diff --git a/generators/app/index.js b/generators/app/index.js
index 4959533..cabe5e0 100644
--- a/generators/app/index.js
+++ b/generators/app/index.js
@@ -192,6 +192,15 @@ module.exports = generators.Base.extend({
 				when: function ( answers ) {
 					return answers.automatedTests;
 				}
+			},
+			{
+				type: 'confirm',
+				name: 'codeCoverage',
+				message: 'Do you need code coverage?',
+				'default': false,
+				when: function ( answers ) {
+					return answers.automatedTests;
+				}
 			}
 		], function ( answers ) {
 
@@ -215,6 +224,7 @@ module.exports = generators.Base.extend({
 				automatedTests: answers.automatedTests,
 				integrationTests: answers.integrationTests,
 				testingInterface: answers.testingInterface,
+				codeCoverage: answers.codeCoverage,
 				githubRepo: answers.githubRepo,
 				keywords: keywords,
 				version: pkg.version
@@ -257,11 +267,15 @@ module.exports = generators.Base.extend({
 					cp('test/automated', 'test/automated');
 					cp('karma.conf.js', 'karma.conf.js');
 				}
+				if ( answers.codeCoverage ) {
+					cp('istanbul.yml', '.istanbul.yml');
+				}
 			} else {
 				rm('.travis.yml');
 				rm('test/index.js');
 				rm('test/automated');
 				rm('karma.conf.js');
+				rm('.istanbul.yml');
 			}
 
 			if ( answers.manualTests || answers.integrationTests ) {
diff --git a/generators/app/templates/_package.json b/generators/app/templates/_package.json
index 67f97bb..9653636 100644
--- a/generators/app/templates/_package.json
+++ b/generators/app/templates/_package.json
@@ -17,7 +17,7 @@
     "test:integration": "gulp test:prepare && wdio"<% } %><% if ( manualTests ) { %>,
     "test:manual:local": "gulp test:local:manual --watch"<% } %><% if ( (automatedTests && browserModule) || manualTests || integrationTests ) { %>,
     "test": "npm run lint<% if ( automatedTests && browserModule ) { %> && npm run test:automated<% } %><% if ( integrationTests ) { %> && npm run test:integration<% } %>"<% } else { %>
-    "test": "<% if ( automatedTests ) { %>eslint {index,test/**/*}.js && mocha test/**/*.js<% if ( testingInterface !== 'bdd' ) { %> --ui <%= testingInterface %><% } %><% } else { %>eslint index.js<% } %><% if ( browserModule && styles ) { %> && stylelint index.css<% } %>"<% } %>
+    "test": "<% if ( automatedTests ) { %>eslint {index,test/**/*}.js && <% if ( codeCoverage ) { %>istanbul cover _mocha<% } else { %>mocha<% } %> test/**/*.js<% if ( testingInterface !== 'bdd' ) { %><% if ( codeCoverage ) { %> --<% } %> --ui <%= testingInterface %><% } %><% } else { %>eslint index.js<% } %><% if ( browserModule && styles ) { %> && stylelint index.css<% } %>"<% } %>
   }<% if ( jqueryModule ) { %>,
   "dependencies": {
     "jquery": "^1.12.4"
@@ -34,7 +34,10 @@
     "karma-html2js-preprocessor": "^1.0.0",
     "karma-mocha": "^1.0.1",
     "karma-mocha-reporter": "^2.0.3"<% } %><% if ( automatedTests || integrationTests ) { %>,
-    "mocha": "^2.5.3"<% } %><% if ( manualTests || integrationTests ) { %>,
+    "mocha": "^2.5.3"<% } %><% if ( automatedTests && codeCoverage ) { %>,
+    "istanbul": "^0.4.3"<% } %><% if ( automatedTests && codeCoverage && browserModule ) { %>,
+    "browserify-istanbul": "^2.0.0",
+    "karma-coverage": "^1.0.0"<% } %><% if ( manualTests || integrationTests ) { %>,
     "browserify": "^13.0.1",
     "del": "^2.2.0",
     "event-stream": "^3.3.2",
diff --git a/generators/app/templates/gitignore b/generators/app/templates/gitignore
index 9c8db15..6700504 100644
--- a/generators/app/templates/gitignore
+++ b/generators/app/templates/gitignore
@@ -1,4 +1,5 @@
 .DS_Store
 node_modules/
 npm-debug.log<% if ( (automatedTests && browserModule) || manualTests || integrationTests ) { %>
-test-dist/<% } %>
+test-dist/<% } %><% if ( automatedTests && codeCoverage ) { %>
+coverage<% } %>
diff --git a/generators/app/templates/istanbul.yml b/generators/app/templates/istanbul.yml
new file mode 100644
index 0000000..7c302c8
--- /dev/null
+++ b/generators/app/templates/istanbul.yml
@@ -0,0 +1,6 @@
+instrumentation:
+  default-excludes: true
+reporting:
+  print: summary
+  reports:
+    - html
diff --git a/generators/app/templates/karma.conf.js b/generators/app/templates/karma.conf.js
index 098d77b..f989112 100644
--- a/generators/app/templates/karma.conf.js
+++ b/generators/app/templates/karma.conf.js
@@ -13,7 +13,7 @@ module.exports = function ( config ) {
 			'test/automated/**/*.html': ['html2js'],
 			'test/automated/**/*.js': ['browserify']
 		},
-		reporters: ['mocha'],
+		reporters: ['mocha'<% if ( automatedTests && codeCoverage ) { %>, 'coverage'<% } %>],
 		port: 9876,
 		colors: true,
 		logLevel: config.LOG_INFO,
@@ -25,7 +25,21 @@ module.exports = function ( config ) {
 			mocha: {
 				ui: '<%= testingInterface %>'
 			}
+		},<% if ( automatedTests && codeCoverage ) { %>
+		browserify: {
+			debug: true,
+			transform: [['browserify-istanbul', { defaultIgnore: true }]]
 		},
+		coverageReporter: {
+			reporters: [
+				{
+					type: 'html'
+				},
+				{
+					type: 'text-summary'
+				}
+			]
+		},<% } %>
 		customLaunchers: {
 			'BS-Chrome': {
 				base: 'BrowserStack',
diff --git a/test/index.js b/test/index.js
index 56a7231..a91147c 100644
--- a/test/index.js
+++ b/test/index.js
@@ -440,3 +440,33 @@ describe('CLI', function () {
 	});
 
 });
+
+describe('code coverage', function () {
+
+	before(function () {
+		return helpers.run(path.join(__dirname, '../generators/app'))
+			.withPrompts({
+				automatedTests: true,
+				codeCoverage: true
+			})
+			.toPromise();
+	});
+
+	it('creates files', function () {
+		assert.file([
+			'.istanbul.yml'
+		]);
+	});
+
+	it('package.json', function () {
+		assert.JSONFileContent('package.json', {
+			scripts: {
+				test: 'eslint {index,test/**/*}.js && istanbul cover _mocha test/**/*.js'
+			},
+			devDependencies: {
+				istanbul: '^0.4.3'
+			}
+		});
+	});
+
+});