diff --git a/pkgs/test_reflective_loader/CHANGELOG.md b/pkgs/test_reflective_loader/CHANGELOG.md
index 61ba81bde..a4270cf48 100644
--- a/pkgs/test_reflective_loader/CHANGELOG.md
+++ b/pkgs/test_reflective_loader/CHANGELOG.md
@@ -1,3 +1,10 @@
+## 0.4.0
+
+- Test classes and suites with `name`s are now registered with `package:test`s
+  `group()` function to produce a hierarchy of groups/tests rather than a flat
+  set of tests with concatenated names. This may improve the display of tests
+  in IDEs test explorers.
+
 ## 0.3.0
 
 - Require Dart `^3.5.0`.
diff --git a/pkgs/test_reflective_loader/lib/test_reflective_loader.dart b/pkgs/test_reflective_loader/lib/test_reflective_loader.dart
index 9c3a103ce..65b3e1041 100644
--- a/pkgs/test_reflective_loader/lib/test_reflective_loader.dart
+++ b/pkgs/test_reflective_loader/lib/test_reflective_loader.dart
@@ -25,9 +25,12 @@ const Object skippedTest = SkippedTest();
 /// A marker annotation used to annotate "solo" groups and tests.
 const Object soloTest = _SoloTest();
 
-final List<_Group> _currentGroups = <_Group>[];
-int _currentSuiteLevel = 0;
-String _currentSuiteName = '';
+/// The current group stack of nested [defineReflectiveSuite] calls.
+List<_Group> _currentGroupStack = [];
+
+/// The root groups or tests created by [defineReflectiveSuite] or
+/// [defineReflectiveTests] calls.
+List<_GroupEntry> _rootGroupEntries = [];
 
 /// Is `true` the application is running in the checked mode.
 final bool _isCheckedMode = () {
@@ -43,16 +46,9 @@ final bool _isCheckedMode = () {
 /// add normal and "solo" tests, and also calls [defineReflectiveSuite] to
 /// create embedded suites.  If the current suite is the top-level one, perform
 /// check for "solo" groups and tests, and run all or only "solo" items.
-void defineReflectiveSuite(void Function() define, {String name = ''}) {
-  var groupName = _currentSuiteName;
-  _currentSuiteLevel++;
-  try {
-    _currentSuiteName = _combineNames(_currentSuiteName, name);
-    define();
-  } finally {
-    _currentSuiteName = groupName;
-    _currentSuiteLevel--;
-  }
+void defineReflectiveSuite(void Function() define, {String? name}) {
+  _addGroup(_Group(name), define);
+
   _addTestsIfTopLevelSuite();
 }
 
@@ -83,108 +79,90 @@ void defineReflectiveTests(Type type) {
         'in order to be run by runReflectiveTests.');
   }
 
-  _Group group;
-  {
-    var isSolo = _hasAnnotationInstance(classMirror, soloTest);
-    var className = MirrorSystem.getName(classMirror.simpleName);
-    group = _Group(isSolo, _combineNames(_currentSuiteName, className),
-        classMirror.testLocation);
-    _currentGroups.add(group);
-  }
+  var isSolo = _hasAnnotationInstance(classMirror, soloTest);
+  var className = MirrorSystem.getName(classMirror.simpleName);
 
-  classMirror.instanceMembers
-      .forEach((Symbol symbol, MethodMirror memberMirror) {
-    // we need only methods
-    if (!memberMirror.isRegularMethod) {
-      return;
-    }
-    // prepare information about the method
-    var memberName = MirrorSystem.getName(symbol);
-    var isSolo = memberName.startsWith('solo_') ||
-        _hasAnnotationInstance(memberMirror, soloTest);
-    // test_
-    if (memberName.startsWith('test_')) {
-      if (_hasSkippedTestAnnotation(memberMirror)) {
-        group.addSkippedTest(memberName, memberMirror.testLocation);
-      } else {
-        group.addTest(isSolo, memberName, memberMirror, () {
-          if (_hasFailingTestAnnotation(memberMirror) ||
-              _isCheckedMode && _hasAssertFailingTestAnnotation(memberMirror)) {
-            return _runFailingTest(classMirror, symbol);
-          } else {
-            return _runTest(classMirror, symbol);
-          }
-        });
+  _addGroup(_Group(className, solo: isSolo, location: classMirror.testLocation),
+      () {
+    classMirror.instanceMembers
+        .forEach((Symbol symbol, MethodMirror memberMirror) {
+      // we need only methods
+      if (!memberMirror.isRegularMethod) {
+        return;
       }
-      return;
-    }
-    // solo_test_
-    if (memberName.startsWith('solo_test_')) {
-      group.addTest(true, memberName, memberMirror, () {
-        return _runTest(classMirror, symbol);
-      });
-    }
-    // fail_test_
-    if (memberName.startsWith('fail_')) {
-      group.addTest(isSolo, memberName, memberMirror, () {
-        return _runFailingTest(classMirror, symbol);
-      });
-    }
-    // solo_fail_test_
-    if (memberName.startsWith('solo_fail_')) {
-      group.addTest(true, memberName, memberMirror, () {
-        return _runFailingTest(classMirror, symbol);
-      });
-    }
-    // skip_test_
-    if (memberName.startsWith('skip_test_')) {
-      group.addSkippedTest(memberName, memberMirror.testLocation);
-    }
+      // prepare information about the method
+      var memberName = MirrorSystem.getName(symbol);
+      var isTest = memberName.startsWith(RegExp('(solo_|fail_|skip_)*test_'));
+      if (isTest) {
+        var isSolo = memberName.startsWith('solo_') ||
+            _hasAnnotationInstance(memberMirror, soloTest);
+        var isSkipped = memberName.startsWith('skip_') ||
+            _hasSkippedTestAnnotation(memberMirror);
+        var expectFail = memberName.startsWith('fail_') ||
+            memberName.startsWith('solo_fail_') ||
+            _hasFailingTestAnnotation(memberMirror) ||
+            _isCheckedMode && _hasAssertFailingTestAnnotation(memberMirror);
+        var timeout =
+            _getAnnotationInstance(memberMirror, TestTimeout) as TestTimeout?;
+
+        _addTest(
+          _Test(
+              memberName,
+              timeout: timeout?._timeout,
+              location: memberMirror.testLocation,
+              solo: isSolo,
+              skip: isSkipped,
+              () => expectFail
+                  ? _runFailingTest(classMirror, symbol)
+                  : _runTest(classMirror, symbol)),
+        );
+      }
+    });
   });
 
-  // Support for the case of missing enclosing [defineReflectiveSuite].
   _addTestsIfTopLevelSuite();
 }
 
-/// If the current suite is the top-level one, add tests to the `test` package.
+/// If we're back at the top level ([_currentGroupStack] is empty), registers
+/// all known groups and tests by calling [test_package.group] and
+/// [test_package.test] appropriately.
 void _addTestsIfTopLevelSuite() {
-  if (_currentSuiteLevel == 0) {
-    void runTests({required bool allGroups, required bool allTests}) {
-      for (var group in _currentGroups) {
-        if (allGroups || group.isSolo) {
-          for (var test in group.tests) {
-            if (allTests || test.isSolo) {
-              test_package.test(test.name, test.function,
-                  timeout: test.timeout,
-                  skip: test.isSkipped,
-                  location: test.location);
-            }
+  if (_currentGroupStack.isNotEmpty) return;
+
+  void addGroupsAndTests(List<_GroupEntry> entries) {
+    for (var entry in entries) {
+      switch (entry) {
+        case _Group group:
+          // Only add groups if they have names, otherwise just add their
+          // children directly.
+          if (group.name != null) {
+            test_package.group(
+              group.name,
+              location: group.location,
+              // ignore: deprecated_member_use, invalid_use_of_do_not_submit_member
+              solo: group.solo,
+              () => addGroupsAndTests(group.children),
+            );
+          } else {
+            addGroupsAndTests(group.children);
           }
-        }
+          break;
+        case _Test test:
+          test_package.test(
+              test.name,
+              timeout: test.timeout,
+              location: test.location,
+              // ignore: deprecated_member_use, invalid_use_of_do_not_submit_member
+              solo: test.solo,
+              skip: test.skip,
+              test.function);
+          break;
       }
     }
-
-    if (_currentGroups.any((g) => g.hasSoloTest)) {
-      runTests(allGroups: true, allTests: false);
-    } else if (_currentGroups.any((g) => g.isSolo)) {
-      runTests(allGroups: false, allTests: true);
-    } else {
-      runTests(allGroups: true, allTests: true);
-    }
-    _currentGroups.clear();
   }
-}
 
-/// Return the combination of the [base] and [addition] names.
-/// If any other two is `null`, then the other one is returned.
-String _combineNames(String base, String addition) {
-  if (base.isEmpty) {
-    return addition;
-  } else if (addition.isEmpty) {
-    return base;
-  } else {
-    return '$base | $addition';
-  }
+  addGroupsAndTests(_rootGroupEntries);
+  _rootGroupEntries.clear();
 }
 
 Object? _getAnnotationInstance(DeclarationMirror declaration, Type type) {
@@ -226,6 +204,28 @@ Future<Object?> _invokeSymbolIfExists(
   return Future.value(invocationResult);
 }
 
+/// Adds a group to the current stack and executes [define] for child group
+/// or tests definitions.
+void _addGroup(_Group group, void Function() define) {
+  var parentCollection =
+      _currentGroupStack.lastOrNull?.children ?? _rootGroupEntries;
+  parentCollection.add(group);
+  _currentGroupStack.add(group);
+  try {
+    define();
+  } finally {
+    _currentGroupStack.removeLast();
+  }
+}
+
+/// Adds a test to the current group (or as a root test if there is no current
+/// group).
+void _addTest(_Test test) {
+  var parentCollection =
+      _currentGroupStack.lastOrNull?.children ?? _rootGroupEntries;
+  parentCollection.add(test);
+}
+
 /// Run a test that is expected to fail, and confirm that it fails.
 ///
 /// This properly handles the following cases:
@@ -267,8 +267,6 @@ Future<void> _runTest(ClassMirror classMirror, Symbol symbol) async {
   }
 }
 
-typedef _TestFunction = dynamic Function();
-
 /// A marker annotation used to annotate test methods which are expected to
 /// fail.
 class FailingTest {
@@ -303,32 +301,6 @@ class _AssertFailingTest {
   const _AssertFailingTest();
 }
 
-/// Information about a type based test group.
-class _Group {
-  final bool isSolo;
-  final String name;
-  final test_package.TestLocation? location;
-  final List<_Test> tests = <_Test>[];
-
-  _Group(this.isSolo, this.name, this.location);
-
-  bool get hasSoloTest => tests.any((test) => test.isSolo);
-
-  void addSkippedTest(String name, test_package.TestLocation? location) {
-    var fullName = _combineNames(this.name, name);
-    tests.add(_Test.skipped(isSolo, fullName, location));
-  }
-
-  void addTest(bool isSolo, String name, MethodMirror memberMirror,
-      _TestFunction function) {
-    var fullName = _combineNames(this.name, name);
-    var timeout =
-        _getAnnotationInstance(memberMirror, TestTimeout) as TestTimeout?;
-    tests.add(_Test(isSolo, fullName, function, timeout?._timeout,
-        memberMirror.testLocation));
-  }
-}
-
 /// A marker annotation used to instruct dart2js to keep reflection information
 /// for the annotated classes.
 class _ReflectiveTest {
@@ -340,23 +312,45 @@ class _SoloTest {
   const _SoloTest();
 }
 
-/// Information about a test.
-class _Test {
-  final bool isSolo;
-  final String name;
-  final _TestFunction function;
-  final test_package.Timeout? timeout;
+abstract class _GroupEntry {
+  final String? name;
   final test_package.TestLocation? location;
+  final bool solo;
+
+  _GroupEntry(
+    this.name, {
+    this.location,
+    this.solo = false,
+  });
+}
+
+/// Information about a test group which could be from a call to
+/// [defineReflectiveSuite] with a `name`, or a test class itself.
+class _Group extends _GroupEntry {
+  final List<_GroupEntry> children = [];
 
-  final bool isSkipped;
+  _Group(
+    super.name, {
+    super.location,
+    super.solo,
+  });
+}
 
-  _Test(this.isSolo, this.name, this.function, this.timeout, this.location)
-      : isSkipped = false;
+/// Information about a test created for a method of a class with
+/// [defineReflectiveTests].
+class _Test extends _GroupEntry {
+  final FutureOr<Object?>? Function() function;
+  final bool skip;
+  final test_package.Timeout? timeout;
 
-  _Test.skipped(this.isSolo, this.name, this.location)
-      : isSkipped = true,
-        function = (() {}),
-        timeout = null;
+  _Test(
+    super.name,
+    this.function, {
+    required super.location,
+    required super.solo,
+    required this.skip,
+    required this.timeout,
+  });
 }
 
 extension on DeclarationMirror {
diff --git a/pkgs/test_reflective_loader/pubspec.yaml b/pkgs/test_reflective_loader/pubspec.yaml
index 262a3498f..efdec89d1 100644
--- a/pkgs/test_reflective_loader/pubspec.yaml
+++ b/pkgs/test_reflective_loader/pubspec.yaml
@@ -1,5 +1,5 @@
 name: test_reflective_loader
-version: 0.3.0
+version: 0.4.0
 description: Support for discovering tests and test suites using reflection.
 repository: https://github.com/dart-lang/tools/tree/main/pkgs/test_reflective_loader
 issue_tracker: https://github.com/dart-lang/tools/labels/package%3Atest_reflective_loader
diff --git a/pkgs/test_reflective_loader/test/hierarchy_test.dart b/pkgs/test_reflective_loader/test/hierarchy_test.dart
new file mode 100644
index 000000000..c052dd474
--- /dev/null
+++ b/pkgs/test_reflective_loader/test/hierarchy_test.dart
@@ -0,0 +1,34 @@
+// Copyright (c) 2025, the Dart project authors.  Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+import 'dart:io';
+import 'dart:isolate';
+
+import 'package:path/path.dart' as path;
+import 'package:test/test.dart';
+
+void main() {
+  test('builds the correct hierarchy of group names / test names', () async {
+    var testPackagePath = (await Isolate.resolvePackageUri(
+            Uri.parse('package:test_reflective_loader/')))!
+        .toFilePath();
+    var testFilePath = path.normalize(
+        path.join(testPackagePath, '..', 'test', 'hierarchy_test.data.dart'));
+    var result =
+        await Process.run(Platform.resolvedExecutable, ['test', testFilePath]);
+
+    var error = result.stderr.toString().trim();
+    var output = result.stdout.toString().trim();
+
+    expect(error, isEmpty);
+    expect(
+        output,
+        allOf([
+          contains('+0: SimpleTest test_foo'),
+          contains('+1: level_1.1 level_2.1 SimpleTest test_foo'),
+          contains('+2: level_1.1 level_2.2 SimpleTest test_foo'),
+          contains('+3: All tests passed!'),
+        ]));
+  });
+}
diff --git a/pkgs/test_reflective_loader/test/hierarchy_test.data.dart b/pkgs/test_reflective_loader/test/hierarchy_test.data.dart
new file mode 100644
index 000000000..ae3d96791
--- /dev/null
+++ b/pkgs/test_reflective_loader/test/hierarchy_test.data.dart
@@ -0,0 +1,32 @@
+// Copyright (c) 2025, the Dart project authors.  Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+import 'package:test/test.dart';
+import 'package:test_reflective_loader/test_reflective_loader.dart';
+
+/// This file is not intended to be run directly, but is run by
+/// `hierarchy_test.dart`.
+void main() {
+  defineReflectiveTests(SimpleTest); // Ungrouped tests
+  defineReflectiveSuite(() {
+    defineReflectiveSuite(() {
+      defineReflectiveSuite(
+        () {
+          defineReflectiveTests(SimpleTest);
+        }, /* unnamed */
+      );
+    }, name: 'level_2.1');
+    defineReflectiveSuite(() {
+      defineReflectiveTests(SimpleTest);
+    }, name: 'level_2.2');
+  }, name: 'level_1.1');
+}
+
+@reflectiveTest
+class SimpleTest {
+  // ignore: non_constant_identifier_names
+  void test_foo() {
+    expect(1, 1);
+  }
+}
diff --git a/pkgs/test_reflective_loader/test/location_test.dart b/pkgs/test_reflective_loader/test/location_test.dart
index 14984bb83..b66b13eda 100644
--- a/pkgs/test_reflective_loader/test/location_test.dart
+++ b/pkgs/test_reflective_loader/test/location_test.dart
@@ -38,7 +38,7 @@ void main() {
 
         // Split just the method name from the combined test so we can search
         // the source code to ensure the locations match up.
-        name = name.split('|').last.trim();
+        name = name.split(' ').last.trim();
 
         // Expect locations for all remaining fields.
         var url = test['url'] as String;