diff --git a/ci/run_pylibcudf_pytests.sh b/ci/run_pylibcudf_pytests.sh
new file mode 100755
index 00000000000..2341801e4d0
--- /dev/null
+++ b/ci/run_pylibcudf_pytests.sh
@@ -0,0 +1,11 @@
+#!/bin/bash
+# Copyright (c) 2025, NVIDIA CORPORATION.
+
+set -euo pipefail
+
+# It is essential to cd into python/pylibcudf/pylibcudf as `pytest-xdist` + `coverage` seem to work only at this directory level.
+
+# Support invoking run_cudf_pytests.sh outside the script directory
+cd "$(dirname "$(realpath "${BASH_SOURCE[0]}")")"/../python/pylibcudf/pylibcudf/
+
+pytest --cache-clear --ignore="benchmarks" "$@" tests
diff --git a/ci/test_python_common.sh b/ci/test_python_common.sh
index c6c6a3957b9..65d3125552a 100755
--- a/ci/test_python_common.sh
+++ b/ci/test_python_common.sh
@@ -41,4 +41,5 @@ rapids-mamba-retry install \
   --channel "${CPP_CHANNEL}" \
   --channel "${PYTHON_CHANNEL}" \
   "cudf=${RAPIDS_VERSION}" \
+  "pylibcudf=${RAPIDS_VERSION}" \
   "libcudf=${RAPIDS_VERSION}"
diff --git a/ci/test_python_cudf.sh b/ci/test_python_cudf.sh
index 9528549a562..3312c2b82b7 100755
--- a/ci/test_python_cudf.sh
+++ b/ci/test_python_cudf.sh
@@ -1,5 +1,5 @@
 #!/bin/bash
-# Copyright (c) 2022-2024, NVIDIA CORPORATION.
+# Copyright (c) 2022-2025, NVIDIA CORPORATION.
 
 # Support invoking test_python_cudf.sh outside the script directory
 cd "$(dirname "$(realpath "${BASH_SOURCE[0]}")")"/../;
@@ -15,12 +15,14 @@ trap "EXITCODE=1" ERR
 set +e
 
 rapids-logger "pytest pylibcudf"
-pushd python/pylibcudf/pylibcudf/tests
-python -m pytest \
-  --cache-clear \
+./ci/run_pylibcudf_pytests.sh \
+  --junitxml="${RAPIDS_TESTS_DIR}/junit-pylibcudf.xml" \
+  --numprocesses=8 \
   --dist=worksteal \
-  .
-popd
+  --cov-config=../.coveragerc \
+  --cov=pylibcudf \
+  --cov-report=xml:"${RAPIDS_COVERAGE_DIR}/pylibcudf-coverage.xml" \
+  --cov-report=term
 
 rapids-logger "pytest cudf"
 ./ci/run_cudf_pytests.sh \
diff --git a/python/pylibcudf/.coveragerc b/python/pylibcudf/.coveragerc
new file mode 100644
index 00000000000..11af8781634
--- /dev/null
+++ b/python/pylibcudf/.coveragerc
@@ -0,0 +1,3 @@
+# Configuration file for Python coverage tests
+[run]
+source = pylibcudf