diff --git a/README.md b/README.md
index f32ffe1b..6d9c2342 100644
--- a/README.md
+++ b/README.md
@@ -32,6 +32,8 @@ and then:
 
 When running with `parallel` set to true, the final reports can be merged by using `ember coverage-merge`. The final merged output will be stored in the `coverageFolder`.
 
+NOTE: If you are under a module unification based folder structure, you need to ensure that you have `EMBER_CLI_MODULE_UNIFICATION` flag turned to `TRUE`
+
 ## TypeScript integration
 
 Steps:
diff --git a/index.js b/index.js
index 6d84d182..58273998 100644
--- a/index.js
+++ b/index.js
@@ -7,6 +7,7 @@ var config = require('./lib/config');
 const walkSync = require('walk-sync');
 const VersionChecker = require('ember-cli-version-checker');
 const concat = require('lodash.concat');
+const isModuleUnificationProject = require('./lib/module-unification').isModuleUnificationProject;
 
 function requireBabelPlugin(pluginName) {
   let plugin = require(pluginName);
@@ -149,8 +150,11 @@ module.exports = {
    * @returns {Array<String>} include paths
    */
   _getIncludesForAppDirectory: function() {
-    const dir = path.join(this.project.root, 'app');
-    let prefix = this.parent.isEmberCLIAddon() ? 'dummy' : this.parent.name();
+    let root = isModuleUnificationProject(this.project) ? 'src' : 'app';
+    const dir = path.join(this.project.root, root);
+    let prefix = this.parent.isEmberCLIAddon()
+      ? 'dummy'
+      : (isModuleUnificationProject(this.project) ? `${this.parent.name()}/${root}` : this.parent.name());
     return this._getIncludesForDir(dir, prefix);
   },
 
diff --git a/lib/config.js b/lib/config.js
index d139aff0..f5c7eebf 100644
--- a/lib/config.js
+++ b/lib/config.js
@@ -40,7 +40,8 @@ function getDefaultConfig() {
     coverageEnvVar: 'COVERAGE',
     coverageFolder: 'coverage',
     excludes: [
-      '*/mirage/**/*'
+      '*/mirage/**/*',
+      '**/*-test*'
     ],
     reporters: [
       'html',
diff --git a/lib/module-unification.js b/lib/module-unification.js
new file mode 100644
index 00000000..aa7f4683
--- /dev/null
+++ b/lib/module-unification.js
@@ -0,0 +1,7 @@
+'use strict';
+
+module.exports = {
+  isModuleUnificationProject(project) {
+    return project && project.isModuleUnification && project.isModuleUnification();
+  },
+};