diff --git a/.github/workflows/code-coverage.yml b/.github/workflows/code-coverage.yml
new file mode 100644
index 000000000..26859a9ae
--- /dev/null
+++ b/.github/workflows/code-coverage.yml
@@ -0,0 +1,50 @@
+name: Code Coverage Report
+
+on:
+  push:
+    branches:
+      - main
+  pull_request:
+    branches: [ main ]
+
+jobs:
+  coverage-report:
+    name: Check Code Coverage
+    runs-on: ubuntu-20.04
+    steps:
+    -
+      name: Set up Go 1.x
+      uses: actions/setup-go@v2
+      with:
+        go-version: 1.16.6
+    -
+      name: Set up Python 3.8
+      uses: actions/setup-python@v2
+      with:
+        python-version: 3.8
+    -
+      name: Check out code into the Go module directory
+      uses: actions/checkout@v2
+    -
+      name: Cache go modules
+      id: cache-mod
+      uses: actions/cache@v2
+      with:
+        path: ~/go/pkg/mod
+        key: ${{ runner.os }}-go-${{ hashFiles('**/go.sum') }}
+        restore-keys: |
+          ${{ runner.os }}-go-
+    -
+      name: Download dependencies
+      run: go mod download
+      if: steps.cache-mod.outputs.cache-hit != 'true'
+    -
+      name: Run Go Tests
+      run: |
+        python -m pip install --upgrade pip yq
+        make test
+    - 
+      name: Build Codecov report
+      uses: codecov/codecov-action@v1
+      with:
+        files: cover.out
diff --git a/README.md b/README.md
index fb1222d84..6a636db7e 100644
--- a/README.md
+++ b/README.md
@@ -1,5 +1,7 @@
 # Dev Workspace Operator
 
+[![codecov](https://codecov.io/gh/devfile/devworkspace-operator/branch/main/graph/badge.svg)](https://codecov.io/gh//devfile/devworkspace-operator)
+
 Dev Workspace operator repository that contains the controller for the DevWorkspace Custom Resource. The Kubernetes API of the DevWorkspace is defined in the https://github.com/devfile/api repository.
 
 ## DevWorkspace CR
@@ -180,3 +182,5 @@ This will delete all custom resource definitions created for the controller, as
 #### GitHub actions
 
 - [Next Dockerimage](https://github.com/devfile/devworkspace-operator/blob/main/.github/workflows/dockerimage-next.yml) action builds main branch and pushes it to [quay.io/devfile/devworkspace-controller:next](https://quay.io/repository/devfile/devworkspace-controller?tag=latest&tab=tags)
+
+- [Code Coverage Report](./.github/workflows/code-coverage.yml) action creates a code coverage report using [codecov.io](https://about.codecov.io/). 
diff --git a/codecov.yml b/codecov.yml
new file mode 100644
index 000000000..77707aa1d
--- /dev/null
+++ b/codecov.yml
@@ -0,0 +1,2 @@
+github_checks:
+    annotations: false