diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index 08c4e6d335..f997dd9e02 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -59,7 +59,14 @@ jobs:
           command: |
             echo "Running Build Tests"
             make clean
-            make test
+            make test-coverage
+
+      - name: Upload coverage reports to Codecov
+        uses: codecov/codecov-action@v4.0.1
+        with:
+          file: coverage.out
+          token: ${{ secrets.CODECOV_TOKEN }}
+          slug: zeta-chain/node
 
       - name: Build zetacored and zetaclientd
         env:
diff --git a/.github/workflows/publish-release.yml b/.github/workflows/publish-release.yml
index 04988adeb0..277bc9e654 100644
--- a/.github/workflows/publish-release.yml
+++ b/.github/workflows/publish-release.yml
@@ -216,7 +216,14 @@ jobs:
           command: |
             echo "Running Build Tests"
             make clean
-            make test
+            make test-coverage
+
+      - name: Upload coverage reports to Codecov
+        uses: codecov/codecov-action@v4.0.1
+        with:
+          file: coverage.out
+          token: ${{ secrets.CODECOV_TOKEN }}
+          slug: zeta-chain/node
 
       - name: Build zetacored and zetaclientd
         if: ${{ github.event.inputs.skip_checks != 'true' }}
diff --git a/changelog.md b/changelog.md
index 72e28c4550..f2fe3e0815 100644
--- a/changelog.md
+++ b/changelog.md
@@ -51,6 +51,7 @@
 * Added docker-compose and make commands for launching full nodes. `make mainnet-zetarpc-node`  `make mainnet-bitcoind-node`
 * Made adjustments to the docker-compose for launching mainnet full nodes to include examples of using the docker images build from the docker image build pipeline.
 * [1736](https://github.com/zeta-chain/node/pull/1736) - chore: add Ethermint endpoints to OpenAPI
+* [1781](https://github.com/zeta-chain/node/pull/1781) - add codecov coverage report in CI
 
 ### Features
 
diff --git a/codecov.yml b/codecov.yml
new file mode 100644
index 0000000000..647094cf84
--- /dev/null
+++ b/codecov.yml
@@ -0,0 +1,74 @@
+coverage:
+  round: down
+  precision: 2
+  status:
+    project:
+      default:
+        threshold: 1% # allow this much decrease on project
+      zetacore:
+        if_ci_failed: error
+        target: 60%
+        flags:
+          - zetacore
+      zetaclient:
+        if_ci_failed: error
+        target: 60%
+        flags:
+          - zetaclient
+      common:
+        if_ci_failed: error
+        target: 60%
+        flags:
+          - common
+
+comment:
+  layout: "reach, diff, files"
+  behavior: default
+  require_changes: true
+
+flags:
+  zetacore:
+    carryforward: true
+    paths:
+      - "x/"
+  zetaclient:
+    carryforward: true
+    paths:
+      - "zetaclient/"
+  common:
+    carryforward: true
+    paths:
+      - "common/"
+
+ignore:
+  - "x/**/client/"
+  - "x/**/keeper/keeper.go"
+  - "x/**/keeper/msg_server.go"
+  - "x/**/keeper/grpc_query_params.go"
+  - "x/**/types/codec.go"
+  - "x/**/types/errors.go"
+  - "x/**/types/keys.go"
+  - "x/**/types/key_*.go"
+  - "x/**/types/types.go"
+  - "x/**/types/expected_keepers.go"
+  - "x/**/module.go"
+  - "x/**/module_simulation.go"
+  - "x/**/simulation/"
+  - "*.proto"
+  - "*.md"
+  - "*.yml"
+  - "*.yaml"
+  - "*.pb.go"
+  - "*.pb.gw.go"
+  - "*.json"
+  - ".github/"
+  - "app/"
+  - "cmd/"
+  - "contrib/"
+  - "docs/"
+  - "rpc/"
+  - "proto/"
+  - "scripts/"
+  - "server/"
+  - "testutil/"
+  - "typescript/"
\ No newline at end of file