diff --git a/.github/workflows/main.yml b/.github/workflows/main.yml
index af264f8a..5b8abfa3 100644
--- a/.github/workflows/main.yml
+++ b/.github/workflows/main.yml
@@ -78,4 +78,9 @@ jobs:
       #   run: poetry run mypy
 
       - name: Run pytest
-        run: poetry run pytest -v
+        run: poetry run pytest --cov=openeo_processes_dask --cov-report=xml
+
+      - name: Upload coverage to Codecov
+        uses: codecov/codecov-action@v3
+        with:
+          files: ./coverage.xml
diff --git a/README.md b/README.md
index 1927f182..6a30d73d 100644
--- a/README.md
+++ b/README.md
@@ -1,5 +1,7 @@
 # OpenEO Processes Dask
 
+[![codecov](https://codecov.io/github/Open-EO/openeo-processes-dask/branch/main/graph/badge.svg?token=RA82MUN9RZ)](https://codecov.io/github/Open-EO/openeo-processes-dask)
+
 ## Development environment
 openeo-processes-dask requires poetry >1.2, see their [docs](https://python-poetry.org/docs/#installation) for installation instructions.
 
@@ -25,5 +27,6 @@ poetry run python -m pytest
 
 Note that you can also use the virtual environment that's generated by poetry as the kernel for the ipynb notebooks.
 
-Pre-commit hooks
+**Pre-commit hooks**
+
 This repo makes use of [pre-commit](https://pre-commit.com/) hooks to enforce linting & a few sanity checks. In a fresh development setup, install the hooks using `poetry run pre-commit install`. These will then automatically be checked against your changes before making the commit.
diff --git a/pyproject.toml b/pyproject.toml
index 75cc840c..7419a32e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -22,7 +22,6 @@ packages = [
     { include = "openeo_processes_dask" }
 ]
 
-
 [tool.poetry.dependencies]
 python = ">=3.9,<3.10"
 geopandas = "^0.12.1"
@@ -46,6 +45,12 @@ mapclassify = "^2.4.3"
 [tool.poetry.group.dev.dependencies]
 bokeh = "<3"
 pre-commit = "^2.20.0"
+pytest-cov = "^4.0.0"
+
+[tool.pytest.ini_options]
+testpaths = [
+    "tests",
+]
 
 [build-system]
 requires = ["poetry-core>=1.0.0"]