Playwright UI mode is an interactive feature that allows users to run, inspect, and debug tests in a visually intuitive environment. It provides a real-time visual testing framework with features like live test execution monitoring, step-by-step debugging, Trace Viewer, and selector inspection, making the test automation process more efficient. With Playwright UI mode, developers can fully access automated test functionality without any hindrances, leveraging features such as Pick Locator, Actions and Metadata, Timeline View, Watch Feature, Source, Call, and Log to optimize test automation workflows, leading to higher test quality and reduced debugging time.