diff --git a/.gitignore b/.gitignore
index fd1bffce..25e93d9b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -18,7 +18,8 @@ fixtures/typings-test/*.js
 package-lock.json
 
 # Directories needed for code coverage
-/coverage/
+coverage/
+.nyc_output/
 
 # Keep bundled code out of Git
 dist/
diff --git a/.travis.yml b/.travis.yml
index 1f3c9079..c212b19d 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -13,7 +13,7 @@ env:
   matrix:
     - NPM_COMMAND=tsc
     - NPM_COMMAND=lint
-    - NPM_COMMAND=test
+    - NPM_COMMAND=test-coverage
 notifications:
   email: false
 script: npm run $NPM_COMMAND
diff --git a/.vscode/launch.json b/.vscode/launch.json
deleted file mode 100644
index 064f0f5e..00000000
--- a/.vscode/launch.json
+++ /dev/null
@@ -1,23 +0,0 @@
-{
-  "version": "0.2.0",
-  "configurations": [
-    {
-      "type": "node",
-      "request": "launch",
-      "name": "Mocha Tests",
-      "cwd": "${workspaceRoot}",
-      "runtimeExecutable": "${workspaceRoot}/node_modules/.bin/mocha",
-      "windows": {
-        "runtimeExecutable": "${workspaceRoot}/node_modules/.bin/mocha.cmd"
-      },
-      "runtimeArgs": [
-        "--colors",
-        "--recursive",
-        "${workspaceRoot}/lib"
-      ],
-      "sourceMaps": true,
-      "outFiles": [ "${workspaceRoot}/lib/**/*.js" ],
-      "internalConsoleOptions": "openOnSessionStart"
-    }
-  ]
-}
diff --git a/.vscode/settings.json b/.vscode/settings.json
deleted file mode 100644
index f78b3f81..00000000
--- a/.vscode/settings.json
+++ /dev/null
@@ -1,8 +0,0 @@
-{
-    "search.exclude": {
-        "**/node_modules": true,
-        "**/dist": true,
-        "**/build": true,
-        "**/lib": true
-    }
-}
diff --git a/README.md b/README.md
index a8325bf2..ae003783 100644
--- a/README.md
+++ b/README.md
@@ -150,6 +150,8 @@ computational environment for Jupyter, supporting interactive data science and s
 - [**Hyper**](https://hyper.is): A terminal built on web technologies
 - [**Diag**](https://diag.ai): A better way to troubleshoot problems faster. Capture, share and reapply troubleshooting knowledge so you can focus on solving problems that matter.
 - [**GoTTY**](https://github.com/yudai/gotty): A simple command line tool that shares your terminal as a web application based on xterm.js.
+- [**genact**](https://github.com/svenstaro/genact): A nonsense activity generator.
+
 
 Do you use xterm.js in your application as well? Please [open a Pull Request](https://github.com/sourcelair/xterm.js/pulls) to include it here. We would love to have it in our list.
 
@@ -224,6 +226,16 @@ Then open http://127.0.0.1:3000 in a web browser to access the demo.
 
 *Note: Do not use ConEmu, as it seems to break the demo for some reason.*
 
+## Testing
+
+Tests are run using the following npm scripts:
+
+- `npm test`: This will run both unit tests and the linter
+- `npm run test-suite <file>`: This will run all tests within a particular file, &lt;file&gt; is the test file name excluding the extension (eg. "Linkifier.test")
+- `npm run test-debug`: This will run unit tests with `--inspect-brk`, this can then be automatically debugged using [VS Code auto attach](https://code.visualstudio.com/docs/nodejs/nodejs-debugging#_auto-attach-feature) or manually attached to by a debugger
+- `npm run test-coverage`: This will run all unit tests and produce a coverage report
+- `npm run lint`: This will run the linter only
+
 ## Releases
 
 Xterm.js follows a monthly release cycle roughly.
diff --git a/gulpfile.js b/gulpfile.js
index 8fe5bf9c..7026ec43 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -4,11 +4,9 @@
 
 const browserify = require('browserify');
 const buffer = require('vinyl-buffer');
-const coveralls = require('gulp-coveralls');
 const fs = require('fs-extra');
 const gulp = require('gulp');
 const path = require('path');
-const istanbul = require('gulp-istanbul');
 const merge = require('merge-stream');
 const mocha = require('gulp-mocha');
 const sorcery = require('sorcery');
@@ -25,6 +23,13 @@ let outDir = tsProject.config.compilerOptions.outDir;
 
 const addons = fs.readdirSync(`${__dirname}/src/addons`);
 
+const TEST_PATHS = [
+  `${outDir}/*test.js`,
+  `${outDir}/**/*test.js`,
+  `${outDir}/*integration.js`,
+  `${outDir}/**/*integration.js`
+];
+
 // Under some environments like TravisCI, this comes out at absolute which can
 // break the build. This ensures that the outDir is absolute.
 if (path.normalize(outDir).indexOf(__dirname) !== 0) {
@@ -95,37 +100,22 @@ gulp.task('browserify-addons', function() {
   return merge(...bundles);
 });
 
-gulp.task('instrument-test', function () {
-  return gulp.src([`${outDir}/**/*.js`])
-    // Covering files
-    .pipe(istanbul())
-    // Force `require` to return covered files
-    .pipe(istanbul.hookRequire());
-});
-
-gulp.task('mocha', ['instrument-test'], function () {
-  return gulp.src([
-    `${outDir}/*test.js`,
-    `${outDir}/**/*test.js`,
-    `${outDir}/*integration.js`,
-    `${outDir}/**/*integration.js`
-  ], {read: false})
+gulp.task('mocha', function () {
+  return gulp.src(TEST_PATHS, {read: false})
       .pipe(mocha())
-      .once('error', () => process.exit(1))
-      .pipe(istanbul.writeReports());
+      .once('error', () => process.exit(1));
 });
 
 /**
- * Run single test file by file name(without file extension). Example of the command:
- * gulp mocha-test --test InputHandler.test
+ * Run single test suite (file) by file name (without file extension). Example of the command:
+ * gulp mocha-suite --test InputHandler.test
  */
-gulp.task('mocha-test', ['instrument-test'], function () {
+gulp.task('mocha-suite', [], function () {
   let testName = util.env.test;
   util.log("Run test by Name: " + testName);
   return gulp.src([`${outDir}/${testName}.js`, `${outDir}/**/${testName}.js`], {read: false})
          .pipe(mocha())
-         .once('error', () => process.exit(1))
-         .pipe(istanbul.writeReports());
+         .once('error', () => process.exit(1));
 });
 
 /**
@@ -158,14 +148,6 @@ gulp.task('watch-demo', ['webpack'], () => {
   gulp.watch(['./demo/*', './lib/**/*'], ['webpack']);
 });
 
-/**
- * Submit coverage results to coveralls.io
- */
-gulp.task('coveralls', function () {
-  gulp.src('coverage/**/lcov.info')
-    .pipe(coveralls());
-});
-
 gulp.task('build', ['sorcery', 'sorcery-addons']);
 gulp.task('test', ['mocha']);
 gulp.task('default', ['build']);
diff --git a/package.json b/package.json
index 5e869e32..c7f6f81c 100644
--- a/package.json
+++ b/package.json
@@ -9,12 +9,13 @@
   "devDependencies": {
     "@types/chai": "^3.4.34",
     "@types/glob": "^5.0.35",
-    "@types/jsdom": "^11.0.1",
+    "@types/jsdom": "11.0.1",
     "@types/mocha": "^2.2.33",
     "@types/node": "6.0.108",
     "browserify": "^13.3.0",
     "chai": "3.5.0",
     "concurrently": "^3.5.1",
+    "coveralls": "^3.0.1",
     "express": "4.13.4",
     "express-ws": "2.0.0-rc.1",
     "fs-extra": "^1.0.0",
@@ -22,18 +23,17 @@
     "gulp": "3.9.1",
     "gulp-cli": "^1.2.2",
     "gulp-concat": "^2.6.1",
-    "gulp-coveralls": "^0.1.4",
-    "gulp-istanbul": "^1.1.1",
     "gulp-mocha": "^3.0.1",
     "gulp-sourcemaps": "1.9.1",
     "gulp-typescript": "^3.1.3",
     "gulp-util": "3.0.8",
     "jsdoc": "3.4.3",
-    "jsdom": "^11.1.0",
+    "jsdom": "^11.11.0",
     "merge-stream": "^1.0.1",
     "node-pty": "^0.7.2",
     "nodemon": "1.10.2",
     "npm-run-all": "^4.1.2",
+    "nyc": "^11.8.0",
     "sorcery": "^0.10.0",
     "tslint": "^5.9.1",
     "tslint-consistent-codestyle": "^1.13.0",
@@ -49,13 +49,16 @@
     "start-zmodem": "node demo/zmodem/app",
     "lint": "tslint 'src/**/*.ts'",
     "test": "npm-run-all mocha lint",
+    "test-debug": "node --inspect-brk node_modules/.bin/gulp test",
+    "test-suite": "gulp mocha-suite --test",
+    "test-coverage": "nyc -x gulpfile.js -x '**/*test*' npm run mocha",
     "mocha": "gulp test",
     "build:docs": "jsdoc -c jsdoc.json",
     "tsc": "tsc",
     "prebuild": "concurrently --kill-others-on-fail --names \"lib,attach,fit,fullscreen,search,terminado,webLinks,winptyCompat,zmodem,css\" \"tsc\" \"tsc -p ./src/addons/attach\" \"tsc -p ./src/addons/fit\" \"tsc -p ./src/addons/fullscreen\" \"tsc -p ./src/addons/search\" \"tsc -p ./src/addons/terminado\" \"tsc -p ./src/addons/webLinks\" \"tsc -p ./src/addons/winptyCompat\" \"tsc -p ./src/addons/zmodem\" \"gulp css\"",
     "build": "gulp build",
     "prepublish": "npm run build",
-    "coveralls": "gulp coveralls",
+    "coveralls": "nyc report --reporter=text-lcov | coveralls",
     "webpack": "gulp webpack",
     "watch": "concurrently --kill-others-on-fail --names \"lib,attach,fit,fullscreen,search,terminado,webLinks,winptyCompat,zmodem,css\" \"tsc -w\" \"tsc -w -p ./src/addons/attach\" \"tsc -w -p ./src/addons/fit\" \"tsc -w -p ./src/addons/fullscreen\" \"tsc -w -p ./src/addons/search\" \"tsc -w -p ./src/addons/terminado\" \"tsc -w -p ./src/addons/webLinks\" \"tsc -w -p ./src/addons/winptyCompat\" \"tsc -w -p ./src/addons/zmodem\" \"gulp watch-css\""
   }