diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 65ef5eba..d648a495 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -42,8 +42,15 @@ jobs:
       - name: Audit production dependencies
         run: npm audit --omit=dev --audit-level=high
 
-      - name: Run tests
-        run: npm test
+      - name: Run tests with coverage
+        run: npm run test:coverage
+
+      - name: Upload coverage to Codecov
+        uses: codecov/codecov-action@v5
+        with:
+          files: coverage/lcov.info
+          fail_ci_if_error: false
+          token: ${{ secrets.CODECOV_TOKEN }}
 
   validate-commits:
     runs-on: ubuntu-latest
diff --git a/README.md b/README.md
index 656a2b81..24e7a527 100644
--- a/README.md
+++ b/README.md
@@ -1,5 +1,8 @@
 # Cascade
 
+[![CI](https://github.com/mongrel-intelligence/cascade/actions/workflows/ci.yml/badge.svg)](https://github.com/mongrel-intelligence/cascade/actions/workflows/ci.yml)
+[![codecov](https://codecov.io/gh/mongrel-intelligence/cascade/branch/main/graph/badge.svg)](https://codecov.io/gh/mongrel-intelligence/cascade)
+
 > **Cascade orchestrates AI agents (Claude Code, Codex, opencode, LLMist) across your workflows in GitHub, Trello, and Jira.**
 
 Cascade is an open-source platform that automates the full software development lifecycle. Connect your PM tool and GitHub repository, and Cascade drives work items from plan to merge:
diff --git a/codecov.yml b/codecov.yml
new file mode 100644
index 00000000..e1406c26
--- /dev/null
+++ b/codecov.yml
@@ -0,0 +1,21 @@
+coverage:
+  status:
+    project:
+      default:
+        target: 80%
+        threshold: 2%
+    patch:
+      default:
+        target: 80%
+
+comment:
+  layout: "reach,diff,flags,files"
+  behavior: default
+  require_changes: true
+
+ignore:
+  - "src/**/*.test.ts"
+  - "src/types/**"
+  - "web/**"
+  - "tools/**"
+  - "tests/**"