diff --git a/packages/playwright-core/src/remote/playwrightServer.ts b/packages/playwright-core/src/remote/playwrightServer.ts
index 960a4a6e278a0..c1928ce1e6b5e 100644
--- a/packages/playwright-core/src/remote/playwrightServer.ts
+++ b/packages/playwright-core/src/remote/playwrightServer.ts
@@ -84,6 +84,8 @@ export class PlaywrightServer {
           return { error: `HTTP/${request.httpVersion} 428 Precondition Required\r\n\r\n${uaError}` };
       },
 
+      isAllowedPathname: pathname => pathname === this._options.path,
+
       onHeaders: headers => {
         if (process.env.PWTEST_SERVER_WS_HEADERS)
           headers.push(process.env.PWTEST_SERVER_WS_HEADERS!);
diff --git a/packages/playwright-core/src/remote/playwrightWebSocketServer.ts b/packages/playwright-core/src/remote/playwrightWebSocketServer.ts
index 11e9c3786dc8d..9465f8b442633 100644
--- a/packages/playwright-core/src/remote/playwrightWebSocketServer.ts
+++ b/packages/playwright-core/src/remote/playwrightWebSocketServer.ts
@@ -26,9 +26,12 @@ import type { PlaywrightInitializeResult } from './playwrightConnection';
 export class PlaywrightWebSocketServer {
   private _wsServer: WSServer;
   private _browser: Browser;
+  private _path: string;
 
   constructor(browser: Browser, path: string) {
     this._browser = browser;
+    this._path = path;
+
     browser.on(Browser.Events.Disconnected, () => this.close());
 
     const semaphore = new Semaphore(Infinity);
@@ -38,6 +41,7 @@ export class PlaywrightWebSocketServer {
       },
       onUpgrade: () => undefined,
       onHeaders: () => {},
+      isAllowedPathname: pathname => pathname === this._path,
       onConnection: (request, url, ws, id) => {
         debugLogger.log('server', `[${id}] ws client connected`);
         return new PlaywrightConnection(
@@ -61,8 +65,8 @@ export class PlaywrightWebSocketServer {
     };
   }
 
-  async listen(port: number = 0, hostname?: string, path?: string): Promise<string> {
-    return await this._wsServer.listen(port, hostname, path || '/');
+  async listen(port: number = 0, hostname?: string): Promise<string> {
+    return await this._wsServer.listen(port, hostname, this._path);
   }
 
   async close() {
diff --git a/packages/playwright-core/src/server/browser.ts b/packages/playwright-core/src/server/browser.ts
index 56fff6415a054..608fdab72caf2 100644
--- a/packages/playwright-core/src/server/browser.ts
+++ b/packages/playwright-core/src/server/browser.ts
@@ -222,8 +222,8 @@ export class BrowserServer {
 
     let endpoint: string;
     if (options.host !== undefined || options.port !== undefined) {
-      this._wsServer = new PlaywrightWebSocketServer(this._browser, '/');
-      endpoint = await this._wsServer.listen(options.port ?? 0, options.host, '/' + createGuid());
+      this._wsServer = new PlaywrightWebSocketServer(this._browser, '/' + createGuid());
+      endpoint = await this._wsServer.listen(options.port ?? 0, options.host);
     } else {
       this._pipeServer = new PlaywrightPipeServer(this._browser);
       this._pipeSocketPath = await this._socketPath();
diff --git a/packages/playwright-core/src/tools/mcp/cdpRelay.ts b/packages/playwright-core/src/tools/mcp/cdpRelay.ts
index 2de9348bf62b7..e24ae1a6c42d8 100644
--- a/packages/playwright-core/src/tools/mcp/cdpRelay.ts
+++ b/packages/playwright-core/src/tools/mcp/cdpRelay.ts
@@ -26,16 +26,15 @@
  */
 
 import { spawn } from 'child_process';
-import http from 'http';
 import os from 'os';
 
 import debug from 'debug';
-import ws, { WebSocketServer as wsServer } from 'ws';
+import ws from 'ws';
 import { ManualPromise } from '@isomorphic/manualPromise';
+import { WSServer } from '@utils/wsServer';
 import { registry } from '../../server/registry/index';
 
 import { findPlaywrightExtensionProfile, playwrightExtensionId } from '../utils/extension';
-import { addressToString } from '../utils/mcp/http';
 import { logUnhandledError } from './log';
 import { ExtensionProtocolV2 } from './cdpRelayV2';
 import * as protocol from './protocol';
@@ -43,7 +42,7 @@ import * as protocol from './protocol';
 import type websocket from 'ws';
 import type { ExtensionCommandV2, ExtensionEventsV2 } from './protocol';
 import type { CDPMessage } from './browserModel';
-import type { WebSocket, WebSocketServer } from 'ws';
+import type { WebSocket } from 'ws';
 
 
 const debugLogger = debug('pw:mcp:relay');
@@ -58,23 +57,20 @@ type CDPCommand = {
 type CDPResponse = CDPMessage;
 
 export class CDPRelayServer {
-  private _httpServer: http.Server;
-  private _wsHost: string;
+  private _wsServer: WSServer;
+  private _wsHost!: string;
   private _browserChannel: string;
   private _executablePath?: string;
   private _userDataDir?: string;
   private _cdpPath: string;
   private _extensionPath: string;
-  private _wss: WebSocketServer;
   private _cdpConnection: WebSocket | null = null;
   private _extensionConnection: ExtensionConnection | null = null;
   private _protocolVersion: number;
   private _handler: ExtensionProtocolV2;
   private _extensionConnectionPromise = new ManualPromise<void>();
 
-  constructor(server: http.Server, browserChannel: string, executablePath?: string, userDataDir?: string) {
-    this._httpServer = server;
-    this._wsHost = addressToString(server.address(), { protocol: 'ws' });
+  constructor(browserChannel: string, executablePath?: string, userDataDir?: string) {
     this._browserChannel = browserChannel;
     this._executablePath = executablePath;
     this._userDataDir = userDataDir;
@@ -92,8 +88,27 @@ export class CDPRelayServer {
     this._extensionPath = `/extension/${uuid}`;
 
     void this._extensionConnectionPromise.catch(logUnhandledError);
-    this._wss = new wsServer({ server });
-    this._wss.on('connection', this._onConnection.bind(this));
+    this._wsServer = new WSServer({
+      onRequest: (request, response) => {
+        response.statusCode = 404;
+        response.end();
+      },
+      onHeaders: () => {},
+      onUpgrade: () => undefined,
+      isAllowedPathname: pathname => pathname === this._cdpPath || pathname === this._extensionPath,
+      onConnection: (request, url, ws) => {
+        debugLogger(`New connection to ${url.pathname}`);
+        if (url.pathname === this._cdpPath)
+          this._handlePlaywrightConnection(ws);
+        else
+          this._handleExtensionConnection(ws);
+        return undefined;
+      },
+    });
+  }
+
+  async start(): Promise<void> {
+    this._wsHost = await this._wsServer.listen(0, undefined, '');
   }
 
   cdpEndpoint() {
@@ -161,8 +176,7 @@ export class CDPRelayServer {
 
   stop(): void {
     this._closeConnections('Server stopped');
-    this._wss.close();
-    this._httpServer.close();
+    void this._wsServer.close().catch(logUnhandledError);
   }
 
   private _closeConnections(reason: string) {
@@ -170,19 +184,6 @@ export class CDPRelayServer {
     this._closeExtensionConnection(reason);
   }
 
-  private _onConnection(ws: WebSocket, request: http.IncomingMessage): void {
-    const url = new URL(`http://localhost${request.url}`);
-    debugLogger(`New connection to ${url.pathname}`);
-    if (url.pathname === this._cdpPath) {
-      this._handlePlaywrightConnection(ws);
-    } else if (url.pathname === this._extensionPath) {
-      this._handleExtensionConnection(ws);
-    } else {
-      debugLogger(`Invalid path: ${url.pathname}`);
-      ws.close(4004, 'Invalid path');
-    }
-  }
-
   private _handlePlaywrightConnection(ws: WebSocket): void {
     if (!this._extensionConnection) {
       debugLogger('Rejecting Playwright connection: extension not connected');
diff --git a/packages/playwright-core/src/tools/mcp/extensionContextFactory.ts b/packages/playwright-core/src/tools/mcp/extensionContextFactory.ts
index 8c3f6f3e8bac7..c8c8d1d8cca6e 100644
--- a/packages/playwright-core/src/tools/mcp/extensionContextFactory.ts
+++ b/packages/playwright-core/src/tools/mcp/extensionContextFactory.ts
@@ -15,7 +15,6 @@
  */
 
 import debug from 'debug';
-import { createHttpServer, startHttpServer } from '@utils/network';
 import { defaultUserDataDirForChannel } from '@utils/chromiumChannels';
 import { playwright } from '../../inprocess';
 import { isPlaywrightExtensionInstalled, playwrightExtensionInstallUrl } from '../utils/extension';
@@ -34,9 +33,8 @@ export async function createExtensionBrowser(channel: string, executablePath: st
       throw new Error(`Playwright Extension not found in "${userDataDir}". Install it from ${playwrightExtensionInstallUrl}`);
   }
 
-  const httpServer = createHttpServer();
-  await startHttpServer(httpServer, {});
-  const relay = new CDPRelayServer(httpServer, channel, executablePath, userDataDir);
+  const relay = new CDPRelayServer(channel, executablePath, userDataDir);
+  await relay.start();
   debugLogger(`CDP relay server started, extension endpoint: ${relay.extensionEndpoint()}.`);
 
   try {
diff --git a/packages/utils/httpServer.ts b/packages/utils/httpServer.ts
index 4e36467248c14..e85b30d4af686 100644
--- a/packages/utils/httpServer.ts
+++ b/packages/utils/httpServer.ts
@@ -89,6 +89,11 @@ export class HttpServer {
       const pathname = new URL(request.url ?? '/', 'http://localhost').pathname;
       if (pathname !== wsPath)
         return;
+      if (!isAllowedHost(request, this._allowedHosts)) {
+        socket.write(`HTTP/${request.httpVersion} 403 Forbidden\r\n\r\n`);
+        socket.destroy();
+        return;
+      }
       wss.handleUpgrade(request, socket, head, ws => wss.emit('connection', ws, request));
     });
     // HMR end
@@ -268,14 +273,10 @@ export class HttpServer {
       return;
     }
 
-    if (this._allowedHosts) {
-      const host = request.headers.host?.toLowerCase();
-      const hostname = host ? hostnameFromHostHeader(host) : undefined;
-      if (!hostname || !this._allowedHosts.has(hostname)) {
-        response.statusCode = 403;
-        response.end();
-        return;
-      }
+    if (!isAllowedHost(request, this._allowedHosts)) {
+      response.statusCode = 403;
+      response.end();
+      return;
     }
 
     request.on('error', () => response.end());
@@ -309,12 +310,21 @@ export function computeAllowedHosts(requested: string | undefined, bound: string
   return new Set(['localhost', '127.0.0.1', '[::1]']);
 }
 
+// A null allowlist disables the check (server deliberately bound to a public address).
+export function isAllowedHost(request: http.IncomingMessage, allowedHosts: Set<string> | null): boolean {
+  if (!allowedHosts)
+    return true;
+  const host = request.headers.host?.toLowerCase();
+  const hostname = host ? hostnameFromHostHeader(host) : undefined;
+  return !!hostname && allowedHosts.has(hostname);
+}
+
 // Bracket IPv6 literals so they can be used as the host part of a URL.
 export function urlHostFromAddress(address: { address: string, family: string }): string {
   return address.family === 'IPv6' ? `[${address.address}]` : address.address;
 }
 
-export function hostnameFromHostHeader(host: string): string {
+function hostnameFromHostHeader(host: string): string {
   if (host.startsWith('[')) {
     const end = host.indexOf(']');
     return end < 0 ? host : host.substring(0, end + 1);
diff --git a/packages/utils/wsServer.ts b/packages/utils/wsServer.ts
index 93625ecb60ed0..1715dea87c4f8 100644
--- a/packages/utils/wsServer.ts
+++ b/packages/utils/wsServer.ts
@@ -15,7 +15,7 @@
  */
 
 import { WebSocketServer as wsServer } from 'ws';
-import { computeAllowedHosts, hostnameFromHostHeader, urlHostFromAddress } from './httpServer';
+import { computeAllowedHosts, isAllowedHost, urlHostFromAddress } from './httpServer';
 import { createHttpServer } from './network';
 import { debugLogger } from './debugLogger';
 
@@ -46,7 +46,8 @@ export type WSServerDelegate = {
   onRequest: (request: http.IncomingMessage, response: http.ServerResponse) => void;
   onHeaders: (headers: string[]) => void;
   onUpgrade: (request: http.IncomingMessage, socket: stream.Duplex) => { error: string } | undefined;
-  onConnection: (request: http.IncomingMessage, url: URL, ws: WebSocket, id: string) => WSConnection;
+  onConnection: (request: http.IncomingMessage, url: URL, ws: WebSocket, id: string) => WSConnection | undefined;
+  isAllowedPathname: (pathname: string) => boolean;
 };
 
 export class WSServer {
@@ -60,7 +61,7 @@ export class WSServer {
     this._delegate = delegate;
   }
 
-  async listen(port: number = 0, hostname: string | undefined, path: string): Promise<string> {
+  async listen(port: number = 0, hostname: string | undefined, defaultPath: string): Promise<string> {
     debugLogger.log('server', `Server started at ${new Date()}`);
 
     // Default to loopback so the WebSocket RPC is not exposed to the network unless
@@ -79,14 +80,14 @@ export class WSServer {
           return;
         }
         if (typeof address === 'string') {
-          resolve(`${address}${path}`);
+          resolve(`${address}${defaultPath}`);
           return;
         }
         // Advertise the bound IP literal in the wsEndpoint so the client connects to
         // the same address family the server bound to. Otherwise the client and
         // server resolvers can disagree on what 'localhost' means (see #40605).
         this._allowedHosts = computeAllowedHosts(hostname, address.address);
-        resolve(`ws://${urlHostFromAddress(address)}:${address.port}${path}`);
+        resolve(`ws://${urlHostFromAddress(address)}:${address.port}${defaultPath}`);
       }).on('error', reject);
     });
 
@@ -101,12 +102,12 @@ export class WSServer {
 
     server.on('upgrade', (request, socket, head) => {
       const pathname = new URL('http://localhost' + request.url!).pathname;
-      if (pathname !== path) {
+      if (!this._delegate.isAllowedPathname(pathname)) {
         socket.write(`HTTP/${request.httpVersion} 400 Bad Request\r\n\r\n`);
         socket.destroy();
         return;
       }
-      if (this._allowedHosts && !this._isAllowedOrigin(request.headers.origin)) {
+      if (!isAllowedHost(request, this._allowedHosts) || !this._isAllowedOrigin(request.headers.origin)) {
         socket.write(`HTTP/${request.httpVersion} 403 Forbidden\r\n\r\n`);
         socket.destroy();
         return;
@@ -133,25 +134,26 @@ export class WSServer {
   }
 
   private _onRequest(request: http.IncomingMessage, response: http.ServerResponse) {
-    if (this._allowedHosts) {
-      const host = request.headers.host?.toLowerCase();
-      const hostname = host ? hostnameFromHostHeader(host) : undefined;
-      if (!hostname || !this._allowedHosts.has(hostname)) {
-        response.statusCode = 403;
-        response.end();
-        return;
-      }
+    if (!isAllowedHost(request, this._allowedHosts)) {
+      response.statusCode = 403;
+      response.end();
+      return;
     }
     this._delegate.onRequest(request, response);
   }
 
   private _isAllowedOrigin(origin: string | undefined): boolean {
-    if (!origin)
+    if (!this._allowedHosts || !origin)
       return true;
     try {
-      const hostname = new URL(origin).hostname.toLowerCase();
+      const url = new URL(origin);
+      // Only web page origins are subject to the check; e.g. browser
+      // extensions are allowed.
+      if (url.protocol !== 'http:' && url.protocol !== 'https:')
+        return true;
+      const hostname = url.hostname.toLowerCase();
       const bracketed = hostname.includes(':') ? `[${hostname}]` : hostname;
-      return this._allowedHosts!.has(hostname) || this._allowedHosts!.has(bracketed);
+      return this._allowedHosts.has(hostname) || this._allowedHosts.has(bracketed);
     } catch {
       return false;
     }
diff --git a/tests/extension/extension.spec.ts b/tests/extension/extension.spec.ts
index 17574346072f0..9945ca5a74106 100644
--- a/tests/extension/extension.spec.ts
+++ b/tests/extension/extension.spec.ts
@@ -17,6 +17,8 @@
 import fs from 'fs/promises';
 import path from 'path';
 
+import WebSocket from 'ws';
+
 import { test, testWithOldExtensionVersion, expect, extensionId, clickAllowAndSelect, connectAndNavigate, readExtensionToken, startWithExtensionFlag } from './extension-fixtures';
 import { utils } from '../../packages/playwright-core/lib/coreBundle';
 
@@ -405,3 +407,45 @@ test(`reconnects after the extension connection drops`, {
     snapshot: expect.stringContaining(`Hello, world!`),
   });
 });
+
+test(`relay rejects websocket upgrades with forged host or origin`, {
+  annotation: { type: 'issue', description: 'https://github.com/microsoft/playwright-mcp/issues/1694' },
+}, async ({ startExtensionClient, server }) => {
+  const { browserContext, client } = await startExtensionClient();
+
+  const confirmationPagePromise = browserContext.waitForEvent('page', page => {
+    return page.url().startsWith(`chrome-extension://${extensionId}/connect.html`);
+  });
+  const navigateResponse = client.callTool({
+    name: 'browser_navigate',
+    arguments: { url: server.HELLO_WORLD },
+  });
+  const connectPage = await confirmationPagePromise;
+  const relayUrl = new URL(connectPage.url()).searchParams.get('mcpRelayUrl')!;
+  expect(relayUrl).toBeTruthy();
+  await clickAllowAndSelect(connectPage, 'Welcome');
+  await navigateResponse;
+
+  expect(await wsUpgradeResult(relayUrl, { host: 'evil.com' })).toBe(403);
+  expect(await wsUpgradeResult(relayUrl, { host: 'evil.com:80' })).toBe(403);
+  expect(await wsUpgradeResult(relayUrl, { origin: 'http://evil.com' })).toBe(403);
+  expect(await wsUpgradeResult(relayUrl, { origin: 'https://evil.com' })).toBe(403);
+
+  // Control: default headers pass the upgrade validation.
+  expect(await wsUpgradeResult(relayUrl)).toBe('connected');
+});
+
+function wsUpgradeResult(url: string, headers?: Record<string, string>): Promise<number | 'connected'> {
+  return new Promise((resolve, reject) => {
+    const ws = new WebSocket(url, { headers });
+    ws.on('open', () => {
+      ws.close();
+      resolve('connected');
+    });
+    ws.on('unexpected-response', (request, response) => {
+      request.destroy();
+      resolve(response.statusCode!);
+    });
+    ws.on('error', reject);
+  });
+}