
+const setGeolocation = defineTool({
+  capability: 'geolocation',
+
+  schema: {
+    name: 'browser_set_geolocation',
+    title: 'Set geolocation',
+    description: 'Set the browser geolocation to mock location-based features. This affects all pages in the browser context.',
+    inputSchema: z.object({
+      latitude: z.number().min(-90).max(90).describe('Latitude between -90 and 90'),
+      longitude: z.number().min(-180).max(180).describe('Longitude between -180 and 180'),
+      accuracy: z.number().optional().describe('Optional accuracy in meters, defaults to 0'),
+    }),
+    type: 'action',
+  },
+
+  handle: async (context, params, response) => {
+    const browserContext = await context.ensureBrowserContext();
+
+    // Grant geolocation permission first
+    await browserContext.grantPermissions(['geolocation']);
+
+    // Set the geolocation
+    await browserContext.setGeolocation({
+      latitude: params.latitude,
+      longitude: params.longitude,
+      accuracy: params.accuracy ?? 0,
+    });
+
+    response.addCode(`await page.context().grantPermissions(['geolocation']);`);
+    response.addCode(`await page.context().setGeolocation({ latitude: ${params.latitude}, longitude: ${params.longitude}, accuracy: ${params.accuracy ?? 0} });`);
+  },
+});
+
+const clearGeolocation = defineTool({
+  capability: 'geolocation',
+
+  schema: {
+    name: 'browser_clear_geolocation',
+    title: 'Clear geolocation',
+    description: 'Clear the mocked geolocation and restore default behavior',
+    inputSchema: z.object({}),
+    type: 'action',
+  },
+
+  handle: async (context, params, response) => {
+    const browserContext = await context.ensureBrowserContext();
+
+    // Clear the mocked geolocation while keeping the permission
+    await browserContext.setGeolocation(null);
+
+    response.addCode(`await page.context().setGeolocation(null);`);
+  },
+});
+
+export default [
+  setGeolocation,
+  clearGeolocation,
+];
diff --git a/packages/playwright/src/mcp/config.d.ts b/packages/playwright/src/mcp/config.d.ts
index 98706d634c096..af32838640920 100644
--- a/packages/playwright/src/mcp/config.d.ts
+++ b/packages/playwright/src/mcp/config.d.ts
@@ -16,7 +16,7 @@
 
 import type * as playwright from 'playwright-core';
 
-export type ToolCapability = 'core' | 'core-tabs' | 'core-install' | 'vision' | 'pdf' | 'testing' | 'tracing';
+export type ToolCapability = 'core' | 'core-tabs' | 'core-install' | 'vision' | 'pdf' | 'geolocation' | 'testing' | 'tracing';
 
 export type Config = {
   /**
@@ -104,6 +104,7 @@ export type Config = {
    *   - 'core': Core browser automation features.
    *   - 'pdf': PDF generation and manipulation.
    *   - 'vision': Coordinate-based interactions.
+   *   - 'geolocation': Browser geolocation mocking.
    */
   capabilities?: ToolCapability[];
 
diff --git a/packages/playwright/src/mcp/program.ts b/packages/playwright/src/mcp/program.ts
index 7495dd9af5d53..1e945cda47f97 100644
--- a/packages/playwright/src/mcp/program.ts
+++ b/packages/playwright/src/mcp/program.ts
@@ -32,88 +32,88 @@ import type { Command } from 'playwright-core/lib/utilsBundle';
 
 export function decorateCommand(command: Command, version: string) {
   command
-      .option('--allowed-hosts <hosts...>', 'comma-separated list of hosts this server is allowed to serve from. Defaults to the host the server is bound to. Pass \'*\' to disable the host check.', commaSeparatedList)
-      .option('--allowed-origins <origins>', 'semicolon-separated list of TRUSTED origins to allow the browser to request. Default is to allow all.\nImportant: *does not* serve as a security boundary and *does not* affect redirects. ', semicolonSeparatedList)
-      .option('--allow-unrestricted-file-access', 'allow access to files outside of the workspace roots. Also allows unrestricted access to file:// URLs. By default access to file system is restricted to workspace root directories (or cwd if no roots are configured) only, and navigation to file:// URLs is blocked.')
-      .option('--blocked-origins <origins>', 'semicolon-separated list of origins to block the browser from requesting. Blocklist is evaluated before allowlist. If used without the allowlist, requests not matching the blocklist are still allowed.\nImportant: *does not* serve as a security boundary and *does not* affect redirects.', semicolonSeparatedList)
-      .option('--block-service-workers', 'block service workers')
-      .option('--browser <browser>', 'browser or chrome channel to use, possible values: chrome, firefox, webkit, msedge.')
-      .option('--caps <caps>', 'comma-separated list of additional capabilities to enable, possible values: vision, pdf.', commaSeparatedList)
-      .option('--cdp-endpoint <endpoint>', 'CDP endpoint to connect to.')
-      .option('--cdp-header <headers...>', 'CDP headers to send with the connect request, multiple can be specified.', headerParser)
-      .option('--config <path>', 'path to the configuration file.')
-      .option('--console-level <level>', 'level of console messages to return: "error", "warning", "info", "debug". Each level includes the messages of more severe levels.', enumParser.bind(null, '--console-level', ['error', 'warning', 'info', 'debug']))
-      .option('--device <device>', 'device to emulate, for example: "iPhone 15"')
-      .option('--executable-path <path>', 'path to the browser executable.')
-      .option('--extension', 'Connect to a running browser instance (Edge/Chrome only). Requires the "Playwright MCP Bridge" browser extension to be installed.')
-      .option('--grant-permissions <permissions...>', 'List of permissions to grant to the browser context, for example "geolocation", "clipboard-read", "clipboard-write".', commaSeparatedList)
-      .option('--headless', 'run browser in headless mode, headed by default')
-      .option('--host <host>', 'host to bind server to. Default is localhost. Use 0.0.0.0 to bind to all interfaces.')
-      .option('--ignore-https-errors', 'ignore https errors')
-      .option('--init-page <path...>', 'path to TypeScript file to evaluate on Playwright page object')
-      .option('--init-script <path...>', 'path to JavaScript file to add as an initialization script. The script will be evaluated in every page before any of the page\'s scripts. Can be specified multiple times.')
-      .option('--isolated', 'keep the browser profile in memory, do not save it to disk.')
-      .option('--image-responses <mode>', 'whether to send image responses to the client. Can be "allow" or "omit", Defaults to "allow".', enumParser.bind(null, '--image-responses', ['allow', 'omit']))
-      .option('--no-sandbox', 'disable the sandbox for all process types that are normally sandboxed.')
-      .option('--output-dir <path>', 'path to the directory for output files.')
-      .option('--port <port>', 'port to listen on for SSE transport.')
-      .option('--proxy-bypass <bypass>', 'comma-separated domains to bypass proxy, for example ".com,chromium.org,.domain.com"')
-      .option('--proxy-server <proxy>', 'specify proxy server, for example "http://myproxy:3128" or "socks5://myproxy:8080"')
-      .option('--save-session', 'Whether to save the Playwright MCP session into the output directory.')
-      .option('--save-trace', 'Whether to save the Playwright Trace of the session into the output directory.')
-      .option('--save-video <size>', 'Whether to save the video of the session into the output directory. For example "--save-video=800x600"', resolutionParser.bind(null, '--save-video'))
-      .option('--secrets <path>', 'path to a file containing secrets in the dotenv format', dotenvFileLoader)
-      .option('--shared-browser-context', 'reuse the same browser context between all connected HTTP clients.')
-      .option('--snapshot-mode <mode>', 'when taking snapshots for responses, specifies the mode to use. Can be "incremental", "full", or "none". Default is incremental.')
-      .option('--storage-state <path>', 'path to the storage state file for isolated sessions.')
-      .option('--test-id-attribute <attribute>', 'specify the attribute to use for test ids, defaults to "data-testid"')
-      .option('--timeout-action <timeout>', 'specify action timeout in milliseconds, defaults to 5000ms', numberParser)
-      .option('--timeout-navigation <timeout>', 'specify navigation timeout in milliseconds, defaults to 60000ms', numberParser)
-      .option('--user-agent <ua string>', 'specify user agent string')
-      .option('--user-data-dir <path>', 'path to the user data directory. If not specified, a temporary directory will be created.')
-      .option('--viewport-size <size>', 'specify browser viewport size in pixels, for example "1280x720"', resolutionParser.bind(null, '--viewport-size'))
-      .addOption(new ProgramOption('--vision', 'Legacy option, use --caps=vision instead').hideHelp())
-      .action(async options => {
-        setupExitWatchdog();
+    .option('--allowed-hosts <hosts...>', 'comma-separated list of hosts this server is allowed to serve from. Defaults to the host the server is bound to. Pass \'*\' to disable the host check.', commaSeparatedList)
+    .option('--allowed-origins <origins>', 'semicolon-separated list of TRUSTED origins to allow the browser to request. Default is to allow all.\nImportant: *does not* serve as a security boundary and *does not* affect redirects. ', semicolonSeparatedList)
+    .option('--allow-unrestricted-file-access', 'allow access to files outside of the workspace roots. Also allows unrestricted access to file:// URLs. By default access to file system is restricted to workspace root directories (or cwd if no roots are configured) only, and navigation to file:// URLs is blocked.')
+    .option('--blocked-origins <origins>', 'semicolon-separated list of origins to block the browser from requesting. Blocklist is evaluated before allowlist. If used without the allowlist, requests not matching the blocklist are still allowed.\nImportant: *does not* serve as a security boundary and *does not* affect redirects.', semicolonSeparatedList)
+    .option('--block-service-workers', 'block service workers')
+    .option('--browser <browser>', 'browser or chrome channel to use, possible values: chrome, firefox, webkit, msedge.')
+    .option('--caps <caps>', 'comma-separated list of additional capabilities to enable, possible values: vision, pdf, geolocation.', commaSeparatedList)
+    .option('--cdp-endpoint <endpoint>', 'CDP endpoint to connect to.')
+    .option('--cdp-header <headers...>', 'CDP headers to send with the connect request, multiple can be specified.', headerParser)
+    .option('--config <path>', 'path to the configuration file.')
+    .option('--console-level <level>', 'level of console messages to return: "error", "warning", "info", "debug". Each level includes the messages of more severe levels.', enumParser.bind(null, '--console-level', ['error', 'warning', 'info', 'debug']))
+    .option('--device <device>', 'device to emulate, for example: "iPhone 15"')
+    .option('--executable-path <path>', 'path to the browser executable.')
+    .option('--extension', 'Connect to a running browser instance (Edge/Chrome only). Requires the "Playwright MCP Bridge" browser extension to be installed.')
+    .option('--grant-permissions <permissions...>', 'List of permissions to grant to the browser context, for example "geolocation", "clipboard-read", "clipboard-write".', commaSeparatedList)
+    .option('--headless', 'run browser in headless mode, headed by default')
+    .option('--host <host>', 'host to bind server to. Default is localhost. Use 0.0.0.0 to bind to all interfaces.')
+    .option('--ignore-https-errors', 'ignore https errors')
+    .option('--init-page <path...>', 'path to TypeScript file to evaluate on Playwright page object')
+    .option('--init-script <path...>', 'path to JavaScript file to add as an initialization script. The script will be evaluated in every page before any of the page\'s scripts. Can be specified multiple times.')
+    .option('--isolated', 'keep the browser profile in memory, do not save it to disk.')
+    .option('--image-responses <mode>', 'whether to send image responses to the client. Can be "allow" or "omit", Defaults to "allow".', enumParser.bind(null, '--image-responses', ['allow', 'omit']))
+    .option('--no-sandbox', 'disable the sandbox for all process types that are normally sandboxed.')
+    .option('--output-dir <path>', 'path to the directory for output files.')
+    .option('--port <port>', 'port to listen on for SSE transport.')
+    .option('--proxy-bypass <bypass>', 'comma-separated domains to bypass proxy, for example ".com,chromium.org,.domain.com"')
+    .option('--proxy-server <proxy>', 'specify proxy server, for example "http://myproxy:3128" or "socks5://myproxy:8080"')
+    .option('--save-session', 'Whether to save the Playwright MCP session into the output directory.')
+    .option('--save-trace', 'Whether to save the Playwright Trace of the session into the output directory.')
+    .option('--save-video <size>', 'Whether to save the video of the session into the output directory. For example "--save-video=800x600"', resolutionParser.bind(null, '--save-video'))
+    .option('--secrets <path>', 'path to a file containing secrets in the dotenv format', dotenvFileLoader)
+    .option('--shared-browser-context', 'reuse the same browser context between all connected HTTP clients.')
+    .option('--snapshot-mode <mode>', 'when taking snapshots for responses, specifies the mode to use. Can be "incremental", "full", or "none". Default is incremental.')
+    .option('--storage-state <path>', 'path to the storage state file for isolated sessions.')
+    .option('--test-id-attribute <attribute>', 'specify the attribute to use for test ids, defaults to "data-testid"')
+    .option('--timeout-action <timeout>', 'specify action timeout in milliseconds, defaults to 5000ms', numberParser)
+    .option('--timeout-navigation <timeout>', 'specify navigation timeout in milliseconds, defaults to 60000ms', numberParser)
+    .option('--user-agent <ua string>', 'specify user agent string')
+    .option('--user-data-dir <path>', 'path to the user data directory. If not specified, a temporary directory will be created.')
+    .option('--viewport-size <size>', 'specify browser viewport size in pixels, for example "1280x720"', resolutionParser.bind(null, '--viewport-size'))
+    .addOption(new ProgramOption('--vision', 'Legacy option, use --caps=vision instead').hideHelp())
+    .action(async options => {
+      setupExitWatchdog();
 
-        if (options.vision) {
-          console.error('The --vision option is deprecated, use --caps=vision instead');
-          options.caps = 'vision';
-        }
+      if (options.vision) {
+        console.error('The --vision option is deprecated, use --caps=vision instead');
+        options.caps = 'vision';
+      }
 
-        const config = await resolveCLIConfig(options);
+      const config = await resolveCLIConfig(options);
 
-        // Chromium browsers require ffmpeg to be installed to save video.
-        if (config.saveVideo && !checkFfmpeg()) {
-          console.error(colors.red(`\nError: ffmpeg required to save the video is not installed.`));
-          console.error(`\nPlease run the command below. It will install a local copy of ffmpeg and will not change any system-wide settings.`);
-          console.error(`\n    npx playwright install ffmpeg\n`);
-          // eslint-disable-next-line no-restricted-properties
-          process.exit(1);
-        }
+      // Chromium browsers require ffmpeg to be installed to save video.
+      if (config.saveVideo && !checkFfmpeg()) {
+        console.error(colors.red(`\nError: ffmpeg required to save the video is not installed.`));
+        console.error(`\nPlease run the command below. It will install a local copy of ffmpeg and will not change any system-wide settings.`);
+        console.error(`\n    npx playwright install ffmpeg\n`);
+        // eslint-disable-next-line no-restricted-properties
+        process.exit(1);
+      }
 
-        const browserContextFactory = contextFactory(config);
-        const extensionContextFactory = new ExtensionContextFactory(config.browser.launchOptions.channel || 'chrome', config.browser.userDataDir, config.browser.launchOptions.executablePath);
+      const browserContextFactory = contextFactory(config);
+      const extensionContextFactory = new ExtensionContextFactory(config.browser.launchOptions.channel || 'chrome', config.browser.userDataDir, config.browser.launchOptions.executablePath);
 
-        if (options.extension) {
-          const serverBackendFactory: mcpServer.ServerBackendFactory = {
-            name: 'Playwright w/ extension',
-            nameInConfig: 'playwright-extension',
-            version,
-            create: () => new BrowserServerBackend(config, extensionContextFactory)
-          };
-          await mcpServer.start(serverBackendFactory, config.server);
-          return;
-        }
-
-        const factory: mcpServer.ServerBackendFactory = {
-          name: 'Playwright',
-          nameInConfig: 'playwright',
+      if (options.extension) {
+        const serverBackendFactory: mcpServer.ServerBackendFactory = {
+          name: 'Playwright w/ extension',
+          nameInConfig: 'playwright-extension',
           version,
-          create: () => new BrowserServerBackend(config, browserContextFactory)
+          create: () => new BrowserServerBackend(config, extensionContextFactory)
         };
-        await mcpServer.start(factory, config.server);
-      });
+        await mcpServer.start(serverBackendFactory, config.server);
+        return;
+      }
+
+      const factory: mcpServer.ServerBackendFactory = {
+        name: 'Playwright',
+        nameInConfig: 'playwright',
+        version,
+        create: () => new BrowserServerBackend(config, browserContextFactory)
+      };
+      await mcpServer.start(factory, config.server);
+    });
 }
 
 function checkFfmpeg(): boolean {
diff --git a/tests/mcp/geolocation.spec.ts b/tests/mcp/geolocation.spec.ts
new file mode 100644
index 0000000000000..5f2ed734a1953
--- /dev/null
+++ b/tests/mcp/geolocation.spec.ts
@@ -0,0 +1,95 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { test, expect } from './fixtures';
+
+test('test geolocation capability available with --caps=geolocation', async ({ startClient }) => {
+    const { client } = await startClient({
+        args: ['--caps=geolocation'],
+    });
+    const { tools } = await client.listTools();
+    const toolNames = tools.map(t => t.name);
+    expect(toolNames).toContain('browser_set_geolocation');
+    expect(toolNames).toContain('browser_clear_geolocation');
+});
+
+test('browser_set_geolocation', async ({ startClient, server }) => {
+    server.setContent('/', `
+    <title>Geolocation Test</title>
+    <div id="coords">Waiting...</div>
+    <script>
+      navigator.geolocation.getCurrentPosition(
+        (pos) => {
+          document.getElementById('coords').textContent = 
+            'Lat: ' + pos.coords.latitude.toFixed(2) + ', Lng: ' + pos.coords.longitude.toFixed(2);
+        },
+        (err) => {
+          document.getElementById('coords').textContent = 'Error: ' + err.message;
+        }
+      );
+    </script>
+  `, 'text/html');
+
+    const { client } = await startClient({
+        args: ['--caps=geolocation'],
+    });
+
+    // Set geolocation to San Francisco coordinates
+    expect(await client.callTool({
+        name: 'browser_set_geolocation',
+        arguments: {
+            latitude: 37.7749,
+            longitude: -122.4194,
+            accuracy: 100,
+        },
+    })).toHaveResponse({
+        code: expect.stringContaining(`await page.context().setGeolocation`),
+    });
+
+    // Navigate to page - geolocation will be fetched automatically
+    await client.callTool({
+        name: 'browser_navigate',
+        arguments: { url: server.PREFIX },
+    });
+
+    // Verify the mocked coordinates are returned
+    await expect.poll(() => client.callTool({ name: 'browser_snapshot' })).toHaveResponse({
+        pageState: expect.stringContaining('Lat: 37.77'),
+    });
+});
+
+test('browser_clear_geolocation', async ({ startClient }) => {
+    const { client } = await startClient({
+        args: ['--caps=geolocation'],
+    });
+
+    // Set geolocation first
+    await client.callTool({
+        name: 'browser_set_geolocation',
+        arguments: {
+            latitude: 37.7749,
+            longitude: -122.4194,
+        },
+    });
+
+    // Clear geolocation
+    expect(await client.callTool({
+        name: 'browser_clear_geolocation',
+        arguments: {},
+    })).toHaveResponse({
+        code: expect.stringContaining(`await page.context().setGeolocation(null)`),
+    });
+});