diff --git a/.codecov.yml b/.codecov.yml
new file mode 100644
index 00000000..d8895a85
--- /dev/null
+++ b/.codecov.yml
@@ -0,0 +1,24 @@
+# Copyright(C) 2025-2026 Advanced Micro Devices, Inc. All rights reserved.
+# SPDX-License-Identifier: MIT
+
+codecov:
+  require_ci_to_pass: true
+
+coverage:
+  status:
+    project:
+      default:
+        target: 60%
+        threshold: 2%
+    patch:
+      default:
+        target: 70%
+
+ignore:
+  - "tests/"
+  - "docs/"
+  - "scripts/"
+  - "workshop/"
+  - "src/gaia/eval/"
+  - "src/gaia/apps/webui/"
+  - "setup.py"
diff --git a/.github/workflows/test_unit.yml b/.github/workflows/test_unit.yml
index dead53e1..cafd7305 100644
--- a/.github/workflows/test_unit.yml
+++ b/.github/workflows/test_unit.yml
@@ -85,7 +85,17 @@ jobs:
           echo "=== Running Unit Tests ==="
           echo "These are fast tests for core SDK components"
           echo ""
-          pytest tests/unit/ -v --tb=short --cov=src/gaia --cov-report=term-missing
+          pytest tests/unit/ -v --tb=short \
+            --cov=src/gaia --cov-report=term-missing --cov-report=xml:coverage.xml
+
+      - name: Upload coverage to Codecov
+        if: always()
+        uses: codecov/codecov-action@v5
+        with:
+          files: coverage.xml
+          flags: unit
+          token: ${{ secrets.CODECOV_TOKEN }}
+          fail_ci_if_error: false
 
       - name: Run DatabaseMixin integration tests
         env:
diff --git a/setup.py b/setup.py
index 46301977..3ea1512a 100644
--- a/setup.py
+++ b/setup.py
@@ -181,6 +181,7 @@
         ],
         "dev": [
             "pytest",
+            "pytest-cov",
             "pytest-benchmark",
             "pytest-mock",
             "pytest-asyncio",