diff --git a/test/common/test-error-reporter.js b/test/common/test-error-reporter.js
new file mode 100644
index 00000000000000..3098b10885f19d
--- /dev/null
+++ b/test/common/test-error-reporter.js
@@ -0,0 +1,35 @@
+'use strict';
+const { relative } = require('node:path');
+const { inspect } = require('node:util');
+const cwd = process.cwd();
+
+module.exports = async function* errorReporter(source) {
+  for await (const event of source) {
+    if (event.type === 'test:fail') {
+      const { name, details, line, column, file } = event.data;
+      let { error } = details;
+
+      if (error?.failureType === 'subtestsFailed') {
+        // In the interest of keeping things concise, skip failures that are
+        // only due to nested failures.
+        continue;
+      }
+
+      if (error?.code === 'ERR_TEST_FAILURE') {
+        error = error.cause;
+      }
+
+      const output = [
+        `Test failure: '${name}'`,
+      ];
+
+      if (file) {
+        output.push(`Location: ${relative(cwd, file)}:${line}:${column}`);
+      }
+
+      output.push(inspect(error));
+      output.push('\n');
+      yield output.join('\n');
+    }
+  }
+};