diff --git a/README.md b/README.md
index e0887eef6..6e77bfc7b 100644
--- a/README.md
+++ b/README.md
@@ -115,6 +115,14 @@ We recommend that you configure your favourite Java IDE to match those conventio
 File > Import > General > Preferences our [config/fineractdev-eclipse-preferences.epf](config/fineractdev-eclipse-preferences.epf).
 You could also use Checkstyle directly in your IDE (but you don't neccesarily have to, it may just be more convenient for you).  For Eclipse, use https://checkstyle.org/eclipse-cs/ and load our checkstyle.xml into it.
 
+Code Coverage Reports
+============
+
+The project uses Jacoco to measure unit tests code coverage, to generate a report run the following command: 
+
+    `./gradlew clean build jacocoTestReport`
+
+Generated reports can be found in build/code-coverage directory.
 
 Version
 ============
diff --git a/fineract-provider/build.gradle b/fineract-provider/build.gradle
index 1a4759338..6fea4dbb8 100644
--- a/fineract-provider/build.gradle
+++ b/fineract-provider/build.gradle
@@ -26,6 +26,7 @@ project.ext.jerseyVersion = '1.17'
 buildscript {
   ext {
     openJPAVersion = '3.1.0'
+    jacocoVersion = '0.8.5'
   }
   repositories {
   	 jcenter()
@@ -66,6 +67,7 @@ apply plugin: 'openjpa'
 apply plugin: "com.github.spotbugs"
 apply plugin: 'checkstyle'
 apply plugin: 'com.github.andygoossens.gradle-modernizer-plugin'
+apply plugin: 'jacoco'
 // apply plugin: 'pmd'
 
 dependencyManagement {
@@ -155,6 +157,19 @@ openjpa {
     }
 }
 
+jacoco {
+    toolVersion = jacocoVersion
+    reportsDir = file("$buildDir/reports/jacoco")
+}
+
+jacocoTestReport{
+    reports{
+        html.enabled=true
+        xml.enabled=true
+        html.destination file("${buildDir}/code-coverage")
+    }
+}
+
 rat {
   xmlOutput = false
   htmlOutput = false