diff --git a/.coveragerc b/.coveragerc
index bc634295610..b7a9fdb4e05 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -1,5 +1,10 @@
 [run]
-source = vllm
+# Track the installed vllm package (this is what actually gets imported during tests)
+# Use wildcard pattern to match the installed location
+source =
+    vllm
+    */dist-packages/vllm
+    */site-packages/vllm
 omit =
     */tests/*
     */test_*
@@ -12,6 +17,16 @@ omit =
     */benchmarks/*
     */docs/*
 
+[paths]
+# Map all possible vllm locations to a canonical "vllm" path
+# This ensures coverage.combine properly merges data from different test runs
+source =
+    vllm
+    /vllm-workspace/src/vllm
+    /vllm-workspace/vllm
+    */site-packages/vllm
+    */dist-packages/vllm
+
 [report]
 exclude_lines =
     pragma: no cover
diff --git a/codecov.yml b/codecov.yml
new file mode 100644
index 00000000000..304c0be8105
--- /dev/null
+++ b/codecov.yml
@@ -0,0 +1,12 @@
+codecov:
+  require_ci_to_pass: false
+
+fixes:
+  # Map source code paths to repository root paths
+  # Wildcards match any Python version (python3.*)
+  - "/vllm-workspace/src/vllm/::vllm/"
+  - "/vllm-workspace/vllm/::vllm/"
+  - "/usr/local/lib/python3.*/dist-packages/vllm/::vllm/"
+  - "/usr/local/lib/python3.*/site-packages/vllm/::vllm/"
+  - "/usr/lib/python3.*/dist-packages/vllm/::vllm/"
+  - "/usr/lib/python3.*/site-packages/vllm/::vllm/"