diff --git a/CHANGELOG.md b/CHANGELOG.md
index f431cd995e..7efdd66312 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -114,6 +114,8 @@ END_UNRELEASED_TEMPLATE
   ([#1975](https://github.com/bazel-contrib/rules_python/issues/1975))
 * (uv) automatically pass the `--project` parameter based on the source files.
   ([#3087](https://github.com/bazel-contrib/rules_python/issues/3087))
+* (coverage) handle nested coverage collection
+  ([#3823](https://github.com/bazel-contrib/rules_python/pull/3823))
 
 {#v0-0-0-added}
 ### Added
diff --git a/python/private/stage2_bootstrap_template.py b/python/private/stage2_bootstrap_template.py
index c4326bc026..a66b6428b0 100644
--- a/python/private/stage2_bootstrap_template.py
+++ b/python/private/stage2_bootstrap_template.py
@@ -406,7 +406,7 @@ def _maybe_collect_coverage(enable):
             yield
         finally:
             cov.stop()
-            lcov_path = os.path.join(coverage_dir, "pylcov.dat")
+            lcov_path = os.path.join(coverage_dir, "pylcov_{}.dat".format(unique_id))
             print_verbose_coverage("generating lcov from:", lcov_path)
             cov.lcov_report(
                 outfile=lcov_path,