diff --git a/sdk/nodejs/.gitignore b/sdk/nodejs/.gitignore
index c6bf92ac5..7c3df689f 100644
--- a/sdk/nodejs/.gitignore
+++ b/sdk/nodejs/.gitignore
@@ -4,3 +4,4 @@
 /node_modules/
 /custom_node/
 /runtime/native/node_dev/
+.nyc_output/
diff --git a/sdk/nodejs/Makefile b/sdk/nodejs/Makefile
index a26205e57..ac27b949f 100644
--- a/sdk/nodejs/Makefile
+++ b/sdk/nodejs/Makefile
@@ -46,25 +46,28 @@ install_plugin:: build
 
 install:: install_package install_plugin
 
-istanbul_tests:: $(TEST_ALL_DEPS)
-	$(RUN_TESTSUITE) istanbul ./node_modules/.bin/istanbul test --print none _mocha -- --timeout 120000 --exclude 'bin/tests/automation/**/*.spec.js' 'bin/tests/**/*.spec.js'
-	./node_modules/.bin/istanbul report text-summary
-	./node_modules/.bin/istanbul report text
-	$(RUN_TESTSUITE) istanbul-with-mocks ./node_modules/.bin/istanbul test --print none _mocha -- 'bin/tests_with_mocks/**/*.spec.js'
+unit_tests:: $(TEST_ALL_DEPS)
+	$(RUN_TESTSUITE) unit-nodejs ./node_modules/.bin/nyc -x 'bin/tests/runtime/*ClosureCases*.js' -s mocha --timeout 120000 --exclude 'bin/tests/automation/**/*.spec.js' --exclude 'bin/tests/runtime/closureLoader.spec.js' 'bin/tests/**/*.spec.js'
+	$(RUN_TESTSUITE) unit-nodejs mocha --timeout 120000 'bin/tests/runtime/closureLoader.spec.js'
+	$(RUN_TESTSUITE) unit-with-mocks-nodejs ./node_modules/.bin/nyc -s mocha 'bin/tests_with_mocks/**/*.spec.js'
 
 auto_tests:: $(TEST_ALL_DEPS)
-	$(RUN_TESTSUITE) auto-nodejs ./node_modules/.bin/istanbul test --print none _mocha -- --timeout 120000 'bin/tests/automation/**/*.spec.js'
-	./node_modules/.bin/istanbul report text-summary
-	./node_modules/.bin/istanbul report text
+	$(RUN_TESTSUITE) auto-nodejs ./node_modules/.bin/nyc -s mocha --timeout 120000 'bin/tests/automation/**/*.spec.js'
 
 sxs_tests:: $(TEST_ALL_DEPS)
 	pushd tests/sxs_ts_3.6 && yarn ; tsc ; popd
 	pushd tests/sxs_ts_latest && yarn ; tsc ; popd
 
-test_fast:: sxs_tests istanbul_tests
+test_fast:: sxs_tests unit_tests
+ifneq ($(PULUMI_TEST_COVERAGE_PATH),)
+	if [ -e .nyc_output ]; then ./node_modules/.bin/nyc report -r cobertura --report-dir $(PULUMI_TEST_COVERAGE_PATH); fi
+endif
 	$(GO_TEST_FAST) ${PROJECT_PKGS}
 
-test_all:: sxs_tests istanbul_tests auto_tests
+test_all:: sxs_tests unit_tests auto_tests
+ifneq ($(PULUMI_TEST_COVERAGE_PATH),)
+	if [ -e .nyc_output ]; then ./node_modules/.bin/nyc report -r cobertura --report-dir $(PULUMI_TEST_COVERAGE_PATH); fi
+endif
 	$(GO_TEST) ${PROJECT_PKGS}
 
 dist:: build
diff --git a/sdk/nodejs/package.json b/sdk/nodejs/package.json
index a832982dd..5d8c90f95 100644
--- a/sdk/nodejs/package.json
+++ b/sdk/nodejs/package.json
@@ -39,13 +39,16 @@
         "eslint": "^7.32.0",
         "eslint-plugin-header": "^3.1.1",
         "eslint-plugin-import": "^2.23.4",
-        "istanbul": "^0.4.5",
-        "mocha": "^3.5.0"
+        "nyc": "^15.1.0",
+        "mocha": "^9.0.0"
     },
     "pulumi": {
         "comment": "Do not remove. Marks this as as a deployment-time-only package"
     },
     "engines": {
         "node": ">=8.13.0 || >=10.10.0"
+    },
+    "mocha": {
+        "require": ["ts-node/register", "source-map-support/register"]
     }
 }
diff --git a/sdk/nodejs/tsconfig.json b/sdk/nodejs/tsconfig.json
index 33369f709..e200f468a 100644
--- a/sdk/nodejs/tsconfig.json
+++ b/sdk/nodejs/tsconfig.json
@@ -6,7 +6,7 @@
         "module": "commonjs",
         "moduleResolution": "node",
         "declaration": true,
-        "sourceMap": false,
+        "sourceMap": true,
         "stripInternal": true,
         "experimentalDecorators": true,
         "pretty": true,