diff --git a/.coveragerc b/.coveragerc
new file mode 100644
index 000000000..c5670410c
--- /dev/null
+++ b/.coveragerc
@@ -0,0 +1,14 @@
+[run]
+source = axolotl
+omit =
+    */tests/*
+    setup.py
+
+[report]
+exclude_lines =
+    pragma: no cover
+    def __repr__
+    raise NotImplementedError
+    if __name__ == .__main__.:
+    pass
+    raise ImportError
diff --git a/.github/workflows/tests.yml b/.github/workflows/tests.yml
index 9eb85a5b1..863687128 100644
--- a/.github/workflows/tests.yml
+++ b/.github/workflows/tests.yml
@@ -102,9 +102,16 @@ jobs:
 
       - name: Run tests
         run: |
-          pytest -v -n8 --dist loadfile --ignore=tests/e2e/ --ignore=tests/patched/ --ignore=tests/cli/ tests/
-          pytest -v tests/patched/
-          pytest -v tests/cli/
+          pytest -v -n8 --dist loadfile --ignore=tests/e2e/ --ignore=tests/patched/ --ignore=tests/cli/ tests/ --cov=axolotl --cov-report=xml
+          pytest -v tests/patched/ --cov=axolotl --cov-append --cov-report=xml
+          pytest -v tests/cli/ --cov=axolotl --cov-append --cov-report=xml
+
+      - name: Upload coverage to Codecov
+        uses: codecov/codecov-action@v5
+        with:
+          files: ./coverage.xml
+          flags: unittests,pytorch-${{ matrix.pytorch_version }}
+          fail_ci_if_error: false
 
       - name: cleanup pip cache
         run: |
diff --git a/README.md b/README.md
index 0f2907df4..56e45e3fe 100644
--- a/README.md
+++ b/README.md
@@ -9,6 +9,7 @@
 <p align="center">
     <img src="https://img.shields.io/github/license/axolotl-ai-cloud/axolotl.svg?color=blue" alt="GitHub License">
     <img src="https://github.com/axolotl-ai-cloud/axolotl/actions/workflows/tests.yml/badge.svg" alt="tests">
+    <a href="https://codecov.io/gh/axolotl-ai-cloud/axolotl"><img src="https://codecov.io/gh/axolotl-ai-cloud/axolotl/branch/main/graph/badge.svg" alt="codecov"></a>
     <a href="https://github.com/axolotl-ai-cloud/axolotl/releases"><img src="https://img.shields.io/github/release/axolotl-ai-cloud/axolotl.svg" alt="Releases"></a>
     <br/>
     <a href="https://github.com/axolotl-ai-cloud/axolotl/graphs/contributors"><img src="https://img.shields.io/github/contributors-anon/axolotl-ai-cloud/axolotl?color=yellow&style=flat-square" alt="contributors" style="height: 20px;"></a>
diff --git a/cicd/cicd.sh b/cicd/cicd.sh
index 1d9ea7fbe..3ae4896ac 100755
--- a/cicd/cicd.sh
+++ b/cicd/cicd.sh
@@ -3,10 +3,59 @@ set -e
 
 python -c "import torch; assert '$PYTORCH_VERSION' in torch.__version__"
 
-pytest -v --durations=10 -n8 --ignore=tests/e2e/ --ignore=tests/patched/ --ignore=tests/cli /workspace/axolotl/tests/
-pytest -v --durations=10 /workspace/axolotl/tests/e2e/patched/lora_kernels  # running these with the other patches causes a failure
-pytest -v --durations=10 --ignore=tests/e2e/patched/lora_kernels /workspace/axolotl/tests/e2e/patched
-pytest -v --durations=10 -n1 /workspace/axolotl/tests/e2e/solo/
-pytest -v --durations=10 /workspace/axolotl/tests/e2e/integrations/
-pytest -v --durations=10 /workspace/axolotl/tests/cli
-pytest -v --durations=10 --ignore=tests/e2e/solo/ --ignore=tests/e2e/patched/ --ignore=tests/e2e/multigpu/ --ignore=tests/e2e/integrations/ --ignore=tests/cli /workspace/axolotl/tests/e2e/
+# Run unit tests with initial coverage report
+pytest -v --durations=10 -n8 \
+  --ignore=tests/e2e/ \
+  --ignore=tests/patched/ \
+  --ignore=tests/cli \
+  /workspace/axolotl/tests/ \
+  --cov=axolotl \
+  --cov-report=xml:coverage.xml
+
+# Run lora kernels tests with coverage append
+pytest -v --durations=10 \
+  /workspace/axolotl/tests/e2e/patched/lora_kernels \
+  --cov=axolotl \
+  --cov-append
+
+# Run patched tests excluding lora kernels with coverage append
+pytest -v --durations=10 \
+  --ignore=tests/e2e/patched/lora_kernels \
+  /workspace/axolotl/tests/e2e/patched \
+  --cov=axolotl \
+  --cov-append
+
+# Run solo tests with coverage append
+pytest -v --durations=10 -n1 \
+  /workspace/axolotl/tests/e2e/solo/ \
+  --cov=axolotl \
+  --cov-append
+
+# Run integration tests with coverage append
+pytest -v --durations=10 \
+  /workspace/axolotl/tests/e2e/integrations/ \
+  --cov=axolotl \
+  --cov-append
+
+pytest -v --durations=10 /workspace/axolotl/tests/cli \
+  --cov=axolotl \
+  --cov-append
+
+# Run remaining e2e tests with coverage append and final report
+pytest -v --durations=10 \
+  --ignore=tests/e2e/solo/ \
+  --ignore=tests/e2e/patched/ \
+  --ignore=tests/e2e/multigpu/ \
+  --ignore=tests/e2e/integrations/ \
+  --ignore=tests/cli \
+  /workspace/axolotl/tests/e2e/ \
+  --cov=axolotl \
+  --cov-append \
+  --cov-report=xml:coverage.xml
+
+# Upload coverage to Codecov
+if [ -f e2e-coverage.xml ]; then
+  codecov -f e2e-coverage.xml -F e2e,pytorch-${PYTORCH_VERSION}
+else
+  echo "Coverage file not found. Coverage report may have failed."
+fi
diff --git a/cicd/multigpu.sh b/cicd/multigpu.sh
index 008a74bff..898cf1155 100755
--- a/cicd/multigpu.sh
+++ b/cicd/multigpu.sh
@@ -4,3 +4,22 @@ set -e
 # only run one test at a time so as not to OOM the GPU
 pytest -v  --durations=10 -n2 /workspace/axolotl/tests/e2e/multigpu/ --ignore=/workspace/axolotl/tests/e2e/multigpu/solo/
 pytest -v  --durations=10 -n1 /workspace/axolotl/tests/e2e/multigpu/solo/
+
+# Only run two tests at a time to avoid OOM on GPU (with coverage collection)
+pytest -v -n2 \
+  --ignore=/workspace/axolotl/tests/e2e/multigpu/solo/
+  /workspace/axolotl/tests/e2e/multigpu/ \
+  --cov=axolotl \
+  --cov-report=xml:multigpu-coverage.xml
+
+pytest -v  --durations=10 -n1 /workspace/axolotl/tests/e2e/multigpu/solo/ \
+  --cov=axolotl \
+  --cov-append \
+  --cov-report=xml:multigpu-coverage.xml
+
+# Upload coverage to Codecov
+if [ -f multigpu-coverage.xml ]; then
+  codecov -f multigpu-coverage.xml -F multigpu,docker-tests,pytorch-${PYTORCH_VERSION}
+else
+  echo "Coverage file not found. Coverage report may have failed."
+fi
diff --git a/codecov.yml b/codecov.yml
new file mode 100644
index 000000000..6d47379e8
--- /dev/null
+++ b/codecov.yml
@@ -0,0 +1,51 @@
+codecov:
+  require_ci_to_pass: yes
+
+coverage:
+  precision: 2
+  round: down
+  range: "70...100"
+  status:
+    project:
+      default:
+        # basic
+        target: auto
+        threshold: 0%
+        base: auto
+        # advanced
+        branches: null
+        if_no_uploads: error
+        if_not_found: success
+        if_ci_failed: error
+        only_pulls: false
+        flags: null
+        paths: null
+    patch:
+      default:
+        # basic
+        target: auto
+        threshold: 0%
+        base: auto
+        # advanced
+        branches: null
+        if_no_uploads: error
+        if_not_found: success
+        if_ci_failed: error
+        only_pulls: false
+        flags: null
+        paths: null
+
+parsers:
+  gcov:
+    branch_detection:
+      conditional: yes
+      loop: yes
+      method: no
+      macro: no
+
+comment:
+  layout: "reach,diff,flags,files,footer"
+  behavior: default
+  require_changes: no
+  require_base: no
+  require_head: yes
diff --git a/requirements-dev.txt b/requirements-dev.txt
index 1dce5df5f..5c42d96d4 100644
--- a/requirements-dev.txt
+++ b/requirements-dev.txt
@@ -1,6 +1,6 @@
-pre-commit
 black
 mypy
+pre-commit
 types-requests
 quartodoc
 jupyter
diff --git a/requirements-tests.txt b/requirements-tests.txt
index a13f73923..43e3f88f4 100644
--- a/requirements-tests.txt
+++ b/requirements-tests.txt
@@ -1,5 +1,7 @@
+codecov
 pytest
-pytest-xdist
+pytest-cov
 pytest-retry
 pytest-sugar
+pytest-xdist
 tbparse