diff --git a/README.md b/README.md
index 5b54bcbf..107ba4f0 100644
--- a/README.md
+++ b/README.md
@@ -90,8 +90,7 @@ coverageExcludedFiles := ".*\\/two\\/GoodCoverage;.*\\/three\\/.*"
 
 Note: The `.scala` file extension needs to be omitted from the filename, if one is given.
 
-Note: These two options only work for Scala2. Right now Scala3 does not support
-a way to exclude packages or files from being instrumented.
+Note: These two options only work for Scala2 and Scala 3.4.2+.
 
 You can also mark sections of code with comments like:
 
@@ -104,6 +103,8 @@ You can also mark sections of code with comments like:
 Any code between two such comments will not be instrumented or included in the
 coverage report.
 
+Note: Comments exclusion works only for Scala2.
+
 ### Minimum coverage
 
 Based on minimum coverage, you can fail the build with the following keys:
diff --git a/src/main/scala/scoverage/ScoverageSbtPlugin.scala b/src/main/scala/scoverage/ScoverageSbtPlugin.scala
index a7a22add..feba91ba 100644
--- a/src/main/scala/scoverage/ScoverageSbtPlugin.scala
+++ b/src/main/scala/scoverage/ScoverageSbtPlugin.scala
@@ -75,18 +75,28 @@ object ScoverageSbtPlugin extends AutoPlugin {
   private def isScala2(scalaVersion: String) =
     CrossVersion
       .partialVersion(scalaVersion)
-      .collect { case (2, _) =>
-        true
+      .exists {
+        case (2, _) => true
+        case _      => false
       }
-      .getOrElse(false)
 
   private def isScala3SupportingScoverage(scalaVersion: String) =
     CrossVersion
       .partialVersion(scalaVersion)
-      .collect {
+      .exists {
         case (3, minor) if minor >= 2 => true
+        case _                        => false
+      }
+
+  private def isScala3SupportingFilePackageExclusion(scalaVersion: String) = {
+    def patch = scalaVersion.split('.').drop(2).headOption
+    CrossVersion
+      .partialVersion(scalaVersion)
+      .exists {
+        case (3, minor) if minor >= 4 && patch.exists(_ >= "2") => true
+        case _                                                  => false
       }
-      .getOrElse(false)
+  }
 
   private lazy val coverageSettings = Seq(
     libraryDependencies ++= {
@@ -114,6 +124,18 @@ object ScoverageSbtPlugin extends AutoPlugin {
 
       implicit val log = streams.value.log
 
+      val excludedPackages =
+        Option(coverageExcludedPackages.value.trim).filter(_.nonEmpty)
+      val excludedFiles = Option(coverageExcludedFiles.value.trim)
+        .filter(_.nonEmpty)
+        .map(v =>
+          // On windows, replace unix file separators with windows file
+          // separators. Note that we need to replace / with \\ because
+          // the plugin treats this string as a regular expression and
+          // backslashes must be escaped in regular expressions.
+          if (isWindows) v.replace("/", """\\""") else v
+        )
+
       val updateReport = update.value
       if (coverageEnabled.value && isScala2(scalaVersion.value)) {
         val scoverageDeps: Seq[File] =
@@ -156,19 +178,8 @@ object ScoverageSbtPlugin extends AutoPlugin {
           Some(
             s"-P:scoverage:sourceRoot:${coverageSourceRoot.value.getAbsolutePath}"
           ),
-          Option(coverageExcludedPackages.value.trim)
-            .filter(_.nonEmpty)
-            .map(v => s"-P:scoverage:excludedPackages:$v"),
-          Option(coverageExcludedFiles.value.trim)
-            .filter(_.nonEmpty)
-            .map(v =>
-              // On windows, replace unix file separators with windows file
-              // separators. Note that we need to replace / with \\ because
-              // the plugin treats this string as a regular expression and
-              // backslashes must be escaped in regular expressions.
-              if (isWindows) v.replace("/", """\\""") else v
-            )
-            .map(v => s"-P:scoverage:excludedFiles:$v"),
+          excludedPackages.map(v => s"-P:scoverage:excludedPackages:$v"),
+          excludedFiles.map(v => s"-P:scoverage:excludedFiles:$v"),
           Some("-P:scoverage:reportTestName"),
           // rangepos is broken in some releases of scala so option to turn it off
           if (coverageHighlighting.value) Some("-Yrangepos") else None
@@ -177,8 +188,26 @@ object ScoverageSbtPlugin extends AutoPlugin {
         coverageEnabled.value && isScala3SupportingScoverage(scalaVersion.value)
       ) {
         Seq(
-          s"-coverage-out:${coverageDataDir.value.getAbsolutePath()}/scoverage-data"
-        )
+          Some(
+            s"-coverage-out:${coverageDataDir.value.getAbsolutePath()}/scoverage-data"
+          ),
+          excludedPackages
+            .collect {
+              case v
+                  if isScala3SupportingFilePackageExclusion(
+                    scalaVersion.value
+                  ) =>
+                s"-coverage-exclude-classlikes:$v"
+            },
+          excludedFiles
+            .collect {
+              case v
+                  if isScala3SupportingFilePackageExclusion(
+                    scalaVersion.value
+                  ) =>
+                s"-coverage-exclude-files:$v"
+            }
+        ).flatten
       } else if (coverageEnabled.value && !isScala2(scalaVersion.value)) {
         log.warn(
           "coverage in Scala 3 needs at least 3.2.x. Please update your Scala version and try again."
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-files/build.sbt b/src/sbt-test/scoverage/scala3-coverage-excluded-files/build.sbt
index 939f7489..fef0a139 100644
--- a/src/sbt-test/scoverage/scala3-coverage-excluded-files/build.sbt
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-files/build.sbt
@@ -1,6 +1,6 @@
 version := "0.1"
 
-scalaVersion := "3.2.0-RC1"
+scalaVersion := "3.4.2"
 
 libraryDependencies += "org.scalameta" %% "munit" % "0.7.29" % Test
 
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-files/test b/src/sbt-test/scoverage/scala3-coverage-excluded-files/test
index b19476ca..08688334 100644
--- a/src/sbt-test/scoverage/scala3-coverage-excluded-files/test
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-files/test
@@ -4,6 +4,4 @@
 > test
 > coverageReport
 # There should be no directory for the excluded files
-#-$ exists target/scala-3.2.0-RC1/scoverage-report/two
-# But right now there is, because Scala3 does not support excluding files
-$ exists target/scala-3.2.0-RC1/scoverage-report/two
+-$ exists target/scala-3.4.2/scoverage-report/two
\ No newline at end of file
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/build.sbt b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/build.sbt
new file mode 100644
index 00000000..083a1e20
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/build.sbt
@@ -0,0 +1,13 @@
+version := "0.1"
+
+scalaVersion := "3.4.2"
+
+libraryDependencies += "org.scalameta" %% "munit" % "0.7.29" % Test
+
+coverageExcludedPackages := "two\\..*"
+
+resolvers ++= {
+  if (sys.props.get("plugin.version").exists(_.endsWith("-SNAPSHOT")))
+    Seq(Resolver.sonatypeRepo("snapshots"))
+  else Seq.empty
+}
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/project/build.properties b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/project/build.properties
new file mode 100644
index 00000000..04267b14
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/project/build.properties
@@ -0,0 +1 @@
+sbt.version=1.9.9
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/project/plugins.sbt b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/project/plugins.sbt
new file mode 100644
index 00000000..8d349239
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/project/plugins.sbt
@@ -0,0 +1,16 @@
+val pluginVersion = sys.props.getOrElse(
+  "plugin.version",
+  throw new RuntimeException(
+    """|The system property 'plugin.version' is not defined.
+       |Specify this property using the scriptedLaunchOpts -D.""".stripMargin
+  )
+)
+
+addSbtPlugin("org.scoverage" % "sbt-scoverage" % pluginVersion)
+
+resolvers ++= {
+  if (pluginVersion.endsWith("-SNAPSHOT"))
+    Seq(Resolver.sonatypeRepo("snapshots"))
+  else
+    Seq.empty
+}
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/main/scala/GoodCoverage.scala b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/main/scala/GoodCoverage.scala
new file mode 100644
index 00000000..ac6582bb
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/main/scala/GoodCoverage.scala
@@ -0,0 +1,7 @@
+object GoodCoverage {
+
+  def sum(num1: Int, num2: Int) = {
+    if (0 == num1) num2 else if (0 == num2) num1 else num1 + num2
+  }
+
+}
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/main/scala/two/GoodCoverage.scala b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/main/scala/two/GoodCoverage.scala
new file mode 100644
index 00000000..587e11e1
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/main/scala/two/GoodCoverage.scala
@@ -0,0 +1,9 @@
+package two
+
+object GoodCoverage {
+
+  def sum(num1: Int, num2: Int) = {
+    if (0 == num1) num2 else if (0 == num2) num1 else num1 + num2
+  }
+
+}
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/test/scala/GoodCoverageSpec.scala b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/test/scala/GoodCoverageSpec.scala
new file mode 100644
index 00000000..44eec1c9
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/src/test/scala/GoodCoverageSpec.scala
@@ -0,0 +1,19 @@
+import munit.FunSuite
+
+/** Created by tbarke001c on 7/8/14.
+  */
+class GoodCoverageSpec extends FunSuite {
+
+  test("GoodCoverage should sum two numbers") {
+    assertEquals(GoodCoverage.sum(1, 2), 3)
+    assertEquals(GoodCoverage.sum(0, 3), 3)
+    assertEquals(GoodCoverage.sum(3, 0), 3)
+  }
+
+  test("two.GoodCoverage should sum two numbers") {
+    assertEquals(two.GoodCoverage.sum(1, 2), 3)
+    assertEquals(two.GoodCoverage.sum(0, 3), 3)
+    assertEquals(two.GoodCoverage.sum(3, 0), 3)
+  }
+
+}
diff --git a/src/sbt-test/scoverage/scala3-coverage-excluded-packages/test b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/test
new file mode 100644
index 00000000..e611b048
--- /dev/null
+++ b/src/sbt-test/scoverage/scala3-coverage-excluded-packages/test
@@ -0,0 +1,7 @@
+# run scoverage using the coverage task
+> clean
+> coverage
+> test
+> coverageReport
+# There should be no directory for the excluded package
+-$ exists target/scala-3.4.2/scoverage-report/two