diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/js/testing/karma/KotlinKarma.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/js/testing/karma/KotlinKarma.kt
index 1c51e514044..1a5974fff0e 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/js/testing/karma/KotlinKarma.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/js/testing/karma/KotlinKarma.kt
@@ -352,8 +352,9 @@ class KotlinKarma(override val compilation: KotlinJsCompilation) : KotlinJsTestF
 
                     override fun processStackTrace(stackTrace: String): String {
                         return stackTrace.lines()
+                            .map(::processName)
                             .joinToString("\n") { line ->
-                                val index = line.indexOf(KARMA_SOURCE_MAP_DELIMETER)
+                                val index = line.indexOf(KARMA_SOURCE_MAP_DELIMITER)
                                 if (index == -1)
                                     line
                                 else
@@ -364,6 +365,31 @@ class KotlinKarma(override val compilation: KotlinJsCompilation) : KotlinJsTestF
 
                     }
 
+                    private fun processName(line: String): String {
+                        // example: "at MyTest../kotlin/check-js-test-test.js.MyTest.foo (/src/test/kotlin/MyTest.kt:7:8)"
+                        // should be "at MyTest.foo (/src/test/kotlin/MyTest.kt:7:8)"
+                        val stackTraceDelimiter = line.indexOf(STACK_TRACE_DELIMITER)
+                        val webpackLocalDelimiter = line.indexOf(WEBPACK_LOCAL_DELIMITER)
+                        if (stackTraceDelimiter == -1 || webpackLocalDelimiter == -1) {
+                            return line
+                        }
+
+                        val traceStartIndex = stackTraceDelimiter + STACK_TRACE_DELIMITER.length
+                        val name = line.substring(
+                            traceStartIndex,
+                            webpackLocalDelimiter
+                        ) // MyTest
+                        val fileStart = line.indexOf("(")
+                        val fullJsName = line.substring(webpackLocalDelimiter, fileStart) // ../kotlin/check-js-test-test.js.MyTest.foo
+
+                        val nameIndex = fullJsName.indexOf(name)
+                        if (nameIndex == -1) {
+                            return line
+                        }
+
+                        return line.replaceRange(traceStartIndex, fileStart, fullJsName.substring(nameIndex))
+                    }
+
                     override fun getSuiteName(message: BaseTestSuiteMessage): String {
                         val src = message.suiteName.trim()
                         // example: "sample.a DeepPackageTest Inner.HeadlessChrome 74.0.3729 (Mac OS X 10.14.4)"
@@ -420,7 +446,10 @@ class KotlinKarma(override val compilation: KotlinJsCompilation) : KotlinJsTestF
         const val CHROME_CANARY_BIN = "CHROME_CANARY_BIN"
 
         const val WEBPACK_PROTOCOL = "webpack://"
-        const val KARMA_SOURCE_MAP_DELIMETER = " <-"
+        const val KARMA_SOURCE_MAP_DELIMITER = " <-"
+
+        const val STACK_TRACE_DELIMITER = "at "
+        const val WEBPACK_LOCAL_DELIMITER = ".."
 
         val KARMA_PROBLEM = "(?m)^.*\\d{2} \\d{2} \\d{4,} \\d{2}:\\d{2}:\\d{2}.\\d{3}:(ERROR|WARN) \\[.*]: (.*)\$".toRegex()
     }