diff --git a/src/installer.ts b/src/installer.ts
index 663a24ddd..e4ef8946a 100644
--- a/src/installer.ts
+++ b/src/installer.ts
@@ -72,6 +72,9 @@ export async function installPlaywright(vscode: vscodeTypes.VSCode) {
 }
 
 function quote(s: string): string {
+  // Windows cmd treats single quotes as literal characters.
+  if (process.platform === 'win32')
+    return `"${s}"`;
   return `'${s}'`;
 }
 
diff --git a/tests/installer.spec.ts b/tests/installer.spec.ts
new file mode 100644
index 000000000..fb35c3a89
--- /dev/null
+++ b/tests/installer.spec.ts
@@ -0,0 +1,82 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { expect, test } from '@playwright/test';
+import { installPlaywright } from '../src/installer';
+
+test('install command works in Windows cmd', async ({}, testInfo) => {
+  const sentTexts = await runInstallPlaywrightCommand(testInfo.outputDir, 'win32', [
+    'Chromium',
+    'Firefox',
+    'WebKit',
+    'Add GitHub Actions workflow',
+  ]);
+
+  expect(sentTexts).toEqual([
+    'npm init playwright@latest --yes "--" . "--quiet" "--browser=chromium" "--browser=firefox" "--browser=webkit" "--gha"',
+  ]);
+  expect(sentTexts[0]).not.toContain('\'');
+});
+
+test('install command preserves no-browsers option', async ({}, testInfo) => {
+  const sentTexts = await runInstallPlaywrightCommand(testInfo.outputDir, process.platform, [
+    'Use JavaScript',
+  ]);
+
+  expect(sentTexts).toEqual([
+    `npm init playwright@latest --yes "--" . ${quoteForCurrentPlatform('--quiet')} ${quoteForCurrentPlatform('--no-browsers')} ${quoteForCurrentPlatform('--lang=js')}`,
+  ]);
+});
+
+async function runInstallPlaywrightCommand(workspacePath: string, platform: NodeJS.Platform, selectedLabels: string[]): Promise<string[]> {
+  const originalPlatform = process.platform;
+  const sentTexts: string[] = [];
+  const vscode: any = {
+    QuickPickItemKind: { Separator: 'separator' },
+    workspace: {
+      workspaceFolders: [{ uri: { fsPath: workspacePath } }],
+    },
+    window: {
+      createTerminal: (options: { cwd: string }) => {
+        expect(options.cwd).toBe(workspacePath);
+        return {
+          show: () => {},
+          sendText: (text: string) => sentTexts.push(text),
+        };
+      },
+      showErrorMessage: async (message: string) => {
+        throw new Error(message);
+      },
+      showQuickPick: async (options: { label: string }[]) => {
+        return options.filter(option => selectedLabels.includes(option.label));
+      },
+    },
+  };
+
+  try {
+    Object.defineProperty(process, 'platform', { value: platform });
+    await installPlaywright(vscode);
+    return sentTexts;
+  } finally {
+    Object.defineProperty(process, 'platform', { value: originalPlatform });
+  }
+}
+
+function quoteForCurrentPlatform(s: string): string {
+  if (process.platform === 'win32')
+    return `"${s}"`;
+  return `'${s}'`;
+}