diff --git a/.coveragerc b/.coveragerc
new file mode 100644
index 0000000000..c05422050e
--- /dev/null
+++ b/.coveragerc
@@ -0,0 +1,5 @@
+[run]
+plugins = Cython.Coverage
+branch = True
+source = dpctl
+omit = dpctl/tests/*, *__init__.py
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5479c3109d..69038c44d4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,10 +6,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 
 ## [Unreleased]
-
 ### Added
 - Documentation improvements
-- Cmake improvements and Coverage for C API
+- Cmake improvements and Coverage for C API, Cython and Python
 - Add support for Level Zero
 - Code of conduct
 
@@ -17,7 +16,6 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Remove `cython` from `install_requires`. It allows use `dpCtl` in `numba` extensions.
 - Incorrect import in example.
 
-
 ## [0.5.0] - 2020-12-17
 ### Added
 - `_Memory.get_pointer_type` static method which returns kind of USM pointer.
@@ -67,7 +65,6 @@ supports USM.
   - Fix Gtests configuration.
 
 ## [0.3.7] - 2020-10-08
-
 ### Fixed
 - A crash on Windows due a Level Zero driver problem. Each device was getting enumerated twice. To handle the issue, we added a temporary fix to use only first device for each device type and backend (#118).
 
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index e0de9adcc5..a0de847880 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -1,6 +1,6 @@
-# Mechanical Source Issues¶
+# Mechanical Source Issues
 
-## Source Code Formatting¶
+## Source Code Formatting
 
 ### C/C++ code style
 
@@ -87,3 +87,62 @@ Every Python and Cython file should only include the following license header:
 # limitations under the License.
 ```
 The copyright year should be updated every calendar year.
+
+## Code Coverage
+
+Implement python, cython and c++ file coverage using `coverage` and `llvm-cov` packages on Linux.
+
+### Using Code Coverage
+
+You need to install additional packages and add an environment variable to cover:
+- conda install cmake
+- conda install coverage
+- conda install conda-forge::lcov
+- conda install conda-forge::gtest
+- export CODE_COVERAGE=ON
+
+CODE_COVERAGE allows you to build a debug version of dpctl and enable string tracing, which allows you to analyze strings to create a coverage report.
+It was added for the convenience of configuring the CI in the future.
+
+Installing the dpctl package:
+- python setup.py develop
+
+It is important that there are no files of the old build in the folder.
+Use `git clean -xdf` to clean up the working tree.
+
+The coverage report will appear during the build in the console. This report contains information about c++ file coverage.
+The `dpctl-c-api-coverage` folder will appear in the root folder after installation.
+The folder contains a report on the coverage of c++ files in html format.
+
+You need to run tests to cover the cython and python files:
+- coverage run -m unittest dpctl.tests
+
+The required flags for the command coverage run are contained in the file `.coveragerc`.
+
+The simplest reporting is a textual summary produced with report:
+- coverage report
+
+For each module executed, the report shows the count of executable statements, the number of those statements missed, and the resulting coverage, expressed as a percentage.
+
+The `-m` flag also shows the line numbers of missing statements:
+- coverage report -m
+
+To create an annotated HTML listings with coverage results:
+- coverage html
+
+The `htmlcov` folder will appear in the root folder of the project. It contains reports on the coverage of python and cython files in html format.
+
+Erase previously collected coverage data:
+- coverage erase
+
+### Error in the build process
+
+An error occurs during the dcptl build with the CODE_COVERAGE environment variable:
+```
+error: '../compat/unistd.h' file not found, did you mean 'compat/unistd.h'?
+#   include "../compat/unistd.h"
+            ^
+1 error generated.
+```
+The error is related to the `tcl` package.
+You need to remove the tcl package to resolve this error.
diff --git a/scripts/build_backend.py b/scripts/build_backend.py
index 890dacb691..a30f03dbff 100644
--- a/scripts/build_backend.py
+++ b/scripts/build_backend.py
@@ -35,6 +35,7 @@
     assert False, sys.platform + " not supported"
 
 ONEAPI_ROOT = os.environ.get("ONEAPI_ROOT")
+CODE_COVERAGE = os.environ.get("CODE_COVERAGE")
 
 if IS_LIN:
     DPCPP_ROOT = os.path.join(ONEAPI_ROOT, "compiler/latest/linux")
@@ -55,20 +56,41 @@
 backends = os.path.join(dpctl_dir, "dpctl-capi")
 
 if IS_LIN:
-    cmake_args = [
-        "cmake",
-        "-DCMAKE_BUILD_TYPE=Release",
-        "-DCMAKE_INSTALL_PREFIX=" + INSTALL_PREFIX,
-        "-DCMAKE_PREFIX_PATH=" + INSTALL_PREFIX,
-        "-DDPCPP_INSTALL_DIR=" + DPCPP_ROOT,
-        "-DCMAKE_C_COMPILER:PATH=" + os.path.join(DPCPP_ROOT, "bin", "clang"),
-        "-DCMAKE_CXX_COMPILER:PATH=" + os.path.join(DPCPP_ROOT, "bin", "dpcpp"),
-        "-DDPCTL_ENABLE_LO_PROGRAM_CREATION=ON",
-        backends,
-    ]
-    subprocess.check_call(cmake_args, stderr=subprocess.STDOUT, shell=False)
-    subprocess.check_call(["make", "V=1", "-j", "4"])
-    subprocess.check_call(["make", "install"])
+    if CODE_COVERAGE:
+        cmake_args = [
+            "cmake",
+            "-DCMAKE_BUILD_TYPE=Debug",
+            "-DCMAKE_INSTALL_PREFIX=" + INSTALL_PREFIX,
+            "-DCMAKE_PREFIX_PATH=" + INSTALL_PREFIX,
+            "-DDPCPP_INSTALL_DIR=" + DPCPP_ROOT,
+            "-DCMAKE_C_COMPILER:PATH=" + os.path.join(DPCPP_ROOT, "bin", "clang"),
+            "-DCMAKE_CXX_COMPILER:PATH=" + os.path.join(DPCPP_ROOT, "bin", "dpcpp"),
+            "-DDPCTL_ENABLE_LO_PROGRAM_CREATION=ON",
+            "-DDPCTL_BUILD_CAPI_TESTS=ON",
+            "-DDPCTL_GENERATE_COVERAGE=ON",
+            "-DDPCTL_COVERAGE_REPORT_OUTPUT_DIR=" + dpctl_dir,
+            backends,
+        ]
+        subprocess.check_call(cmake_args, stderr=subprocess.STDOUT, shell=False)
+        subprocess.check_call(["make", "V=1", "-j", "4"])
+        subprocess.check_call(["make", "install"])
+        subprocess.check_call(["make", "lcov-genhtml"])
+
+    else:
+        cmake_args = [
+            "cmake",
+            "-DCMAKE_BUILD_TYPE=Release",
+            "-DCMAKE_INSTALL_PREFIX=" + INSTALL_PREFIX,
+            "-DCMAKE_PREFIX_PATH=" + INSTALL_PREFIX,
+            "-DDPCPP_INSTALL_DIR=" + DPCPP_ROOT,
+            "-DCMAKE_C_COMPILER:PATH=" + os.path.join(DPCPP_ROOT, "bin", "clang"),
+            "-DCMAKE_CXX_COMPILER:PATH=" + os.path.join(DPCPP_ROOT, "bin", "dpcpp"),
+            "-DDPCTL_ENABLE_LO_PROGRAM_CREATION=ON",
+            backends,
+        ]
+        subprocess.check_call(cmake_args, stderr=subprocess.STDOUT, shell=False)
+        subprocess.check_call(["make", "V=1", "-j", "4"])
+        subprocess.check_call(["make", "install"])
 
     os.chdir(dpctl_dir)
     for file in glob.glob(os.path.join(dpctl_dir, "install", "lib", "*.so")):
diff --git a/setup.py b/setup.py
index b476eb29de..e2b13d9cae 100644
--- a/setup.py
+++ b/setup.py
@@ -113,6 +113,7 @@ def extensions():
     ela = get_sdl_ldflags()
     libs = []
     librarys = []
+    CODE_COVERAGE = os.environ.get("CODE_COVERAGE")
 
     if IS_LIN:
         libs += ["rt", "DPCTLSyclInterface"]
@@ -148,6 +149,15 @@ def extensions():
         "language": "c++",
     }
 
+    if CODE_COVERAGE:
+        extension_args.update(
+            {
+                "define_macros": [
+                    ("CYTHON_TRACE", "1"),
+                ]
+            }
+        )
+
     extensions = [
         Extension(
             "dpctl._sycl_context",
@@ -199,8 +209,10 @@ def extensions():
             **extension_args
         ),
     ]
-
-    exts = cythonize(extensions)
+    if CODE_COVERAGE:
+        exts = cythonize(extensions, compiler_directives={"linetrace": True})
+    else:
+        exts = cythonize(extensions)
     return exts