diff --git a/TUnit.Engine.Tests/GitHubReporterTests.cs b/TUnit.Engine.Tests/GitHubReporterTests.cs
index 81cf2382c9..19a25df118 100644
--- a/TUnit.Engine.Tests/GitHubReporterTests.cs
+++ b/TUnit.Engine.Tests/GitHubReporterTests.cs
@@ -1,6 +1,7 @@
 using Microsoft.Testing.Platform.Extensions.Messages;
 using Microsoft.Testing.Platform.TestHost;
 using Shouldly;
+using TUnit.Engine.Exceptions;
 using TUnit.Engine.Reporters;
 
 namespace TUnit.Engine.Tests;
@@ -260,6 +261,27 @@ await FeedTestMessages(reporter,
         output.ShouldContain("Timeout");
     }
 
+    [Test]
+    public async Task AfterRunAsync_Unwraps_TestFailedException_For_Grouping()
+    {
+        var (reporter, outputFile) = await SetupReporter();
+
+        var inner1 = new InvalidOperationException("Docker image not created");
+        var inner2 = new InvalidOperationException("Docker image not created");
+        await FeedTestMessages(reporter,
+            CreateFailedTestMessage("1", "T1", "Svc", new TestFailedException(inner1)),
+            CreateFailedTestMessage("2", "T2", "Svc", new TestFailedException(inner2))
+        );
+
+        await reporter.AfterRunAsync(1, CancellationToken.None);
+
+        var output = await File.ReadAllTextAsync(outputFile);
+        output.ShouldContain("InvalidOperationException (2 tests)");
+        output.ShouldNotContain("TestFailedException (");
+        output.ShouldContain("Docker image not created");
+        output.ShouldContain("2 × `InvalidOperationException`");
+    }
+
     [Test]
     public async Task AfterRunAsync_Other_NonPassing_Tests_Remain_Separate()
     {
diff --git a/TUnit.Engine/Exceptions/TUnitFailedException.cs b/TUnit.Engine/Exceptions/TUnitFailedException.cs
index 32ab50321f..8cad6602d2 100644
--- a/TUnit.Engine/Exceptions/TUnitFailedException.cs
+++ b/TUnit.Engine/Exceptions/TUnitFailedException.cs
@@ -1,4 +1,5 @@
-using TUnit.Core.Exceptions;
+using System.Diagnostics.CodeAnalysis;
+using TUnit.Core.Exceptions;
 using TUnit.Core.Helpers;
 using TUnit.Engine.CommandLineProviders;
 
@@ -6,8 +7,11 @@ namespace TUnit.Engine.Exceptions;
 
 public abstract class TUnitFailedException : TUnitException
 {
+    public Exception? WrappedException { get; }
+
     protected TUnitFailedException(Exception exception) : base($"{exception.GetType().Name}: {exception.Message}", exception.InnerException)
     {
+        WrappedException = exception;
         StackTrace = FilterStackTrace(exception.StackTrace);
     }
 
@@ -18,6 +22,16 @@ protected TUnitFailedException(string? message, Exception? innerException) : bas
 
     public override string StackTrace { get; }
 
+    [return: NotNullIfNotNull(nameof(exception))]
+    public static Exception? Unwrap(Exception? exception)
+    {
+        while (exception is TUnitFailedException { WrappedException: { } wrapped })
+        {
+            exception = wrapped;
+        }
+        return exception;
+    }
+
     // The hint only mentions --detailed-stacktrace because filtering is bypassed
     // entirely when --log-level Debug/Trace is set (see TUnitMessageBus.SimplifyStacktrace),
     // so users on debug logging will never see this message.
diff --git a/TUnit.Engine/Reporters/GitHubReporter.cs b/TUnit.Engine/Reporters/GitHubReporter.cs
index 0ed6afd379..da742484a0 100644
--- a/TUnit.Engine/Reporters/GitHubReporter.cs
+++ b/TUnit.Engine/Reporters/GitHubReporter.cs
@@ -9,6 +9,7 @@
 using Microsoft.Testing.Platform.Extensions.TestHost;
 using TUnit.Engine.Configuration;
 using TUnit.Engine.Constants;
+using TUnit.Engine.Exceptions;
 using TUnit.Engine.Framework;
 using TUnit.Engine.Helpers;
 
@@ -528,9 +529,9 @@ or TimeoutTestNodeStateProperty
         return stateProperty switch
         {
             FailedTestNodeStateProperty failedTestNodeStateProperty =>
-                GetTruncatedExceptionMessage(failedTestNodeStateProperty.Exception) ?? "Test failed",
+                GetTruncatedExceptionMessage(TUnitFailedException.Unwrap(failedTestNodeStateProperty.Exception)) ?? "Test failed",
             ErrorTestNodeStateProperty errorTestNodeStateProperty =>
-                GetTruncatedExceptionMessage(errorTestNodeStateProperty.Exception) ?? "Test failed",
+                GetTruncatedExceptionMessage(TUnitFailedException.Unwrap(errorTestNodeStateProperty.Exception)) ?? "Test failed",
             TimeoutTestNodeStateProperty timeoutTestNodeStateProperty => timeoutTestNodeStateProperty.Explanation,
 #pragma warning disable CS0618 // CancelledTestNodeStateProperty is obsolete
             CancelledTestNodeStateProperty => "Test was cancelled",
@@ -637,8 +638,8 @@ internal void SetReporterStyle(GitHubReporterStyle style)
 
     private static string GetExceptionTypeName(IProperty? stateProperty) => stateProperty switch
     {
-        FailedTestNodeStateProperty f => f.Exception?.GetType().Name ?? "Unknown",
-        ErrorTestNodeStateProperty e => e.Exception?.GetType().Name ?? "Unknown",
+        FailedTestNodeStateProperty f => TUnitFailedException.Unwrap(f.Exception)?.GetType().Name ?? "Unknown",
+        ErrorTestNodeStateProperty e => TUnitFailedException.Unwrap(e.Exception)?.GetType().Name ?? "Unknown",
         TimeoutTestNodeStateProperty => "Timeout",
         _ => "Unknown"
     };
diff --git a/TUnit.Engine/Reporters/Html/HtmlReporter.cs b/TUnit.Engine/Reporters/Html/HtmlReporter.cs
index 98bbc2eee4..5c3213503f 100644
--- a/TUnit.Engine/Reporters/Html/HtmlReporter.cs
+++ b/TUnit.Engine/Reporters/Html/HtmlReporter.cs
@@ -13,6 +13,7 @@
 using TUnit.Core;
 using TUnit.Engine.Configuration;
 using TUnit.Engine.Constants;
+using TUnit.Engine.Exceptions;
 using TUnit.Engine.Framework;
 
 #pragma warning disable TPEXP
@@ -593,6 +594,8 @@ private static (string Status, ReportExceptionData? Exception, string? SkipReaso
             return null;
         }
 
+        ex = TUnitFailedException.Unwrap(ex);
+
         return new ReportExceptionData
         {
             Type = ex.GetType().FullName ?? ex.GetType().Name,
diff --git a/TUnit.Engine/Xml/JUnitXmlWriter.cs b/TUnit.Engine/Xml/JUnitXmlWriter.cs
index bb7b27c015..978fe65a70 100644
--- a/TUnit.Engine/Xml/JUnitXmlWriter.cs
+++ b/TUnit.Engine/Xml/JUnitXmlWriter.cs
@@ -5,6 +5,7 @@
 using System.Text;
 using System.Xml;
 using Microsoft.Testing.Platform.Extensions.Messages;
+using TUnit.Engine.Exceptions;
 
 namespace TUnit.Engine.Xml;
 
@@ -245,7 +246,7 @@ private static void WriteFailure(XmlWriter writer, FailedTestNodeStateProperty f
     {
         writer.WriteStartElement("failure");
 
-        var exception = failed.Exception;
+        var exception = TUnitFailedException.Unwrap(failed.Exception);
         if (exception != null)
         {
             writer.WriteAttributeString("message", SanitizeForXml(exception.Message));
@@ -267,7 +268,7 @@ private static void WriteError(XmlWriter writer, ErrorTestNodeStateProperty erro
     {
         writer.WriteStartElement("error");
 
-        var exception = error.Exception;
+        var exception = TUnitFailedException.Unwrap(error.Exception);
         if (exception != null)
         {
             writer.WriteAttributeString("message", SanitizeForXml(exception.Message));