diff --git a/chain/cosmos/chain_node.go b/chain/cosmos/chain_node.go
index 93e28f372..00e46ac39 100644
--- a/chain/cosmos/chain_node.go
+++ b/chain/cosmos/chain_node.go
@@ -537,7 +537,7 @@ func (tn *ChainNode) ExecTx(ctx context.Context, keyName string, command ...stri
 	tn.lock.Lock()
 	defer tn.lock.Unlock()
 
-	stdout, _, err := tn.Exec(ctx, tn.TxCommand(keyName, command...), nil)
+	stdout, _, err := tn.Exec(ctx, tn.TxCommand(keyName, command...), tn.Chain.Config().Env)
 	if err != nil {
 		return "", err
 	}
@@ -617,7 +617,7 @@ func (tn *ChainNode) BinCommand(command ...string) []string {
 // pass ("keys", "show", "key1") for command to execute the command against the node.
 // Will include additional flags for home directory and chain ID.
 func (tn *ChainNode) ExecBin(ctx context.Context, command ...string) ([]byte, []byte, error) {
-	return tn.Exec(ctx, tn.BinCommand(command...), nil)
+	return tn.Exec(ctx, tn.BinCommand(command...), tn.Chain.Config().Env)
 }
 
 // QueryCommand is a helper to retrieve the full query command. For example,
@@ -636,7 +636,7 @@ func (tn *ChainNode) QueryCommand(command ...string) []string {
 // pass ("gov", "params") for command to execute the query against the node.
 // Returns response in json format.
 func (tn *ChainNode) ExecQuery(ctx context.Context, command ...string) ([]byte, []byte, error) {
-	return tn.Exec(ctx, tn.QueryCommand(command...), nil)
+	return tn.Exec(ctx, tn.QueryCommand(command...), tn.Chain.Config().Env)
 }
 
 // CondenseMoniker fits a moniker into the cosmos character limit for monikers.
@@ -731,7 +731,7 @@ func (tn *ChainNode) RecoverKey(ctx context.Context, keyName, mnemonic string) e
 	tn.lock.Lock()
 	defer tn.lock.Unlock()
 
-	_, _, err := tn.Exec(ctx, command, nil)
+	_, _, err := tn.Exec(ctx, command, tn.Chain.Config().Env)
 	return err
 }
 
@@ -827,7 +827,7 @@ func (tn *ChainNode) CollectGentxs(ctx context.Context) error {
 	tn.lock.Lock()
 	defer tn.lock.Unlock()
 
-	_, _, err := tn.Exec(ctx, command, nil)
+	_, _, err := tn.Exec(ctx, command, tn.Chain.Config().Env)
 	return err
 }
 
@@ -1076,7 +1076,7 @@ func (tn *ChainNode) UnsafeResetAll(ctx context.Context) error {
 
 	command = append(command, "unsafe-reset-all", "--home", tn.HomeDir())
 
-	_, _, err := tn.Exec(ctx, command, nil)
+	_, _, err := tn.Exec(ctx, command, tn.Chain.Config().Env)
 	return err
 }
 
@@ -1326,7 +1326,7 @@ func (tn *ChainNode) KeyBech32(ctx context.Context, name string, bech string) (s
 		command = append(command, "--bech", bech)
 	}
 
-	stdout, stderr, err := tn.Exec(ctx, command, nil)
+	stdout, stderr, err := tn.Exec(ctx, command, tn.Chain.Config().Env)
 	if err != nil {
 		return "", fmt.Errorf("failed to show key %q (stderr=%q): %w", name, stderr, err)
 	}
diff --git a/chain/internal/tendermint/tendermint_node.go b/chain/internal/tendermint/tendermint_node.go
index 5c927f935..d334a7f8a 100644
--- a/chain/internal/tendermint/tendermint_node.go
+++ b/chain/internal/tendermint/tendermint_node.go
@@ -253,7 +253,7 @@ func (tn *TendermintNode) InitHomeFolder(ctx context.Context, mode string) error
 	command := []string{tn.Chain.Config().Bin, "init", mode,
 		"--home", tn.HomeDir(),
 	}
-	_, _, err := tn.Exec(ctx, command, nil)
+	_, _, err := tn.Exec(ctx, command, tn.Chain.Config().Env)
 	return err
 }
 
diff --git a/dockerutil/file.go b/dockerutil/file.go
index 0780030b7..78cdd5353 100644
--- a/dockerutil/file.go
+++ b/dockerutil/file.go
@@ -1,9 +1,19 @@
 package dockerutil
 
 import (
+	"archive/tar"
+	"bytes"
+	"context"
 	"fmt"
 	"io"
 	"os"
+	"path"
+	"path/filepath"
+	"strings"
+	"testing"
+
+	"github.com/docker/docker/client"
+	"github.com/stretchr/testify/require"
 )
 
 func CopyFile(src, dst string) (int64, error) {
@@ -30,3 +40,41 @@ func CopyFile(src, dst string) (int64, error) {
 	nBytes, err := io.Copy(destination, source)
 	return nBytes, err
 }
+
+func CopyCoverageFromContainer(ctx context.Context, t *testing.T, client *client.Client, containerId string, internalGoCoverDir string, extHostGoCoverDir string) {
+	r, _, err := client.CopyFromContainer(ctx, containerId, internalGoCoverDir)
+	require.NoError(t, err)
+	defer r.Close()
+
+	err = os.MkdirAll(extHostGoCoverDir, os.ModePerm)
+	require.NoError(t, err)
+
+	tr := tar.NewReader(r)
+	for {
+		hdr, err := tr.Next()
+		if err == io.EOF {
+			break // End of archive
+		}
+		require.NoError(t, err)
+
+		var fileBuff bytes.Buffer
+		_, err = io.Copy(&fileBuff, tr)
+		require.NoError(t, err)
+
+		name := hdr.Name
+		extractedFileName := path.Base(name)
+
+		//Only extract coverage files
+		if !strings.HasPrefix(extractedFileName, "cov") {
+			continue
+		}
+		isDirectory := extractedFileName == ""
+		if isDirectory {
+			continue
+		}
+
+		filePath := filepath.Join(extHostGoCoverDir, extractedFileName)
+		err = os.WriteFile(filePath, fileBuff.Bytes(), os.ModePerm)
+		require.NoError(t, err)
+	}
+}
diff --git a/examples/cosmos/code_coverage_test.go b/examples/cosmos/code_coverage_test.go
new file mode 100644
index 000000000..d870cec71
--- /dev/null
+++ b/examples/cosmos/code_coverage_test.go
@@ -0,0 +1,91 @@
+package cosmos_test
+
+import (
+	"context"
+	"os"
+	"testing"
+
+	"github.com/strangelove-ventures/interchaintest/v8"
+	"github.com/strangelove-ventures/interchaintest/v8/chain/cosmos"
+	"github.com/strangelove-ventures/interchaintest/v8/dockerutil"
+	"github.com/strangelove-ventures/interchaintest/v8/ibc"
+	"github.com/strangelove-ventures/interchaintest/v8/testreporter"
+	"github.com/stretchr/testify/require"
+	"go.uber.org/zap/zapcore"
+	"go.uber.org/zap/zaptest"
+)
+
+func TestCodeCoverage(t *testing.T) {
+	t.Parallel()
+
+	var (
+		ctx                = context.Background()
+		ExternalGoCoverDir = "/tmp/interchaintest-app-coverage"
+		Denom              = "umfx"
+		vals               = 1
+		fullNodes          = 0
+	)
+
+	cfgA := ibc.ChainConfig{
+		Type:    "cosmos",
+		Name:    "manifest",
+		ChainID: "manifest-2",
+		Images: []ibc.DockerImage{
+			{
+				Repository: "ghcr.io/liftedinit/manifest-ledger",
+				Version:    "v0.0.1-alpha.10",
+				UidGid:     "1025:1025",
+			},
+		},
+		Bin:            "manifestd",
+		Bech32Prefix:   "manifest",
+		Denom:          Denom,
+		GasPrices:      "0" + Denom,
+		GasAdjustment:  1.3,
+		TrustingPeriod: "508h",
+		NoHostMount:    false,
+	}
+
+	cfgA.WithCodeCoverage()
+
+	cf := interchaintest.NewBuiltinChainFactory(zaptest.NewLogger(t, zaptest.Level(zapcore.DebugLevel)), []*interchaintest.ChainSpec{
+		{
+			Name:          "manifest",
+			Version:       cfgA.Images[0].Version,
+			ChainName:     cfgA.ChainID,
+			NumValidators: &vals,
+			NumFullNodes:  &fullNodes,
+			ChainConfig:   cfgA,
+		},
+	})
+
+	chains, err := cf.Chains(t.Name())
+	require.NoError(t, err)
+	chainA := chains[0].(*cosmos.CosmosChain)
+
+	client, network := interchaintest.DockerSetup(t)
+
+	ic := interchaintest.NewInterchain().
+		AddChain(chainA)
+
+	rep := testreporter.NewNopReporter()
+	eRep := rep.RelayerExecReporter(t)
+
+	// Build interchain
+	require.NoError(t, ic.Build(ctx, eRep, interchaintest.InterchainBuildOptions{
+		TestName:         t.Name(),
+		Client:           client,
+		NetworkID:        network,
+		SkipPathCreation: false,
+	}))
+
+	t.Cleanup(func() {
+		dockerutil.CopyCoverageFromContainer(ctx, t, client, chainA.GetNode().ContainerID(), chainA.HomeDir(), ExternalGoCoverDir)
+
+		files, err := os.ReadDir(ExternalGoCoverDir)
+		require.NoError(t, err)
+		require.NotEmpty(t, files)
+
+		_ = ic.Close()
+	})
+}
diff --git a/ibc/types.go b/ibc/types.go
index 226a1c667..332263dfd 100644
--- a/ibc/types.go
+++ b/ibc/types.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"fmt"
 	"io"
+	"path"
 	"reflect"
 	"strconv"
 	"strings"
@@ -226,6 +227,14 @@ func (c ChainConfig) MergeChainSpecConfig(other ChainConfig) ChainConfig {
 	return c
 }
 
+// WithCodeCoverage enables Go Code Coverage from the chain node directory.
+func (c *ChainConfig) WithCodeCoverage(override ...string) {
+	c.Env = append(c.Env, fmt.Sprintf("GOCOVERDIR=%s", path.Join("/var/cosmos-chain", c.ChainID)))
+	if len(override) > 0 {
+		c.Env = append(c.Env, override[0])
+	}
+}
+
 // IsFullyConfigured reports whether all required fields have been set on c.
 // It is possible for some fields, such as GasAdjustment and NoHostMount,
 // to be their respective zero values and for IsFullyConfigured to still report true.