diff --git a/code/core/src/component-testing/components/Panel.test.ts b/code/core/src/component-testing/components/Panel.test.ts
index bcf177b349ab..6915e38d8ee2 100644
--- a/code/core/src/component-testing/components/Panel.test.ts
+++ b/code/core/src/component-testing/components/Panel.test.ts
@@ -259,6 +259,101 @@ describe('Panel', () => {
       ]);
     });
 
+    it('does not hide waitFor after a collapsed step', () => {
+      const stepLog: LogItem[] = [
+        { callId: 'story--id [0] step', status: CallStates.DONE, ancestors: [] },
+        {
+          callId: 'story--id [0] step [0] click',
+          status: CallStates.DONE,
+          ancestors: ['story--id [0] step'],
+        },
+        { callId: 'story--id [1] waitFor', status: CallStates.DONE, ancestors: [] },
+        {
+          callId: 'story--id [1] waitFor [0] toHaveBeenCalledWith',
+          status: CallStates.DONE,
+          ancestors: ['story--id [1] waitFor'],
+        },
+      ];
+      const stepCalls = new Map<Call['id'], Call>(
+        [
+          {
+            id: 'story--id [0] step',
+            storyId: 'story--id',
+            ancestors: [],
+            cursor: 0,
+            path: [],
+            method: 'step',
+            args: ['Fill and submit form'],
+            interceptable: true,
+            retain: false,
+          },
+          {
+            id: 'story--id [0] step [0] click',
+            storyId: 'story--id',
+            ancestors: ['story--id [0] step'],
+            cursor: 0,
+            path: ['userEvent'],
+            method: 'click',
+            args: [],
+            interceptable: true,
+            retain: false,
+          },
+          {
+            id: 'story--id [1] waitFor',
+            storyId: 'story--id',
+            ancestors: [],
+            cursor: 1,
+            path: [],
+            method: 'waitFor',
+            args: [],
+            interceptable: true,
+            retain: false,
+          },
+          {
+            id: 'story--id [1] waitFor [0] toHaveBeenCalledWith',
+            storyId: 'story--id',
+            ancestors: ['story--id [1] waitFor'],
+            cursor: 0,
+            path: [],
+            method: 'toHaveBeenCalledWith',
+            args: [],
+            interceptable: true,
+            retain: false,
+          },
+        ].map((v) => [v.id, v])
+      );
+
+      const stepCollapsed = new Set<Call['id']>(['story--id [0] step']);
+
+      const result = getInteractions({
+        log: stepLog,
+        calls: stepCalls,
+        collapsed: stepCollapsed,
+        setCollapsed,
+      });
+
+      // Step's child should be hidden
+      expect(result).toEqual([
+        expect.objectContaining({ id: 'story--id [0] step', isHidden: false, isCollapsed: true }),
+        expect.objectContaining({
+          id: 'story--id [0] step [0] click',
+          isHidden: true,
+          isCollapsed: false,
+        }),
+        // waitFor and its children should NOT be hidden by the collapsed step
+        expect.objectContaining({
+          id: 'story--id [1] waitFor',
+          isHidden: false,
+          isCollapsed: false,
+        }),
+        expect.objectContaining({
+          id: 'story--id [1] waitFor [0] toHaveBeenCalledWith',
+          isHidden: false,
+          isCollapsed: false,
+        }),
+      ]);
+    });
+
     it('uses status from log', () => {
       const withError = log.slice(0, 4).concat({ ...log[4], status: CallStates.ERROR });
 
diff --git a/code/core/src/instrumenter/instrumenter.test.ts b/code/core/src/instrumenter/instrumenter.test.ts
index a3eea57e1da1..a8a2e0e2a97c 100644
--- a/code/core/src/instrumenter/instrumenter.test.ts
+++ b/code/core/src/instrumenter/instrumenter.test.ts
@@ -396,6 +396,60 @@ describe('Instrumenter', () => {
     );
   });
 
+  it('does not nest calls after an interceptable step into that step', async () => {
+    // Simulate the step function (intercept: true, async, takes a callback)
+    const { step } = instrument(
+      {
+        step: async (label: string, play: Function) => play(),
+      },
+      { intercept: true }
+    );
+
+    // Simulate waitFor (intercept: true, takes a callback, calls it synchronously)
+    const { waitFor } = instrument(
+      {
+        waitFor: (callback: Function) => callback(),
+      },
+      { intercept: true }
+    );
+
+    // Simulate an inner instrumented function (like expect().toHaveBeenCalledWith())
+    const { fn1, fn2 } = instrument({ fn1: () => {}, fn2: () => {} });
+
+    setRenderPhase('playing');
+
+    // step("label", async () => { fn1() })
+    await step('label', async () => {
+      fn1();
+    });
+
+    // waitFor(() => { fn2() }) — should NOT be nested inside step
+    waitFor(() => {
+      fn2();
+    });
+
+    // step itself should have ancestors: []
+    expect(mocks.callSpy).toHaveBeenCalledWith(
+      expect.objectContaining({ method: 'step', ancestors: [] })
+    );
+    // fn1 inside step callback should have ancestors: [step_id]
+    const stepCall = mocks.callSpy.mock.calls.find((c: any) => c[0].method === 'step');
+    const stepCallId = stepCall![0].id;
+    expect(mocks.callSpy).toHaveBeenCalledWith(
+      expect.objectContaining({ method: 'fn1', ancestors: [stepCallId] })
+    );
+    // waitFor should have ancestors: [] (NOT nested inside step)
+    expect(mocks.callSpy).toHaveBeenCalledWith(
+      expect.objectContaining({ method: 'waitFor', ancestors: [] })
+    );
+    // fn2 inside waitFor callback should have ancestors: [waitFor_id] only
+    const waitForCall = mocks.callSpy.mock.calls.find((c: any) => c[0].method === 'waitFor');
+    const waitForCallId = waitForCall![0].id;
+    expect(mocks.callSpy).toHaveBeenCalledWith(
+      expect.objectContaining({ method: 'fn2', ancestors: [waitForCallId] })
+    );
+  });
+
   it('instruments the call result to support chaining', () => {
     const { fn1 } = instrument({
       fn1: () => ({