diff --git a/server/.gitignore b/server/.gitignore
index d98cbec7c..544282769 100644
--- a/server/.gitignore
+++ b/server/.gitignore
@@ -18,3 +18,6 @@ Cargo.lock
 Session.vim
 
 .env
+
+# grcov outputs
+*.profraw
diff --git a/server/README.md b/server/README.md
index af1002d48..a097c8a6d 100644
--- a/server/README.md
+++ b/server/README.md
@@ -136,3 +136,9 @@ The easiest way to get these tests to pass is to:
 Alternatively, if you're only interested in running unit tests, you can just run `cargo test --lib`. These tests don't make any assumptions about the surrounding environment.
 
 To run only a specific test (e.g. only the application tests), you can use the `--test` flag to `cargo test` which supports common Unix glob patterns. For example: `cargo test --test '*app*'`.
+
+# Code Coverage
+To get a code coverage report, first make sure you have the following installations:
+- `cargo install grcov`
+- `rustup component add llvm-tools-preview`
+Then, run `./run-tests-with-grcov.sh`, which is a wrapper around `./run-tests.sh` that includes code coverage evaluation and report generation using `grcov`. When it finishes, it will print the location of the report HTML file to your shell.
diff --git a/server/run-tests-with-grcov.sh b/server/run-tests-with-grcov.sh
new file mode 100755
index 000000000..fd1574c40
--- /dev/null
+++ b/server/run-tests-with-grcov.sh
@@ -0,0 +1,19 @@
+#!/bin/sh -e
+
+# cleanly run the following commands in their own session
+bash -c "
+# tell Rust to run with coverage instrumentation
+RUSTFLAGS=\"-Cinstrument-coverage\"
+# give grcov a profile name template for output files
+LLVM_PROFILE_FILE=\"svix-webhooks-%p-%m.profraw\"
+# put the compiler in nightly mode
+RUSTC_BOOTSTRAP=1
+
+# run tests
+./run-tests.sh
+" || true
+
+# generate and open report output
+grcov . -s . --binary-path ./target/debug/ -t html --branch --ignore-not-existing -o ./target/debug/coverage/
+
+echo "coverage HTML file at $(pwd)/target/debug/coverage/index.html"