diff --git a/CHANGELOG.md b/CHANGELOG.md
index f47e609a..5d157783 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Changelog
 
+## [Unreleased]
+
+### Fixed
+
+- Fixed test progress and summaries counting each failed Swift Testing assertion as a failed test, which could report more failed tests than were run and zero passing tests ([#533](https://github.com/getsentry/MobileBuildMCP/issues/533), [#541](https://github.com/getsentry/MobileBuildMCP/pull/541) by [@breken-ai](https://github.com/breken-ai)).
+
 ## [2.7.1]
 
 ### Changed
diff --git a/src/utils/__tests__/xcodebuild-event-parser.test.ts b/src/utils/__tests__/xcodebuild-event-parser.test.ts
index a9774083..a0d26dd4 100644
--- a/src/utils/__tests__/xcodebuild-event-parser.test.ts
+++ b/src/utils/__tests__/xcodebuild-event-parser.test.ts
@@ -678,6 +678,45 @@ describe('xcodebuild-event-parser', () => {
     expect(progress).toEqual([expect.objectContaining({ completed: 2, failed: 2, skipped: 0 })]);
   });
 
+  it('counts a Swift Testing test with several issues as one failed test', () => {
+    const events = collectRunStateEvents([
+      { source: 'stdout', text: '✔ Test "passes" passed after 0.001 seconds.\n' },
+      {
+        source: 'stdout',
+        text: '✘ Test "fails" recorded an issue at CountsTests.swift:10:3: Expectation failed: first\n',
+      },
+      {
+        source: 'stdout',
+        text: '✘ Test "fails" recorded an issue at CountsTests.swift:11:3: Expectation failed: second\n',
+      },
+      {
+        source: 'stdout',
+        text: '✘ Test "fails" recorded an issue at CountsTests.swift:12:3: Expectation failed: third\n',
+      },
+      {
+        source: 'stdout',
+        text: '✘ Test "fails" failed after 0.001 seconds with 3 issues.\n',
+      },
+      {
+        source: 'stdout',
+        text: '✘ Test run with 2 tests in 1 suite failed after 0.002 seconds with 3 issues.\n',
+      },
+    ]);
+
+    expect(events.filter((event) => event.fragment === 'test-failure')).toHaveLength(3);
+    expect(events.filter((event) => event.fragment === 'test-progress').at(-1)).toMatchObject({
+      completed: 2,
+      failed: 1,
+      skipped: 0,
+    });
+    expect(events.filter((event) => event.fragment === 'build-summary').at(-1)).toMatchObject({
+      totalTests: 2,
+      passedTests: 1,
+      failedTests: 1,
+      skippedTests: 0,
+    });
+  });
+
   it('keeps parameterized Swift Testing result counts aligned with the run summary', () => {
     const events = collectRunStateEvents([
       {
diff --git a/src/utils/__tests__/xcodebuild-run-state.test.ts b/src/utils/__tests__/xcodebuild-run-state.test.ts
index f29a32de..dd50882c 100644
--- a/src/utils/__tests__/xcodebuild-run-state.test.ts
+++ b/src/utils/__tests__/xcodebuild-run-state.test.ts
@@ -394,6 +394,42 @@ Actual mismatch`,
     expect(finalState.testFailures).toHaveLength(2);
   });
 
+  it('counts several failure diagnostics from one test as one failed test', () => {
+    const forwarded: DomainFragment[] = [];
+    const state = createXcodebuildRunState({
+      operation: 'TEST',
+      onEvent: (e) => forwarded.push(e),
+    });
+
+    state.push({
+      kind: 'test-result',
+      fragment: 'test-progress',
+      operation: 'TEST',
+      completed: 2,
+      failed: 1,
+      skipped: 0,
+    });
+    for (const line of [10, 11, 12]) {
+      state.push({
+        kind: 'test-result',
+        fragment: 'test-failure',
+        operation: 'TEST',
+        test: 'fails',
+        message: `Expectation failed: ${line}`,
+        location: `CountsTests.swift:${line}:3`,
+      });
+    }
+
+    state.finalize(false);
+    expect(forwarded.at(-1)).toMatchObject({
+      fragment: 'build-summary',
+      totalTests: 2,
+      passedTests: 1,
+      failedTests: 1,
+      skippedTests: 0,
+    });
+  });
+
   it('highestStageRank returns correct rank for multi-phase handoff', () => {
     const state = createXcodebuildRunState({ operation: 'TEST' });
 
diff --git a/src/utils/swift-testing-line-parsers.ts b/src/utils/swift-testing-line-parsers.ts
index dddf20ef..60188dc5 100644
--- a/src/utils/swift-testing-line-parsers.ts
+++ b/src/utils/swift-testing-line-parsers.ts
@@ -158,8 +158,8 @@ export function parseSwiftTestingRunSummary(line: string): ParsedTotals | null {
   // Swift Testing reports "issues" not "failed tests" -- a single test can produce
   // multiple issues (e.g. multiple #expect failures). This is the best available
   // approximation; the framework doesn't report a distinct failed-test count in its
-  // summary line. Downstream reconciliation via Math.max(failedTests, testFailures.length)
-  // partially mitigates overcounting.
+  // summary line. The event parser subtracts issues already attributed to
+  // individually reported failed tests before using this value.
   const issueMatch = line.match(/with (\d+) issues?/u);
   const failed = issueMatch ? Number(issueMatch[1]) : 0;
 
diff --git a/src/utils/xcodebuild-domain-results.ts b/src/utils/xcodebuild-domain-results.ts
index b53e0997..910d3181 100644
--- a/src/utils/xcodebuild-domain-results.ts
+++ b/src/utils/xcodebuild-domain-results.ts
@@ -25,6 +25,7 @@ import { finalizeInlineXcodebuild } from './xcodebuild-output.ts';
 import type { StartedPipeline, XcodebuildPipeline } from './xcodebuild-pipeline.ts';
 import { createXcodebuildPipeline } from './xcodebuild-pipeline.ts';
 import type { XcodebuildRunState } from './xcodebuild-run-state.ts';
+import { countFailedTests } from './xcodebuild-run-state.ts';
 import { collectResolvedTestSelectors, type TestPreflightResult } from './test-preflight.ts';
 import { createStreamingExecutionContext } from './tool-execution-compat.ts';
 import { isBuildErrorDiagnosticLine } from './xcodebuild-line-parsers.ts';
@@ -185,7 +186,7 @@ function createStateTestCounts(state: XcodebuildRunState): Counts | undefined {
     return undefined;
   }
 
-  const failed = Math.max(state.failedTests, state.testFailures.length);
+  const failed = countFailedTests(state);
   const skipped = state.skippedTests;
   const passed = Math.max(0, state.completedTests - failed - skipped);
 
diff --git a/src/utils/xcodebuild-event-parser.ts b/src/utils/xcodebuild-event-parser.ts
index a91ba22b..328517fc 100644
--- a/src/utils/xcodebuild-event-parser.ts
+++ b/src/utils/xcodebuild-event-parser.ts
@@ -135,7 +135,7 @@ export function createXcodebuildEventParser(options: EventParserOptions): Xcodeb
   let failedCount = 0;
   let skippedCount = 0;
   let testCasesCompletedSinceSwiftTestingSummary = 0;
-  let testCasesFailedSinceSwiftTestingSummary = 0;
+  let issuesAccountedSinceSwiftTestingSummary = 0;
   let detectedXcresultPath: string | null = null;
 
   let pendingError: {
@@ -251,6 +251,7 @@ export function createXcodebuildEventParser(options: EventParserOptions): Xcodeb
   function recordTestCaseResult(
     testCase: ParsedTestCase,
     source: 'xcodebuild' | 'swift-testing' | 'swift-testing-native' = 'xcodebuild',
+    issueCount = 1,
   ): void {
     const increment = 1;
     completedCount += increment;
@@ -258,17 +259,15 @@ export function createXcodebuildEventParser(options: EventParserOptions): Xcodeb
 
     if (testCase.status === 'failed') {
       applyFailureDuration(testCase.suiteName, testCase.testName, durationMs);
-      if (source !== 'swift-testing-native') {
-        failedCount += increment;
-      }
+      failedCount += increment;
     } else if (testCase.status === 'skipped') {
       skippedCount += increment;
     }
 
     if (source !== 'xcodebuild') {
       testCasesCompletedSinceSwiftTestingSummary += increment;
-      if (source === 'swift-testing' && testCase.status === 'failed') {
-        testCasesFailedSinceSwiftTestingSummary += increment;
+      if (testCase.status === 'failed') {
+        issuesAccountedSinceSwiftTestingSummary += issueCount;
       }
     }
 
@@ -367,19 +366,32 @@ export function createXcodebuildEventParser(options: EventParserOptions): Xcodeb
 
     const stResult = parseSwiftTestingResultLine(line);
     if (stResult) {
-      recordTestCaseResult(stResult, 'swift-testing-native');
+      const issueMatch = line.match(/with (\d+) issues?\.?$/u);
+      recordTestCaseResult(
+        stResult,
+        'swift-testing-native',
+        issueMatch ? Number(issueMatch[1]) : 1,
+      );
       return;
     }
 
     const stSummary = parseSwiftTestingRunSummary(line);
     if (stSummary) {
-      completedCount += Math.max(
+      // The summary reports issues, not failed tests, and one test can record
+      // several issues. Only issues not already attributed to a reported failed
+      // test can mark unreported tests as failed.
+      const unreportedTests = Math.max(
         0,
         stSummary.executed - testCasesCompletedSinceSwiftTestingSummary,
       );
-      failedCount += Math.max(0, stSummary.failed - testCasesFailedSinceSwiftTestingSummary);
+      const unaccountedIssues = Math.max(
+        0,
+        stSummary.failed - issuesAccountedSinceSwiftTestingSummary,
+      );
+      completedCount += unreportedTests;
+      failedCount += Math.min(unreportedTests, unaccountedIssues);
       testCasesCompletedSinceSwiftTestingSummary = 0;
-      testCasesFailedSinceSwiftTestingSummary = 0;
+      issuesAccountedSinceSwiftTestingSummary = 0;
       emitTestProgress();
       return;
     }
diff --git a/src/utils/xcodebuild-run-state.ts b/src/utils/xcodebuild-run-state.ts
index b3ea9dee..4bef7507 100644
--- a/src/utils/xcodebuild-run-state.ts
+++ b/src/utils/xcodebuild-run-state.ts
@@ -83,6 +83,21 @@ function normalizeTestFailureKey(fragment: TestFailureFragment): string {
   return `${suite}|${test}|${normalizedMessage}`;
 }
 
+/**
+ * Failed test count for a run. Failure diagnostics are counted per test, not per
+ * diagnostic, because one test can record several failed assertions.
+ */
+export function countFailedTests(
+  state: Pick<XcodebuildRunState, 'failedTests' | 'testFailures'>,
+): number {
+  const failedTestKeys = new Set<string>();
+  for (const [index, failure] of state.testFailures.entries()) {
+    const test = normalizeTestIdentifier(failure.test);
+    failedTestKeys.add(test ? `test:${test}` : `failure:${index}`);
+  }
+  return Math.max(state.failedTests, failedTestKeys.size);
+}
+
 export interface XcodebuildRunStateHandle {
   push(fragment: XcodebuildRunStateFragment): void;
   finalize(succeeded: boolean, durationMs?: number): XcodebuildRunState;
@@ -95,7 +110,7 @@ function createTestSummaryFragment(
   kind: 'build-result' | 'build-run-result' | 'test-result',
   durationMs?: number,
 ): BuildSummaryFragment {
-  const failedTests = Math.max(state.failedTests, state.testFailures.length);
+  const failedTests = countFailedTests(state);
   const passedTests = Math.max(0, state.completedTests - failedTests - state.skippedTests);
   const totalTests = passedTests + failedTests + state.skippedTests;