diff --git a/.github/workflows/tests.yml b/.github/workflows/tests.yml
index 1975102cd3..33c89bee09 100644
--- a/.github/workflows/tests.yml
+++ b/.github/workflows/tests.yml
@@ -43,7 +43,7 @@ jobs:
         run: |
           python -m pip install --upgrade pip
           # cpu version of pytorch
-          pip install .[test]
+          pip install -e .[test]
       - name: Test with pytest
         run: |
           make test
diff --git a/pyproject.toml b/pyproject.toml
index a72149d682..ae9d4507a2 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -33,4 +33,7 @@ doctest_optionflags = [
     "NORMALIZE_WHITESPACE",
     "ELLIPSIS",
     "NUMBER",
-]
\ No newline at end of file
+]
+
+[tool.pytest.ini_options]
+addopts = "--cov=src/peft --cov-report=term-missing"
diff --git a/setup.py b/setup.py
index 8b4978bde2..585f67a782 100644
--- a/setup.py
+++ b/setup.py
@@ -18,7 +18,7 @@
 extras["quality"] = ["black ~= 22.0", "ruff>=0.0.241", "urllib3<=2.0.0"]
 extras["docs_specific"] = ["hf-doc-builder"]
 extras["dev"] = extras["quality"] + extras["docs_specific"]
-extras["test"] = extras["dev"] + ["pytest", "pytest-xdist", "parameterized", "datasets", "diffusers"]
+extras["test"] = extras["dev"] + ["pytest", "pytest-cov", "pytest-xdist", "parameterized", "datasets", "diffusers"]
 
 setup(
     name="peft",