diff --git a/cli/tests/integration_tests.rs b/cli/tests/integration_tests.rs
index 31d6342745..cd222f0b4e 100644
--- a/cli/tests/integration_tests.rs
+++ b/cli/tests/integration_tests.rs
@@ -3316,6 +3316,12 @@ itest!(deno_test_coverage {
   exit_code: 0,
 });
 
+itest!(deno_test_branch_coverage {
+  args: "test --coverage --unstable test_branch_coverage.ts",
+  output: "test_branch_coverage.out",
+  exit_code: 0,
+});
+
 itest!(deno_test_coverage_explicit {
   args: "test --coverage=.test_coverage --unstable test_coverage.ts",
   output: "test_coverage.out",
diff --git a/cli/tests/subdir/branch.ts b/cli/tests/subdir/branch.ts
new file mode 100644
index 0000000000..bb7aec9ebe
--- /dev/null
+++ b/cli/tests/subdir/branch.ts
@@ -0,0 +1,7 @@
+export function branch(condition: boolean): boolean {
+  if (condition) {
+    return true;
+  } else {
+    return false;
+  }
+}
diff --git a/cli/tests/test_branch_coverage.out b/cli/tests/test_branch_coverage.out
new file mode 100644
index 0000000000..69e81f8818
--- /dev/null
+++ b/cli/tests/test_branch_coverage.out
@@ -0,0 +1,10 @@
+Check [WILDCARD]/tests/$deno$test.ts
+running 1 tests
+test branch ... ok ([WILDCARD])
+
+test result: ok. 1 passed; 0 failed; 0 ignored; 0 measured; 0 filtered out ([WILDCARD])
+
+cover [WILDCARD]/tests/subdir/branch.ts ... 66.667% (6/9)
+   5 |     else {
+   6 |         return false;
+   7 |     }
diff --git a/cli/tests/test_branch_coverage.ts b/cli/tests/test_branch_coverage.ts
new file mode 100644
index 0000000000..7e3adb737d
--- /dev/null
+++ b/cli/tests/test_branch_coverage.ts
@@ -0,0 +1,5 @@
+import { branch } from "./subdir/branch.ts";
+
+Deno.test("branch", function () {
+  branch(true);
+});
diff --git a/cli/tools/coverage.rs b/cli/tools/coverage.rs
index 2b030333ca..020d358bad 100644
--- a/cli/tools/coverage.rs
+++ b/cli/tools/coverage.rs
@@ -127,7 +127,7 @@ impl PrettyCoverageReporter {
     script_coverage: &ScriptCoverage,
     script_source: &str,
   ) {
-    let lines = script_source.lines().collect::<Vec<_>>();
+    let lines = script_source.split('\n').collect::<Vec<_>>();
 
     let mut covered_lines: Vec<usize> = Vec::new();
     let mut uncovered_lines: Vec<usize> = Vec::new();
@@ -137,27 +137,47 @@ impl PrettyCoverageReporter {
       let line_end_offset = line_start_offset + line.len();
 
       let mut count = 0;
+
+      // Count the hits of ranges that include the entire line which will always be at-least one
+      // as long as the code has been evaluated.
       for function in &script_coverage.functions {
         for range in &function.ranges {
           if range.start_offset <= line_start_offset
             && range.end_offset >= line_end_offset
           {
-            if range.count == 0 {
-              count = 0;
-              break;
-            }
-
             count += range.count;
           }
         }
-
-        line_start_offset = line_end_offset;
       }
+
+      // Reset the count if any block intersects with the current line has a count of
+      // zero.
+      //
+      // We check for intersection instead of inclusion here because a block may be anywhere
+      // inside a line.
+      for function in &script_coverage.functions {
+        for range in &function.ranges {
+          if range.count > 0 {
+            continue;
+          }
+
+          if (range.start_offset < line_start_offset
+            && range.end_offset > line_start_offset)
+            || (range.start_offset < line_end_offset
+              && range.end_offset > line_end_offset)
+          {
+            count = 0;
+          }
+        }
+      }
+
       if count > 0 {
         covered_lines.push(index);
       } else {
         uncovered_lines.push(index);
       }
+
+      line_start_offset += line.len() + 1;
     }
 
     if !self.quiet {