diff --git a/.codecov.yml b/.codecov.yml
index bbe2ee8e93..148646abd7 100644
--- a/.codecov.yml
+++ b/.codecov.yml
@@ -6,3 +6,13 @@ coverage:
       default:
         threshold: 0% # Ref: https://docs.codecov.io/docs/codecovyml-reference#coveragestatus
         target: auto
+
+# Since Backstage is a mono repo, flags here help in getting the code coverage of individual packages.
+# Documentation: https://docs.codecov.io/docs/flags
+flags:
+  packages-core:
+    paths:
+      - packages/core/
+  packages-core-api:
+    paths:
+      - packages/core-api/