diff --git a/.changes/unreleased/INTERNAL-20241205-163130.yaml b/.changes/unreleased/INTERNAL-20241205-163130.yaml
new file mode 100644
index 000000000..9c235c9d8
--- /dev/null
+++ b/.changes/unreleased/INTERNAL-20241205-163130.yaml
@@ -0,0 +1,6 @@
+kind: INTERNAL
+body: Enable code coverage reporting
+time: 2024-12-05T16:31:30.723429-05:00
+custom:
+    Issue: "1901"
+    Repository: vscode-terraform
diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 7949701f4..cf37a13d2 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -31,10 +31,12 @@ jobs:
           cache: npm
       - name: npm install
         run: npm ci
-      - name: lint
-        run: npm run lint
+      - name: check types
+        run: npm run check-types
       - name: format
         run: npm run check-format
+      - name: lint
+        run: npm run lint
 
   test:
     strategy:
diff --git a/.gitignore b/.gitignore
index 828e1609e..536a3e549 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,6 +6,7 @@
 .test-extensions
 *.vsix
 bin
+coverage
 node_modules
 npm-debug.log
 dist
diff --git a/.vscode-test.mjs b/.vscode-test.mjs
index e47771205..c57d95c5a 100644
--- a/.vscode-test.mjs
+++ b/.vscode-test.mjs
@@ -18,6 +18,7 @@ const testSuiteFolderNames = fs
   .map((entry) => entry.name);
 
 const configs = testSuiteFolderNames.map((folderName) => ({
+  label: `Integration Tests - ${folderName}`,
   version: process.env['VSCODE_VERSION'] ?? 'stable',
   workspaceFolder: process.env['VSCODE_WORKSPACE_FOLDER'] ?? path.join(BASE_SRC_PATH, folderName, 'workspace'),
   launchArgs: ['--disable-extensions', '--disable-workspace-trust'],
@@ -30,6 +31,11 @@ const configs = testSuiteFolderNames.map((folderName) => ({
   },
 }));
 
-const config = defineConfig(configs);
+const config = defineConfig({
+  tests: configs,
+  coverage: {
+    exclude: ['src/test/**', '**/node_modules/**', '**/dist/**'],
+  },
+});
 
 export default config;
diff --git a/package.json b/package.json
index 46870c4b8..77b8e8bcd 100644
--- a/package.json
+++ b/package.json
@@ -929,7 +929,7 @@
   },
   "scripts": {
     "prepare": "npm run download:artifacts",
-    "compile": "npm run check-types && npm run lint && node esbuild.mjs",
+    "compile": "node esbuild.mjs",
     "compile:prod": "npm run check-types && npm run lint && node esbuild.mjs --production",
     "compile:tests": "tsc -p .",
     "watch": "npm-run-all -p watch:esbuild watch:tsc",
@@ -945,8 +945,8 @@
     "download:artifacts": "node ./build/downloader.mjs",
     "vscode:prepublish": "npm run compile:prod",
     "package": "vsce package",
-    "pretest": "npm run compile:tests && npm run compile && npm run lint",
-    "test": "vscode-test",
+    "pretest": "npm run compile:tests && npm run compile",
+    "test": "vscode-test --coverage",
     "test:ui": "npm run compile:tests && node .vscode-uitest.mjs",
     "lint": "eslint",
     "format": "prettier --write .",