diff --git a/IPython/core/interactiveshell.py b/IPython/core/interactiveshell.py
index f61456d..c9177b8 100644
--- a/IPython/core/interactiveshell.py
+++ b/IPython/core/interactiveshell.py
@@ -2533,7 +2533,8 @@ class InteractiveShell(SingletonConfigurable):
             except:
                 if kw['raise_exceptions']:
                     raise
-                self.showtraceback()
+                # tb offset is 2 because we wrap execfile
+                self.showtraceback(tb_offset=2)
 
     def safe_execfile_ipy(self, fname):
         """Like safe_execfile, but for .ipy or .ipynb files with IPython syntax.
diff --git a/IPython/core/tests/test_run.py b/IPython/core/tests/test_run.py
index 2c4e098..877c1a7 100644
--- a/IPython/core/tests/test_run.py
+++ b/IPython/core/tests/test_run.py
@@ -28,6 +28,7 @@ from nose import SkipTest
 from IPython.testing import decorators as dec
 from IPython.testing import tools as tt
 from IPython.utils import py3compat
+from IPython.utils.io import capture_output
 from IPython.utils.tempdir import TemporaryDirectory
 from IPython.core import debugger
 
@@ -474,3 +475,40 @@ def test_run__name__():
         
         _ip.magic('run -n {}'.format(path))
         nt.assert_equal(_ip.user_ns.pop('q'), 'foo')
+
+def test_run_tb():
+    """Test traceback offset in %run"""
+    with TemporaryDirectory() as td:
+        path = pjoin(td, 'foo.py')
+        with open(path, 'w') as f:
+            f.write('\n'.join([
+                "def foo():",
+                "    return bar()",
+                "def bar():",
+                "    raise RuntimeError('hello!')",
+                "foo()",
+            ]))
+        with capture_output() as io:
+            _ip.magic('run {}'.format(path))
+        out = io.stdout
+        nt.assert_not_in("execfile", out)
+        nt.assert_in("RuntimeError", out)
+        nt.assert_equal(out.count("---->"), 3)
+
+def test_script_tb():
+    """Test traceback offset in `ipython script.py`"""
+    with TemporaryDirectory() as td:
+        path = pjoin(td, 'foo.py')
+        with open(path, 'w') as f:
+            f.write('\n'.join([
+                "def foo():",
+                "    return bar()",
+                "def bar():",
+                "    raise RuntimeError('hello!')",
+                "foo()",
+            ]))
+        out, err = tt.ipexec(path)
+        nt.assert_not_in("execfile", out)
+        nt.assert_in("RuntimeError", out)
+        nt.assert_equal(out.count("---->"), 3)
+
diff --git a/IPython/utils/py3compat.py b/IPython/utils/py3compat.py
index 822dad3..d41a975 100644
--- a/IPython/utils/py3compat.py
+++ b/IPython/utils/py3compat.py
@@ -181,9 +181,6 @@ else:
     def MethodType(func, instance):
         return types.MethodType(func, instance, type(instance))
     
-    # don't override system execfile on 2.x:
-    execfile = execfile
-    
     def doctest_refactor_print(func_or_str):
         return func_or_str