diff --git a/assets/tsconfig.json b/assets/tsconfig.json
index c3fc42c..4d9b085 100644
--- a/assets/tsconfig.json
+++ b/assets/tsconfig.json
@@ -1,9 +1,13 @@
 {
   "compilerOptions": {
-    "allowSyntheticDefaultImports": true,
-    "noEmit": true,
-    "jsx": "react-jsx",
+    "target": "ESNext",
+    "module": "ESNext",
+    "moduleResolution": "bundler",
     "types": ["node"],
+    "strict": true,
+    "esModuleInterop": true,
+    "skipLibCheck": true,
+    "noEmit": true
   },
-  "include": ["./src"],
+  "include": ["{{testDir}}", "playwright.config.ts"]
 }
diff --git a/src/generator.ts b/src/generator.ts
index f69c768..7679d26 100644
--- a/src/generator.ts
+++ b/src/generator.ts
@@ -159,8 +159,11 @@ export class Generator {
     for (const browserName of ['chromium', 'firefox', 'webkit'])
       sections.set(browserName, !this.options.browser || this.options.browser.includes(browserName) ? 'show' : 'comment');
 
-    if (answers.language === 'TypeScript')
-      files.set('tsconfig.json', this._readAsset('tsconfig.json'));
+    if (answers.language === 'TypeScript' && !fs.existsSync(path.join(this.rootDir, 'tsconfig.json'))) {
+      files.set('tsconfig.json', executeTemplate(this._readAsset('tsconfig.json'), {
+        testDir: answers.testDir || '.',
+      }, new Map()));
+    }
 
     files.set(`playwright.config.${fileExtension}`, executeTemplate(this._readAsset(`playwright.config.${fileExtension}`), {
       testDir: answers.testDir || '',
diff --git a/tests/integration.spec.ts b/tests/integration.spec.ts
index 2187600..c8c4504 100644
--- a/tests/integration.spec.ts
+++ b/tests/integration.spec.ts
@@ -103,6 +103,29 @@ test('should generate be able to run TS examples successfully', { lock: 'apt-get
   await exec(packageManagerToNpxCommand(packageManager), ['playwright', 'test']);
 });
 
+for (const testDir of ['tests', 'e2e']) {
+  test(`should generate a tsconfig.json that type-checks the generated files in ${testDir}`, async ({ run, exec, packageManager }) => {
+    test.skip(packageManager !== 'npm' && packageManager !== 'pnpm', 'tsc cannot resolve modules with PnP');
+    await run([], { installGitHubActions: false, testDir, language: 'TypeScript', installPlaywrightDependencies: false, installPlaywrightBrowsers: false });
+    const tsc = require.resolve('typescript/bin/tsc');
+    const { stdout } = await exec('node', [tsc, '-p', '.', '--listFilesOnly']);
+    // tsc prints absolute paths with forward slashes, resolved through symlinks (e.g. /private/var on macOS).
+    const files = stdout.split('\n').map(f => f.trim().replace(/\\/g, '/')).filter(f => f && !f.includes('/node_modules/'));
+    expect(files).toHaveLength(2);
+    expect(files.some(f => f.endsWith('/playwright.config.ts'))).toBeTruthy();
+    expect(files.some(f => f.endsWith(`/${testDir}/example.spec.ts`))).toBeTruthy();
+    await exec('node', [tsc, '-p', '.']);
+  });
+}
+
+test('should not overwrite an existing tsconfig.json', async ({ run, dir }) => {
+  const tsconfig = JSON.stringify({ compilerOptions: { strict: true } });
+  fs.writeFileSync(path.join(dir, 'tsconfig.json'), tsconfig);
+  await run(['--quiet'], { installGitHubActions: false, testDir: 'tests', language: 'TypeScript', installPlaywrightDependencies: false, installPlaywrightBrowsers: false });
+  expect(fs.readFileSync(path.join(dir, 'tsconfig.json'), 'utf8')).toBe(tsconfig);
+  expect(fs.existsSync(path.join(dir, 'playwright.config.ts'))).toBeTruthy();
+});
+
 test('should generate be able to run JS examples successfully', { lock: 'apt-get' }, async ({ run, dir, exec, packageManager }) => {
   test.slow();
   await run([], { installGitHubActions: false, testDir: 'tests', language: 'JavaScript', installPlaywrightDependencies: false, installPlaywrightBrowsers: true });