diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index fd5a059c5e..8ec6f5eef3 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -84,6 +84,8 @@ jobs:
           DPCFLAG="0"
           if [ $(echo ${{ matrix.PYTHON_VERSION }} | grep '${{ env.DPCTL_PY_VERSIONS }}') ]; then DPCFLAG=''; fi
           echo "DPCFLAG=${DPCFLAG}" >> "$GITHUB_OUTPUT"
+          # enable coverage report generation
+          echo "COVERAGE=true" >> "$GITHUB_ENV"
       - name: apt-get
         run: sudo apt-get update && sudo apt-get install -y clang-format
       - name: dpcpp installation
diff --git a/conda-recipe/run_test.sh b/conda-recipe/run_test.sh
index 172a6c3721..cc7466b061 100755
--- a/conda-recipe/run_test.sh
+++ b/conda-recipe/run_test.sh
@@ -31,6 +31,11 @@ if [[ count -eq 0 ]]; then
     exit 1
 fi
 
+COV_ARGS=(--no-cov)
+if [[ "$COVERAGE" == "true" ]]; then
+COV_ARGS=(--cov-config '$daal4py_dir/.coveragerc' --cov-report term)
+fi
+
 echo "Start testing ..."
 return_code=0
 
@@ -50,15 +55,15 @@ python -m unittest discover -v -s ${daal4py_dir}/tests -p test*.py
 return_code=$(($return_code + $?))
 
 echo "Pytest of daal4py running ..."
-pytest --verbose --pyargs ${daal4py_dir}/daal4py/sklearn
+pytest --verbose ${daal4py_dir}/daal4py/sklearn "${COV_ARGS[@]}"
 return_code=$(($return_code + $?))
 
 echo "Pytest of sklearnex running ..."
-pytest --verbose --pyargs sklearnex
+pytest --verbose --pyargs sklearnex "${COV_ARGS[@]}"
 return_code=$(($return_code + $?))
 
 echo "Pytest of onedal running ..."
-pytest --verbose --pyargs ${daal4py_dir}/onedal
+pytest --verbose --pyargs onedal 
 return_code=$(($return_code + $?))
 
 echo "Global patching test running ..."
diff --git a/requirements-test.txt b/requirements-test.txt
index d5af4e380b..563198897c 100644
--- a/requirements-test.txt
+++ b/requirements-test.txt
@@ -13,3 +13,4 @@ catboost==1.2.7 ; python_version < '3.11' # TODO: Remove 3.11 condition when cat
 shap==0.46.0
 array-api-compat==1.9
 array-api-strict==2.0.1
+pytest-cov==5.0.0