diff --git a/CODE_COVERAGE.md b/CODE_COVERAGE.md
new file mode 100644
index 0000000..84509a2
--- /dev/null
+++ b/CODE_COVERAGE.md
@@ -0,0 +1,7 @@
+# Code Coverage Report generation
+
+To generate the code coverage report, execute the following command:
+> mvn clean verify
+
+This will generate code coverage report in target folder. In order to view the same, open the following file in your browser.
+> target/site/cobertura/index.html
diff --git a/pom.xml b/pom.xml
index 7f254ac..fd7fb5c 100644
--- a/pom.xml
+++ b/pom.xml
@@ -17,6 +17,7 @@
 		<org.hsqldb.version>2.3.2</org.hsqldb.version>
 		<commons-dbcp.version>1.4</commons-dbcp.version>
 		<junit.version>4.11</junit.version>
+		<powermockito.version>1.6.2</powermockito.version>
 		<org.eclipse.jetty.jetty-maven-plugin.version>9.1.1.v20140108</org.eclipse.jetty.jetty-maven-plugin.version>
 	</properties>
 
@@ -41,6 +42,33 @@
 
 	<build>
 		<plugins>
+			<plugin>
+				<groupId>org.codehaus.mojo</groupId>
+				<artifactId>cobertura-maven-plugin</artifactId>
+				<version>2.6</version>
+				<configuration>
+					<check>
+						true
+					</check>
+					<formats>
+						<format>html</format>
+						<format>xml</format>
+					</formats>
+					<outputDirectory>${project.build.directory}/site/cobertura</outputDirectory>
+					<instrumentation>
+						<ignoreTrivial>true</ignoreTrivial>
+					</instrumentation>
+				</configuration>
+				<executions>
+					<execution>
+						<phase>package</phase>
+						<goals>
+							<goal>cobertura</goal>
+						</goals>
+					</execution>
+				</executions>
+			</plugin>
+
 			<plugin>
 				<groupId>org.apache.maven.plugins</groupId>
 				<artifactId>maven-compiler-plugin</artifactId>
@@ -184,6 +212,20 @@
     		<version>${junit.version}</version>
     		<scope>test</scope>
     	</dependency>
+
+		  <dependency>
+        <groupId>org.powermock</groupId>
+        <artifactId>powermock-module-junit4</artifactId>
+        <version>${powermockito.version}</version>
+        <scope>test</scope>
+		  </dependency>
+      <dependency>
+        <groupId>org.powermock</groupId>
+        <artifactId>powermock-api-mockito</artifactId>
+        <version>${powermockito.version}</version>
+        <scope>test</scope>
+      </dependency>
+
 	</dependencies>
 	
 </project>
diff --git a/src/test/java/net/dontdrinkandroot/example/angularrestspringsecurity/rest/TokenUtilsTest.java b/src/test/java/net/dontdrinkandroot/example/angularrestspringsecurity/rest/TokenUtilsTest.java
new file mode 100644
index 0000000..035a8c5
--- /dev/null
+++ b/src/test/java/net/dontdrinkandroot/example/angularrestspringsecurity/rest/TokenUtilsTest.java
@@ -0,0 +1,116 @@
+package net.dontdrinkandroot.example.angularrestspringsecurity.rest;
+
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.Mockito;
+import org.powermock.api.mockito.PowerMockito;
+import org.powermock.core.classloader.annotations.PrepareForTest;
+import org.powermock.modules.junit4.PowerMockRunner;
+import org.springframework.security.core.userdetails.UserDetails;
+
+import java.security.MessageDigest;
+import java.security.NoSuchAlgorithmException;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
+import static org.junit.Assert.fail;
+
+@RunWith(PowerMockRunner.class)
+@PrepareForTest({TokenUtils.class, MessageDigest.class})
+public class TokenUtilsTest {
+
+    private UserDetails userDetails;
+
+    private UserDetails secondUser;
+
+    @Before
+    public void setup() {
+        //mocking the system class to generate a constant time always
+        PowerMockito.mockStatic(System.class);
+        PowerMockito.when(System.currentTimeMillis()).thenReturn(1453210000000L);
+
+        //mocking the userdetails to retuen provided username and password
+        userDetails = Mockito.mock(UserDetails.class);
+        Mockito.when(userDetails.getUsername()).thenReturn("Tom");
+        Mockito.when(userDetails.getPassword()).thenReturn("pass");
+
+        secondUser = Mockito.mock(UserDetails.class);
+        Mockito.when(secondUser.getUsername()).thenReturn("Peter");
+        Mockito.when(secondUser.getPassword()).thenReturn("password");
+    }
+
+    @Test
+    public void testCreateToken() throws Exception {
+        //when
+        String token = TokenUtils.createToken(userDetails);
+
+        //then
+        assertEquals("Tom:1453213600000:3b9a243b4c39e7da5f3b8de187c25a36", token);
+    }
+
+    @Test
+    public void testComputeSignature() throws Exception {
+        //when
+        String signature = TokenUtils.computeSignature(userDetails, 1000);
+
+        //then
+        assertEquals("e3a0186e2fe21128fb94f9ee5c97ac4a", signature);
+    }
+
+    @Test
+    public void testComputeSignature_ForExceptionScenario() throws Exception {
+        //given
+        PowerMockito.mockStatic(MessageDigest.class);
+        PowerMockito.doThrow(new NoSuchAlgorithmException()).when(MessageDigest.class);
+        MessageDigest.getInstance("MD5");
+
+        try {
+            //when
+            TokenUtils.computeSignature(userDetails, 1000);
+
+            //then
+            fail("an IllegalArgument Exception  ust have already occurred");
+        } catch (IllegalStateException ex) {
+
+            //then
+            assertEquals("No MD5 algorithm available!", ex.getMessage());
+        }
+    }
+
+    @Test
+    public void testGetUserNameFromToken() throws Exception {
+        //when
+        String username = TokenUtils.getUserNameFromToken("Tom:1453273439335:68dcf777ddbaed7b1cecfb0034ec9155");
+
+        //then
+        assertEquals("Tom", username);
+    }
+
+    @Test
+    public void testGetUserNameFromToken_forNullToken() throws Exception {
+        //when
+        String username = TokenUtils.getUserNameFromToken(null);
+
+        //then
+        assertEquals(null, username);
+    }
+
+    @Test
+    public void testValidateToken() throws Exception {
+
+        assertTrue(TokenUtils.validateToken("Tom:1453273439335:68dcf777ddbaed7b1cecfb0034ec9155", userDetails));
+
+        assertFalse(TokenUtils.validateToken("Tom:1453273439335:68dcf777ddbaed7b1cecfb0034ec9155", secondUser));
+    }
+
+    @Test
+    public void testValidateToken_forExpiredOnes() throws Exception {
+        //given
+        String twoHourOneMilliOldToken = "Tom:1453209999999:68dcf777ddbaed7b1cecfb0034ec9155";
+
+        //then
+        assertFalse(TokenUtils.validateToken(twoHourOneMilliOldToken, userDetails));
+    }
+}