diff --git a/IPython/extensions/autoreload.py b/IPython/extensions/autoreload.py
index dafae4c..306bb8b 100644
--- a/IPython/extensions/autoreload.py
+++ b/IPython/extensions/autoreload.py
@@ -269,7 +269,7 @@ def update_function(old, new):
 
 def update_class(old, new):
     """Replace stuff in the __dict__ of a class, and upgrade
-    method code objects"""
+    method code objects, and add new methods, if any"""
     for key in list(old.__dict__.keys()):
         old_obj = getattr(old, key)
         try:
@@ -291,6 +291,13 @@ def update_class(old, new):
         except (AttributeError, TypeError):
             pass # skip non-writable attributes
 
+    for key in list(new.__dict__.keys()):
+        if key not in list(old.__dict__.keys()):
+            try:
+                setattr(old, key, getattr(new, key))
+            except (AttributeError, TypeError):
+                pass # skip non-writable attributes
+
 
 def update_property(old, new):
     """Replace get/set/del functions of a property"""
diff --git a/IPython/extensions/tests/test_autoreload.py b/IPython/extensions/tests/test_autoreload.py
index 89c288b..a942c5e 100644
--- a/IPython/extensions/tests/test_autoreload.py
+++ b/IPython/extensions/tests/test_autoreload.py
@@ -151,6 +151,64 @@ class TestAutoreload(Fixture):
         with tt.AssertNotPrints(('[autoreload of %s failed:' % mod_name), channel='stderr'):
             self.shell.run_code("pass")  # trigger another reload
 
+    def test_reload_class_attributes(self):
+        self.shell.magic_autoreload("2")
+        mod_name, mod_fn = self.new_module(textwrap.dedent("""
+                                class MyClass:
+
+                                    def __init__(self, a=10):
+                                        self.a = a
+                                        self.b = 22 
+                                        # self.toto = 33
+
+                                    def square(self):
+                                        print('compute square')
+                                        return self.a*self.a
+                            """
+            )
+        )
+        self.shell.run_code("from %s import MyClass" % mod_name)
+        self.shell.run_code("first = MyClass(5)")
+        self.shell.run_code("first.square()")
+        with nt.assert_raises(AttributeError):
+            self.shell.run_code("first.cube()")
+        with nt.assert_raises(AttributeError):
+            self.shell.run_code("first.power(5)")
+        self.shell.run_code("first.b")
+        with nt.assert_raises(AttributeError):
+            self.shell.run_code("first.toto")
+
+        # remove square, add power
+
+        self.write_file(
+            mod_fn,
+            textwrap.dedent(
+                """
+                            class MyClass:
+
+                                def __init__(self, a=10):
+                                    self.a = a
+                                    self.b = 11
+
+                                def power(self, p):
+                                    print('compute power '+str(p))
+                                    return self.a**p
+                            """
+            ),
+        )
+
+        self.shell.run_code("second = MyClass(5)")
+
+        for object_name in {'first', 'second'}:
+            self.shell.run_code("{object_name}.power(5)".format(object_name=object_name))
+            with nt.assert_raises(AttributeError):
+                self.shell.run_code("{object_name}.cube()".format(object_name=object_name))
+            with nt.assert_raises(AttributeError):
+                self.shell.run_code("{object_name}.square()".format(object_name=object_name))
+            self.shell.run_code("{object_name}.b".format(object_name=object_name))
+            self.shell.run_code("{object_name}.a".format(object_name=object_name))
+            with nt.assert_raises(AttributeError):
+                self.shell.run_code("{object_name}.toto".format(object_name=object_name))
 
     def _check_smoketest(self, use_aimport=True):
         """
@@ -340,3 +398,7 @@ x = -99
 
     def test_smoketest_autoreload(self):
         self._check_smoketest(use_aimport=False)
+
+
+
+
diff --git a/IPython/testing/iptest.py b/IPython/testing/iptest.py
index 633cb72..445e826 100644
--- a/IPython/testing/iptest.py
+++ b/IPython/testing/iptest.py
@@ -386,6 +386,12 @@ def run_iptest():
         monkeypatch_xunit()
 
     arg1 = sys.argv[1]
+    if arg1.startswith('IPython/'):
+        if arg1.endswith('.py'):
+            arg1 = arg1[:-3]
+        sys.argv[1] = arg1.replace('/', '.')
+    
+    arg1 = sys.argv[1]
     if arg1 in test_sections:
         section = test_sections[arg1]
         sys.argv[1:2] = section.includes
diff --git a/docs/source/whatsnew/pr/improve-autoreload.md b/docs/source/whatsnew/pr/improve-autoreload.md
new file mode 100644
index 0000000..7062299
--- /dev/null
+++ b/docs/source/whatsnew/pr/improve-autoreload.md
@@ -0,0 +1,30 @@
+magic `%autoreload 2` now captures new methods added to classes. Earlier, only methods existing as of the initial import were being tracked and updated.  
+
+This new feature helps dual environement development - Jupyter+IDE - where the code gradually moves from notebook cells to package files, as it gets structured.
+
+**Example**: An instance of the class `MyClass` will be able to access the method `cube()` after it is uncommented and the file `file1.py` saved on disk.
+
+````python
+# notebook
+
+from mymodule import MyClass
+first = MyClass(5)
+````
+
+````python
+# mymodule/file1.py
+
+class MyClass:
+
+    def __init__(self, a=10):
+        self.a = a
+
+    def square(self):
+        print('compute square')
+        return self.a*self.a
+
+    # def cube(self):
+    #     print('compute cube')
+    #     return self.a*self.a*self.a
+````
+