diff --git a/e2e/__tests__/__snapshots__/coverageHandlebars.test.ts.snap b/e2e/__tests__/__snapshots__/coverageHandlebars.test.ts.snap
new file mode 100644
index 000000000000..40e24e626313
--- /dev/null
+++ b/e2e/__tests__/__snapshots__/coverageHandlebars.test.ts.snap
@@ -0,0 +1,371 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`code coverage for Handlebars 1`] = `
+Object {
+  "greet.hbs": Object {
+    "b": Object {
+      "0": Array [
+        2,
+        0,
+      ],
+      "1": Array [
+        1,
+        0,
+      ],
+      "2": Array [
+        1,
+        0,
+      ],
+      "3": Array [
+        1,
+        1,
+      ],
+      "4": Array [
+        1,
+        1,
+      ],
+      "5": Array [
+        1,
+        0,
+      ],
+    },
+    "branchMap": Object {
+      "0": Object {
+        "loc": Object {
+          "end": Object {
+            "column": null,
+            "line": 1,
+          },
+          "start": Object {
+            "column": 0,
+            "line": 1,
+          },
+        },
+        "locations": Array [
+          Object {
+            "end": Object {
+              "column": null,
+              "line": 1,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 1,
+            },
+          },
+          Object {
+            "end": Object {
+              "column": null,
+              "line": 1,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 1,
+            },
+          },
+        ],
+        "type": "cond-expr",
+      },
+      "1": Object {
+        "loc": Object {
+          "end": Object {
+            "column": 6,
+            "line": 2,
+          },
+          "start": Object {
+            "column": 0,
+            "line": 2,
+          },
+        },
+        "locations": Array [
+          Object {
+            "end": Object {
+              "column": 6,
+              "line": 2,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 2,
+            },
+          },
+          Object {
+            "end": Object {
+              "column": 6,
+              "line": 2,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 2,
+            },
+          },
+        ],
+        "type": "cond-expr",
+      },
+      "2": Object {
+        "loc": Object {
+          "end": Object {
+            "column": 10,
+            "line": 2,
+          },
+          "start": Object {
+            "column": 6,
+            "line": 2,
+          },
+        },
+        "locations": Array [
+          Object {
+            "end": Object {
+              "column": 10,
+              "line": 2,
+            },
+            "start": Object {
+              "column": 6,
+              "line": 2,
+            },
+          },
+          Object {
+            "end": Object {
+              "column": 10,
+              "line": 2,
+            },
+            "start": Object {
+              "column": 6,
+              "line": 2,
+            },
+          },
+        ],
+        "type": "cond-expr",
+      },
+      "3": Object {
+        "loc": Object {
+          "end": Object {
+            "column": 2,
+            "line": 7,
+          },
+          "start": Object {
+            "column": 0,
+            "line": 7,
+          },
+        },
+        "locations": Array [
+          Object {
+            "end": Object {
+              "column": 2,
+              "line": 7,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 7,
+            },
+          },
+          Object {
+            "end": Object {
+              "column": 2,
+              "line": 7,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 7,
+            },
+          },
+        ],
+        "type": "cond-expr",
+      },
+      "4": Object {
+        "loc": Object {
+          "end": Object {
+            "column": 2,
+            "line": 7,
+          },
+          "start": Object {
+            "column": 0,
+            "line": 7,
+          },
+        },
+        "locations": Array [
+          Object {
+            "end": Object {
+              "column": 2,
+              "line": 7,
+            },
+            "start": Object {
+              "column": 0,
+              "line": 7,
+            },
+          },
+          Object {
+            "end": Object {
+              "column": 8,
+              "line": 7,
+            },
+            "start": Object {
+              "column": 2,
+              "line": 7,
+            },
+          },
+        ],
+        "type": "binary-expr",
+      },
+      "5": Object {
+        "loc": Object {
+          "end": Object {
+            "column": 8,
+            "line": 7,
+          },
+          "start": Object {
+            "column": 2,
+            "line": 7,
+          },
+        },
+        "locations": Array [
+          Object {
+            "end": Object {
+              "column": 8,
+              "line": 7,
+            },
+            "start": Object {
+              "column": 2,
+              "line": 7,
+            },
+          },
+          Object {
+            "end": Object {
+              "column": 8,
+              "line": 7,
+            },
+            "start": Object {
+              "column": 2,
+              "line": 7,
+            },
+          },
+        ],
+        "type": "cond-expr",
+      },
+    },
+    "f": Object {
+      "0": 1,
+      "1": 0,
+      "2": 1,
+    },
+    "fnMap": Object {
+      "0": Object {
+        "decl": Object {
+          "end": Object {
+            "column": null,
+            "line": 2,
+          },
+          "start": Object {
+            "column": 10,
+            "line": 2,
+          },
+        },
+        "loc": Object {
+          "end": Object {
+            "column": null,
+            "line": 2,
+          },
+          "start": Object {
+            "column": 10,
+            "line": 2,
+          },
+        },
+        "name": "(anonymous_0)",
+      },
+      "1": Object {
+        "decl": Object {
+          "end": Object {
+            "column": null,
+            "line": 4,
+          },
+          "start": Object {
+            "column": 8,
+            "line": 4,
+          },
+        },
+        "loc": Object {
+          "end": Object {
+            "column": null,
+            "line": 4,
+          },
+          "start": Object {
+            "column": 8,
+            "line": 4,
+          },
+        },
+        "name": "(anonymous_1)",
+      },
+      "2": Object {
+        "decl": Object {
+          "end": Object {
+            "column": null,
+            "line": 1,
+          },
+          "start": Object {
+            "column": 0,
+            "line": 1,
+          },
+        },
+        "loc": Object {
+          "end": Object {
+            "column": null,
+            "line": 1,
+          },
+          "start": Object {
+            "column": 0,
+            "line": 1,
+          },
+        },
+        "name": "(anonymous_2)",
+      },
+    },
+    "path": "greet.hbs",
+    "s": Object {
+      "0": 1,
+      "1": 0,
+      "2": 2,
+      "3": 1,
+    },
+    "statementMap": Object {
+      "0": Object {
+        "end": Object {
+          "column": null,
+          "line": 2,
+        },
+        "start": Object {
+          "column": 10,
+          "line": 2,
+        },
+      },
+      "1": Object {
+        "end": Object {
+          "column": null,
+          "line": 4,
+        },
+        "start": Object {
+          "column": 8,
+          "line": 4,
+        },
+      },
+      "2": Object {
+        "end": Object {
+          "column": null,
+          "line": 1,
+        },
+        "start": Object {
+          "column": 0,
+          "line": 1,
+        },
+      },
+      "3": Object {
+        "end": Object {
+          "column": null,
+          "line": 7,
+        },
+        "start": Object {
+          "column": 0,
+          "line": 1,
+        },
+      },
+    },
+  },
+}
+`;
diff --git a/e2e/__tests__/coverageHandlebars.test.ts b/e2e/__tests__/coverageHandlebars.test.ts
new file mode 100644
index 000000000000..a07e5c529b80
--- /dev/null
+++ b/e2e/__tests__/coverageHandlebars.test.ts
@@ -0,0 +1,38 @@
+/**
+ * Copyright (c) Facebook, Inc. and its affiliates. All Rights Reserved.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+import {readFileSync} from 'fs';
+import * as path from 'path';
+import {cleanup, run} from '../Utils';
+import runJest from '../runJest';
+
+const dir = path.resolve(__dirname, '../coverage-handlebars');
+const coverageDir = path.join(dir, 'coverage');
+
+beforeAll(() => {
+  cleanup(coverageDir);
+});
+
+it('code coverage for Handlebars', () => {
+  run('yarn', dir);
+  const result = runJest(dir, ['--coverage', '--no-cache']);
+
+  expect(result.exitCode).toBe(0);
+
+  const coverageMapFile = path.join(coverageDir, 'coverage-final.json');
+  const coverageMap = JSON.parse(readFileSync(coverageMapFile, 'utf-8'));
+
+  // reduce absolute paths embedded in the coverage map to just filenames
+  Object.keys(coverageMap).forEach(filename => {
+    coverageMap[filename].path = path.basename(coverageMap[filename].path);
+    delete coverageMap[filename].hash;
+    coverageMap[path.basename(filename)] = coverageMap[filename];
+    delete coverageMap[filename];
+  });
+  expect(coverageMap).toHaveProperty(['greet.hbs']);
+  expect(coverageMap).toMatchSnapshot();
+});
diff --git a/e2e/coverage-handlebars/__tests__/greet.js b/e2e/coverage-handlebars/__tests__/greet.js
new file mode 100644
index 000000000000..5b6b62a1a605
--- /dev/null
+++ b/e2e/coverage-handlebars/__tests__/greet.js
@@ -0,0 +1,7 @@
+const greet = require('../greet.hbs');
+
+test('am', () => {
+  expect(greet({am: true, name: 'Joe'})).toEqual(
+    '<p>Good\n  morning\nJoe!</p>\n'
+  );
+});
diff --git a/e2e/coverage-handlebars/greet.hbs b/e2e/coverage-handlebars/greet.hbs
new file mode 100644
index 000000000000..e6b81e509736
--- /dev/null
+++ b/e2e/coverage-handlebars/greet.hbs
@@ -0,0 +1,7 @@
+<p>Good
+{{#if am}}
+  morning
+{{else}}
+  evening
+{{/if}}
+{{name}}!</p>
diff --git a/e2e/coverage-handlebars/package.json b/e2e/coverage-handlebars/package.json
new file mode 100644
index 000000000000..3eb23f01b754
--- /dev/null
+++ b/e2e/coverage-handlebars/package.json
@@ -0,0 +1,12 @@
+{
+  "jest": {
+    "transform": {
+      "\\.hbs$": "<rootDir>/transform-handlebars.js"
+    },
+    "testEnvironment": "node"
+  },
+  "dependencies": {
+    "handlebars": "^4.7.3",
+    "source-map": "^0.6.1"
+  }
+}
diff --git a/e2e/coverage-handlebars/transform-handlebars.js b/e2e/coverage-handlebars/transform-handlebars.js
new file mode 100644
index 000000000000..a57ca08030ea
--- /dev/null
+++ b/e2e/coverage-handlebars/transform-handlebars.js
@@ -0,0 +1,13 @@
+const Handlebars = require('handlebars/dist/cjs/handlebars.js');
+const {SourceMapConsumer, SourceNode} = require('source-map');
+
+exports.process = (code, filename) => {
+  const pc = Handlebars.precompile(code, {srcName: filename});
+  const out = new SourceNode(null, null, null, [
+    'const Handlebars = require("handlebars/dist/cjs/handlebars.runtime.js");\n',
+    'module.exports = Handlebars.template(',
+    SourceNode.fromStringWithSourceMap(pc.code, new SourceMapConsumer(pc.map)),
+    ');\n',
+  ]).toStringWithSourceMap();
+  return {code: out.code, map: out.map.toString()};
+};
diff --git a/e2e/coverage-handlebars/yarn.lock b/e2e/coverage-handlebars/yarn.lock
new file mode 100644
index 000000000000..71a0f6e78e8b
--- /dev/null
+++ b/e2e/coverage-handlebars/yarn.lock
@@ -0,0 +1,55 @@
+# THIS IS AN AUTOGENERATED FILE. DO NOT EDIT THIS FILE DIRECTLY.
+# yarn lockfile v1
+
+
+commander@~2.20.3:
+  version "2.20.3"
+  resolved "https://registry.yarnpkg.com/commander/-/commander-2.20.3.tgz#fd485e84c03eb4881c20722ba48035e8531aeb33"
+  integrity sha512-GpVkmM8vF2vQUkj2LvZmD35JxeJOLCwJ9cUkugyk2nuhbv3+mJvpLYYt+0+USMxE+oj+ey/lJEnhZw75x/OMcQ==
+
+handlebars@^4.7.3:
+  version "4.7.3"
+  resolved "https://registry.yarnpkg.com/handlebars/-/handlebars-4.7.3.tgz#8ece2797826886cf8082d1726ff21d2a022550ee"
+  integrity sha512-SRGwSYuNfx8DwHD/6InAPzD6RgeruWLT+B8e8a7gGs8FWgHzlExpTFMEq2IA6QpAfOClpKHy6+8IqTjeBCu6Kg==
+  dependencies:
+    neo-async "^2.6.0"
+    optimist "^0.6.1"
+    source-map "^0.6.1"
+  optionalDependencies:
+    uglify-js "^3.1.4"
+
+minimist@~0.0.1:
+  version "0.0.10"
+  resolved "https://registry.yarnpkg.com/minimist/-/minimist-0.0.10.tgz#de3f98543dbf96082be48ad1a0c7cda836301dcf"
+  integrity sha1-3j+YVD2/lggr5IrRoMfNqDYwHc8=
+
+neo-async@^2.6.0:
+  version "2.6.1"
+  resolved "https://registry.yarnpkg.com/neo-async/-/neo-async-2.6.1.tgz#ac27ada66167fa8849a6addd837f6b189ad2081c"
+  integrity sha512-iyam8fBuCUpWeKPGpaNMetEocMt364qkCsfL9JuhjXX6dRnguRVOfk2GZaDpPjcOKiiXCPINZC1GczQ7iTq3Zw==
+
+optimist@^0.6.1:
+  version "0.6.1"
+  resolved "https://registry.yarnpkg.com/optimist/-/optimist-0.6.1.tgz#da3ea74686fa21a19a111c326e90eb15a0196686"
+  integrity sha1-2j6nRob6IaGaERwybpDrFaAZZoY=
+  dependencies:
+    minimist "~0.0.1"
+    wordwrap "~0.0.2"
+
+source-map@^0.6.1, source-map@~0.6.1:
+  version "0.6.1"
+  resolved "https://registry.yarnpkg.com/source-map/-/source-map-0.6.1.tgz#74722af32e9614e9c287a8d0bbde48b5e2f1a263"
+  integrity sha512-UjgapumWlbMhkBgzT7Ykc5YXUT46F0iKu8SGXq0bcwP5dz/h0Plj6enJqjz1Zbq2l5WaqYnrVbwWOWMyF3F47g==
+
+uglify-js@^3.1.4:
+  version "3.8.0"
+  resolved "https://registry.yarnpkg.com/uglify-js/-/uglify-js-3.8.0.tgz#f3541ae97b2f048d7e7e3aa4f39fd8a1f5d7a805"
+  integrity sha512-ugNSTT8ierCsDHso2jkBHXYrU8Y5/fY2ZUprfrJUiD7YpuFvV4jODLFmb3h4btQjqr5Nh4TX4XtgDfCU1WdioQ==
+  dependencies:
+    commander "~2.20.3"
+    source-map "~0.6.1"
+
+wordwrap@~0.0.2:
+  version "0.0.3"
+  resolved "https://registry.yarnpkg.com/wordwrap/-/wordwrap-0.0.3.tgz#a3d5da6cd5c0bc0008d37234bbaf1bed63059107"
+  integrity sha1-o9XabNXAvAAI03I0u68b7WMFkQc=