diff --git a/CHANGELOG.md b/CHANGELOG.md
index dd54893..0e1994b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -76,6 +76,15 @@ and this project adheres to [Semantic Versioning](http://semver.org/).
   two Pester versions were installed side by side. When no Pester is loaded,
   the newest installed version (5.0.0 minimum) is imported as before, and a
   loaded Pester older than 5.0.0 now produces a clear error.
+- [**#138**](https://github.com/psake/PowerShellBuild/issues/138)
+  `Test-PSBuildPester` now reports real code coverage percentages and compares
+  them against `CodeCoverageThreshold` correctly. Each percentage was passed
+  through `[Math]::Truncate`, which collapses any fraction to zero, so the
+  coverage report always printed `0.00%` (or `100.00%`) and every threshold
+  above zero failed the build unless coverage was exactly 100%. Consumers who
+  set `$PSBPreference.Test.CodeCoverage.Threshold` could not use coverage
+  gating at all. The comparison is now strictly more permissive than before,
+  so a build that passed with a coverage threshold set still passes.
 
 ## [0.8.2] 2026-07-08
 
diff --git a/PowerShellBuild/Public/Test-PSBuildPester.ps1 b/PowerShellBuild/Public/Test-PSBuildPester.ps1
index 156d837..5a3b293 100644
--- a/PowerShellBuild/Public/Test-PSBuildPester.ps1
+++ b/PowerShellBuild/Public/Test-PSBuildPester.ps1
@@ -124,7 +124,12 @@ function Test-PSBuildPester {
                 [xml]$testCoverage = Get-Content $CodeCoverageOutputFile
                 $ccReport = $testCoverage.report.counter.ForEach({
                         $total = [int]$_.missed + [int]$_.covered
-                        $percent = [Math]::Truncate([int]$_.covered / $total)
+                        # Keep the ratio as a fraction between 0 and 1. [Math]::Truncate collapsed
+                        # every partial result to 0, which both printed 0.00% and failed the
+                        # CodeCoverageThreshold comparison below for any coverage under 100%.
+                        # The value is deliberately not rounded: rounding 0.7996 up to 0.80 would
+                        # pass a 0.80 threshold that the real coverage does not meet.
+                        $percent = [int]$_.covered / $total
                         [PSCustomObject]@{
                             name    = $textInfo.ToTitleCase($_.Type.ToLower())
                             percent = $percent
diff --git a/tests/Test-PSBuildPester.tests.ps1 b/tests/Test-PSBuildPester.tests.ps1
index e3cc9f7..43a3c8a 100644
--- a/tests/Test-PSBuildPester.tests.ps1
+++ b/tests/Test-PSBuildPester.tests.ps1
@@ -61,8 +61,12 @@ Describe 'Test-PSBuildPester' {
 
                 $threw = $false
                 $errorMessage = $null
+                # Capture the command's output rather than letting it fall through to the job's
+                # output stream, where the coverage report lines would be interleaved with the
+                # result object below.
+                $commandOutput = @()
                 try {
-                    Test-PSBuildPester @testPSBuildPesterParameters
+                    $commandOutput = @(Test-PSBuildPester @testPSBuildPesterParameters)
                 } catch {
                     $threw = $true
                     $errorMessage = $_.Exception.Message
@@ -71,6 +75,7 @@ Describe 'Test-PSBuildPester' {
                 [PSCustomObject]@{
                     Threw                = $threw
                     ErrorMessage         = $errorMessage
+                    Output               = $commandOutput
                     LoadedPesterVersions = @((Get-Module -Name 'Pester').Version.ToString())
                 }
             } -ArgumentList $InnerPesterVersion, $script:builtModulePath, $Path, $AdditionalParameters
@@ -220,6 +225,39 @@ Describe 'Coverage target' {
             [xml]$coverageReport = Get-Content -Path $coverageOutputPath -Raw
             $coverageReport.report | Should -Not -BeNullOrEmpty
         }
+
+        # The coverage scenario exercises only Get-Widget while measuring both public fixture
+        # functions, so measured coverage is always partial: comfortably above 1% and well
+        # below 99%. Asserting from both sides pins the reported value to a fraction between
+        # 0 and 1 -- a truncated 0 fails the first test, and a 0-to-100 scale fails the second.
+        It 'passes when measured coverage is above the code coverage threshold' {
+            # Regression: #138
+            $coverageOutputPath = Join-Path -Path $script:outputPath -ChildPath "coverage-above-threshold-$script:innerVersion.xml"
+            $additionalParameters = @{
+                CodeCoverage           = $true
+                CodeCoverageFiles      = @(Join-Path -Path $script:fixturePath -ChildPath 'Public/*.ps1')
+                CodeCoverageOutputFile = $coverageOutputPath
+                CodeCoverageThreshold  = 0.01
+            }
+            $result = Invoke-TestPSBuildPesterJob -InnerPesterVersion $script:innerVersion -Path $script:coveragePath -AdditionalParameters $additionalParameters
+
+            $result.Threw | Should -BeFalse
+        }
+
+        It 'fails when measured coverage is below the code coverage threshold' {
+            # Regression: #138
+            $coverageOutputPath = Join-Path -Path $script:outputPath -ChildPath "coverage-below-threshold-$script:innerVersion.xml"
+            $additionalParameters = @{
+                CodeCoverage           = $true
+                CodeCoverageFiles      = @(Join-Path -Path $script:fixturePath -ChildPath 'Public/*.ps1')
+                CodeCoverageOutputFile = $coverageOutputPath
+                CodeCoverageThreshold  = 0.99
+            }
+            $result = Invoke-TestPSBuildPesterJob -InnerPesterVersion $script:innerVersion -Path $script:coveragePath -AdditionalParameters $additionalParameters
+
+            $result.Threw | Should -BeTrue
+            $result.ErrorMessage | Should -Match 'less than the threshold'
+        }
     }
 
     # BeforeDiscovery variables are not visible during the run phase, so the discovered version