diff --git a/.gitignore b/.gitignore
index 4992982a5..8585a9d0f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -10,4 +10,7 @@
 coverage
 .nvmrc
 ~*
-/.cache
\ No newline at end of file
+/.cache
+*.marko.js
+/test/generated/
+.nyc_output
\ No newline at end of file
diff --git a/.travis.yml b/.travis.yml
index f77a3681a..71214311d 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -5,5 +5,5 @@ node_js:
 - "6"
 - "7"
 language: node_js
-script: "npm run test-coverage"
+script: "npm run test-generate-coverage"
 after_success: "npm run coveralls"
\ No newline at end of file
diff --git a/package.json b/package.json
index c3d9cc99f..ded64fc5d 100644
--- a/package.json
+++ b/package.json
@@ -20,9 +20,10 @@
     "url": "https://github.com/marko-js/marko.git"
   },
   "scripts": {
-    "test": "npm run mocha -s && npm run test-widgets -s && npm run jshint -s",
+    "test": "npm run jshint -s && npm run mocha -s && npm run test-widgets -s",
     "mocha": "mocha --ui bdd --reporter spec ./test/",
-    "test-coverage": "istanbul cover _mocha --include-all-sources -- --ui bdd --reporter spec ./test && npm run test-widgets && npm run jshint",
+    "test-coverage": "npm run test-generate-coverage && nyc report --reporter=html && open ./coverage/index.html",
+    "test-generate-coverage": "nyc -asc npm run test",
     "test-fast": "mocha --ui bdd --reporter spec ./test/render-test",
     "test-async": "mocha --ui bdd --reporter spec ./test/async-render-test",
     "test-taglib-loader": "mocha --ui bdd --reporter spec ./test/taglib-loader-test",
@@ -34,7 +35,7 @@
     "test-widgets-browser-dev": "browser-refresh test/browser-tests-runner/cli.js test/widgets-browser-tests.js --server",
     "test-widgets-page": "browser-refresh test/browser-tests-runner/cli.js test/widgets-browser-tests.js --server --page",
     "jshint": "jshint compiler/ runtime/ taglibs/ widgets/",
-    "coveralls": "cat ./coverage/lcov.info | coveralls"
+    "coveralls": "nyc report --reporter=text-lcov | coveralls"
   },
   "author": "Patrick Steele-Idem <pnidem@gmail.com>",
   "maintainers": [
@@ -86,15 +87,19 @@
     "express": "^4.13.4",
     "fs-extra": "^0.30.0",
     "ignoring-watcher": "^1.0.2",
-    "istanbul": "^0.4.3",
+    "istanbul-lib-instrument": "^1.3.0",
     "jquery": "^2.1.3",
     "jsdom": "^9.6.0",
     "jshint": "^2.5.0",
     "lasso": "^2.4.1",
     "lasso-marko": "^2.1.0",
+    "md5-hex": "^1.3.0",
     "mkdirp": "^0.5.1",
     "mocha": "^2.3.3",
-    "mocha-phantomjs": "^4.1.0",
+    "mocha-phantomjs-core": "^1.3.1",
+    "mocha-phantomjs-istanbul": "0.0.2",
+    "nyc": "^9.0.0",
+    "open": "0.0.5",
     "phantomjs-prebuilt": "^2.1.13",
     "request": "^2.72.0",
     "require-self-ref": "^2.0.1",
@@ -113,6 +118,13 @@
   "browser": {
     "./node-require.js": "./node-require-browser.js"
   },
+  "nyc": {
+    "exclude": [
+      "**/benchmark/**",
+      "**/coverage/**",
+      "**/test/**"
+    ]
+  },
   "homepage": "http://markojs.com/",
   "version": "4.0.0-beta.2",
   "logo": {
diff --git a/test/autotest.js b/test/autotest.js
index 772f1a813..ee55e216e 100644
--- a/test/autotest.js
+++ b/test/autotest.js
@@ -69,6 +69,9 @@ function autoTest(name, dir, run, options, done) {
 
 exports.scanDir = function(autoTestDir, run, options) {
     describe('autotest', function() {
+        if(options && options.timeout) {
+            this.timeout(options.timeout);
+        }
         fs.readdirSync(autoTestDir)
             .forEach(function(name) {
                 if (name.charAt(0) === '.') {
diff --git a/test/browser-tests-runner/index.js b/test/browser-tests-runner/index.js
index 27d3a63ae..42b62d5e7 100644
--- a/test/browser-tests-runner/index.js
+++ b/test/browser-tests-runner/index.js
@@ -11,8 +11,10 @@ var defaultPageTemplate = require('./page-template.marko');
 var spawn = require('child-process-promise').spawn;
 var fs = require('fs');
 var mkdirp = require('mkdirp');
-var mochaPhantomJSCommand = path.join(__dirname, '../../node_modules/.bin/mocha-phantomjs');
+var md5Hex = require('md5-hex');
+var mochaPhantomJSCommand = require.resolve('mocha-phantomjs-core');
 var phantomjsBinPath = require('phantomjs-prebuilt').path;
+var shouldCover = !!process.env.NYC_CONFIG;
 
 function generate(options) {
     return new Promise((resolve, reject) => {
@@ -41,7 +43,7 @@ function generate(options) {
             }
         ];
 
-        var myLasso = lasso.create({
+        var lassoConfig = {
             outputDir: path.join(generatedDir, 'static'),
             urlPrefix: startServer ? '/static' : './static',
             bundlingEnabled: false,
@@ -56,7 +58,15 @@ function generate(options) {
                 },
                 require('./lasso-autotest-plugin')
             ]
-        });
+        };
+
+        if(shouldCover) {
+            lassoConfig.plugins.push(
+                require('./lasso-istanbul-plugin')
+            );
+        }
+
+        var myLasso = lasso.create(lassoConfig);
 
         var templateData = {
             lasso: myLasso,
@@ -119,12 +129,23 @@ function runTests(options) {
     return generate(options)
         .then((generated) => {
             console.log(`Running ${generated.url} using mocha-phantomjs...`);
-            return spawn(mochaPhantomJSCommand, ['-p', phantomjsBinPath, generated.url], {
+            var mochaPhantomJSOptions = { useColors:true };
+
+            if(shouldCover) {
+                mochaPhantomJSOptions.hooks = 'mocha-phantomjs-istanbul';
+                mochaPhantomJSOptions.coverageFile = getCoverageFile(options.testsFile);
+            }
+
+            return spawn(phantomjsBinPath, [mochaPhantomJSCommand, generated.url, 'spec', JSON.stringify(mochaPhantomJSOptions)], {
                 stdio: 'inherit'
             });
         });
 }
 
+function getCoverageFile(testsFile) {
+    return './.nyc_output/'+md5Hex(testsFile)+'.json';
+}
+
 exports.generate = generate;
 exports.runTests = runTests;
 
diff --git a/test/browser-tests-runner/lasso-istanbul-plugin.js b/test/browser-tests-runner/lasso-istanbul-plugin.js
new file mode 100644
index 000000000..9e1a80e25
--- /dev/null
+++ b/test/browser-tests-runner/lasso-istanbul-plugin.js
@@ -0,0 +1,21 @@
+var istanbul = require('istanbul-lib-instrument');
+
+module.exports = function(lasso, pluginConfig) {
+    var instrumenter = istanbul.createInstrumenter();
+
+    lasso.addTransform({
+        stream: false,
+        contentType: 'js',
+        transform: function(code, context) {
+            var file = context.dependency.file
+
+            if(!file || file.includes('node_modules/')
+                     || file.includes('test/')
+                     || file.includes('coverage/')
+                     || file.includes('benchmark/')
+            ) return code;
+
+            return instrumenter.instrumentSync(code, context.dependency.file);
+        }
+    });
+}
\ No newline at end of file
diff --git a/test/markoc-tests.js b/test/markoc-tests.js
index 082b53662..ef89025d5 100644
--- a/test/markoc-tests.js
+++ b/test/markoc-tests.js
@@ -32,5 +32,5 @@ describe('markoc' , function() {
 
         testModule.test(helpers);
         done();
-    });
+    }, { timeout:20000 });
 });