diff --git a/.github/.codecov.yml b/.github/.codecov.yml
new file mode 100644
index 00000000000000..1faf5a6bab4644
--- /dev/null
+++ b/.github/.codecov.yml
@@ -0,0 +1,65 @@
+comment:
+  layout: "header, files, footer" # remove "new" from "header" and "footer"
+  hide_project_coverage: true # set to false
+  require_changes: false  # if true: only post the comment if coverage changes
+
+codecov:
+  #due to ci-optimization, reports for modules that have not changed may be quite old
+  max_report_age: off
+
+flag_management:
+  default_rules: # the rules that will be followed for any flag added, generally
+    carryforward: true
+    statuses:
+      - type: project
+        target: auto
+        threshold: 0%  #Not enforcing project coverage yet.
+      - type: patch
+        target: 90%
+  individual_flags: # exceptions to the default rules above, stated flag by flag
+    - name: frontend
+      paths:
+        - "datahub-frontend/**"
+        - "datahub-web-react/**"
+    - name: backend
+      paths:
+        - "metadata-models/**"
+        - "datahub-upgrade/**"
+        - "entity-registry/**"
+        - "li-utils/**"
+        - "metadata-auth/**"
+        - "metadata-dao-impl/**"
+        - "metadata-events/**"
+        - "metadata-jobs/**"
+        - "metadata-service/**"
+        - "metadata-utils/**"
+        - "metadata-operation-context/**"
+        - "datahub-graphql-core/**"
+    - name: metadata-io
+      paths:
+        - "metadata-io/**"
+    - name: ingestion
+      paths:
+        - "metadata-ingestion/**"
+    - name: ingestion-airflow
+      paths:
+        - "metadata-ingestion-modules/airflow-plugin/**"
+    - name: ingestion-dagster
+      paths:
+        - "metadata-ingestion-modules/dagster-plugin/**"
+    - name: ingestion-gx-plugin
+      paths:
+        - "metadata-ingestion-modules/gx-plugin/**"
+    - name: ingestion-prefect
+      paths:
+        - "metadata-ingestion-modules/prefect-plugin/**"
+coverage:
+  status:
+    project:
+      default:
+        target: 0% # no threshold enforcement yet
+        only_pulls: true
+    patch:
+      default:
+        target: 90% # for new code added in the patch
+        only_pulls: true
diff --git a/.github/workflows/airflow-plugin.yml b/.github/workflows/airflow-plugin.yml
index 89e0c9e2513d8b..c1eba45609fd52 100644
--- a/.github/workflows/airflow-plugin.yml
+++ b/.github/workflows/airflow-plugin.yml
@@ -77,15 +77,15 @@ jobs:
             **/build/test-results/test/**
             **/junit.*.xml
             !**/binary/**
-      - name: Upload coverage to Codecov
+      - name: Upload coverage to Codecov with ingestion flag
         if: always()
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          directory: ./build/coverage-reports/metadata-ingestion-modules/airflow-plugin/
           fail_ci_if_error: false
-          flags: airflow-${{ matrix.python-version }}-${{ matrix.extra_pip_extras }}
-          name: pytest-airflow
+          flags: ingestion-airflow
+          name: pytest-airflow-${{ matrix.python-version }}-${{ matrix.extra_pip_requirements }}
           verbose: true
       - name: Upload test results to Codecov
         if: ${{ !cancelled() }}
diff --git a/.github/workflows/build-and-test.yml b/.github/workflows/build-and-test.yml
index 058ac4a5c9b1e5..923abac5ef34af 100644
--- a/.github/workflows/build-and-test.yml
+++ b/.github/workflows/build-and-test.yml
@@ -113,6 +113,10 @@ jobs:
         if: ${{  matrix.command == 'except_metadata_ingestion' && needs.setup.outputs.backend_change == 'true' }}
         run: |
           ./gradlew -PjavaClassVersionDefault=8 :metadata-integration:java:spark-lineage:compileJava
+      - name: Gather coverage files
+        run: |
+          echo "BACKEND_FILES=`find ./build/coverage-reports/ -type f | grep -E '(metadata-models|entity-registry|datahuyb-graphql-core|metadata-io|metadata-jobs|metadata-utils|metadata-service|medata-dao-impl|metadata-operation|li-utils|metadata-integration|metadata-events|metadata-auth|ingestion-scheduler|notifications|datahub-upgrade)' | xargs | sed 's/ /,/g'`" >> $GITHUB_ENV
+          echo "FRONTEND_FILES=`find ./build/coverage-reports/ -type f | grep -E '(datahub-frontend|datahub-web-react).*\.(xml|json)$' | xargs | sed 's/ /,/g'`" >> $GITHUB_ENV
       - uses: actions/upload-artifact@v4
         if: always()
         with:
@@ -124,14 +128,28 @@ jobs:
             !**/binary/**
       - name: Ensure codegen is updated
         uses: ./.github/actions/ensure-codegen-updated
-      - name: Upload coverage to Codecov
-        if: always()
+      - name: Upload backend coverage to Codecov
+        if: ${{  matrix.command == 'except_metadata_ingestion' && needs.setup.outputs.backend_change == 'true' }}
+        uses: codecov/codecov-action@v5
+        with:
+          token: ${{ secrets.CODECOV_TOKEN }}
+          files: ${{ env.BACKEND_FILES }}
+          disable_search: true
+          #handle_no_reports_found: true
+          fail_ci_if_error: false
+          flags: backend
+          name: ${{ matrix.command }}
+          verbose: true
+      - name: Upload frontend coverage to Codecov
+        if: ${{  matrix.command == 'frontend' && needs.setup.outputs.frontend_change == 'true' }}
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          files: ${{ env.FRONTEND_FILES }}
+          disable_search: true
+          #handle_no_reports_found: true
           fail_ci_if_error: false
-          flags: ${{ matrix.timezone }}
+          flags: frontend
           name: ${{ matrix.command }}
           verbose: true
       - name: Upload test results to Codecov
diff --git a/.github/workflows/dagster-plugin.yml b/.github/workflows/dagster-plugin.yml
index c29e72367c53c5..fa15a280c9d39f 100644
--- a/.github/workflows/dagster-plugin.yml
+++ b/.github/workflows/dagster-plugin.yml
@@ -64,14 +64,14 @@ jobs:
             **/build/reports/tests/test/**
             **/build/test-results/test/**
             **/junit.*.xml
-      - name: Upload coverage to Codecov
+      - name: Upload coverage to Codecov with ingestion flag
         if: always()
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          directory: ./build/coverage-reports/metadata-ingestion-modules/dagster-plugin/
           fail_ci_if_error: false
-          flags: dagster-${{ matrix.python-version }}-${{ matrix.extraPythonRequirement }}
+          flags: ingestion-dagster-plugin
           name: pytest-dagster
           verbose: true
       - name: Upload test results to Codecov
diff --git a/.github/workflows/gx-plugin.yml b/.github/workflows/gx-plugin.yml
index 825f8beda2f561..eb0ca9a7dbbb97 100644
--- a/.github/workflows/gx-plugin.yml
+++ b/.github/workflows/gx-plugin.yml
@@ -68,14 +68,14 @@ jobs:
             **/build/reports/tests/test/**
             **/build/test-results/test/**
             **/junit.*.xml
-      - name: Upload coverage to Codecov
+      - name: Upload coverage to Codecov with ingestion flag
         if: always()
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          directory: ./build/coverage-reports/metadata-ingestion-modules/gx-plugin/
           fail_ci_if_error: false
-          flags: gx-${{ matrix.python-version }}-${{ matrix.extraPythonRequirement }}
+          flags: ingestion-gx-plugin
           name: pytest-gx
           verbose: true
       - name: Upload test results to Codecov
diff --git a/.github/workflows/metadata-ingestion.yml b/.github/workflows/metadata-ingestion.yml
index aa404c4c35c505..93bf10f5caeeeb 100644
--- a/.github/workflows/metadata-ingestion.yml
+++ b/.github/workflows/metadata-ingestion.yml
@@ -88,15 +88,15 @@ jobs:
             **/build/test-results/test/**
             **/junit.*.xml
             !**/binary/**
-      - name: Upload coverage to Codecov
-        if: ${{ always() }}
+      - name: Upload coverage to Codecov with ingestion flag
+        if: ${{ always() && matrix.python-version == '3.10' }}
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          directory: ./build/coverage-reports/metadata-ingestion/
           fail_ci_if_error: false
-          flags: ingestion-${{ matrix.python-version }}-${{ matrix.command }}
-          name: pytest-ingestion
+          flags: ingestion
+          name: pytest-${{ matrix.python-version }}-${{ matrix.command }}
           verbose: true
       - name: Upload test results to Codecov
         if: ${{ !cancelled() }}
diff --git a/.github/workflows/metadata-io.yml b/.github/workflows/metadata-io.yml
index bcadc641ee2f7c..6efcf58c700b1f 100644
--- a/.github/workflows/metadata-io.yml
+++ b/.github/workflows/metadata-io.yml
@@ -86,8 +86,9 @@ jobs:
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          directory: ./build/coverage-reports/metadata-io/
           fail_ci_if_error: false
+          flags: metadata-io
           name: metadata-io-test
           verbose: true
       - name: Upload test results to Codecov
diff --git a/.github/workflows/prefect-plugin.yml b/.github/workflows/prefect-plugin.yml
index 0bce4d5ef19f31..68736f9fd10156 100644
--- a/.github/workflows/prefect-plugin.yml
+++ b/.github/workflows/prefect-plugin.yml
@@ -60,15 +60,15 @@ jobs:
             **/build/test-results/test/**
             **/junit.*.xml
             !**/binary/**
-      - name: Upload coverage to Codecov
+      - name: Upload coverage to Codecov with ingestion flag
         if: always()
         uses: codecov/codecov-action@v5
         with:
           token: ${{ secrets.CODECOV_TOKEN }}
-          directory: ./build/coverage-reports/
+          directory: ./build/coverage-reports/metadata-ingestion-modules/prefect-plugin/
           fail_ci_if_error: false
-          flags: prefect-${{ matrix.python-version }}
-          name: pytest-prefect
+          flags: ingestion-prefect-plugin
+          name: pytest-prefect-${{ matrix.python-version }}
           verbose: true
       - name: Upload test results to Codecov
         if: ${{ !cancelled() }}