diff --git a/IPython/__init__.py b/IPython/__init__.py
index 778ff05..626fb67 100644
--- a/IPython/__init__.py
+++ b/IPython/__init__.py
@@ -81,5 +81,5 @@ def embed_kernel(module=None, local_ns=None, **kwargs):
         local_ns = caller_locals
     
     # Only import .zmq when we really need it
-    from .zmq.ipkernel import embed_kernel as real_embed_kernel
+    from .zmq.embed import embed_kernel as real_embed_kernel
     real_embed_kernel(module=module, local_ns=local_ns, **kwargs)
diff --git a/IPython/frontend/consoleapp.py b/IPython/frontend/consoleapp.py
index 3163c82..2079652 100644
--- a/IPython/frontend/consoleapp.py
+++ b/IPython/frontend/consoleapp.py
@@ -42,9 +42,9 @@ from IPython.utils.py3compat import str_to_bytes
 from IPython.utils.traitlets import (
     Dict, List, Unicode, CUnicode, Int, CBool, Any, CaselessStrEnum
 )
-from IPython.zmq.ipkernel import (
-    flags as ipkernel_flags,
-    aliases as ipkernel_aliases,
+from IPython.zmq.kernelapp import (
+    kernel_flags,
+    kernel_aliases,
     IPKernelApp
 )
 from IPython.zmq.session import Session, default_secure
@@ -65,7 +65,7 @@ from IPython.utils.localinterfaces import LOCALHOST, LOCAL_IPS
 # Aliases and Flags
 #-----------------------------------------------------------------------------
 
-flags = dict(ipkernel_flags)
+flags = dict(kernel_flags)
 
 # the flags that are specific to the frontend
 # these must be scrubbed before being passed to the kernel,
@@ -85,7 +85,7 @@ app_flags.update(boolean_flag(
 ))
 flags.update(app_flags)
 
-aliases = dict(ipkernel_aliases)
+aliases = dict(kernel_aliases)
 
 # also scrub aliases from the frontend
 app_aliases = dict(
diff --git a/IPython/frontend/html/notebook/notebookapp.py b/IPython/frontend/html/notebook/notebookapp.py
index 0b68a1f..1868103 100644
--- a/IPython/frontend/html/notebook/notebookapp.py
+++ b/IPython/frontend/html/notebook/notebookapp.py
@@ -63,9 +63,9 @@ from IPython.core.profiledir import ProfileDir
 from IPython.frontend.consoleapp import IPythonConsoleApp
 from IPython.zmq.session import Session, default_secure
 from IPython.zmq.zmqshell import ZMQInteractiveShell
-from IPython.zmq.ipkernel import (
-    flags as ipkernel_flags,
-    aliases as ipkernel_aliases,
+from IPython.zmq.kernelapp import (
+    kernel_flags,
+    kernel_aliases,
     IPKernelApp
 )
 from IPython.utils.importstring import import_item
@@ -195,7 +195,7 @@ class NotebookWebApplication(web.Application):
 # Aliases and Flags
 #-----------------------------------------------------------------------------
 
-flags = dict(ipkernel_flags)
+flags = dict(kernel_flags)
 flags['no-browser']=(
     {'NotebookApp' : {'open_browser' : False}},
     "Don't open the notebook in a browser after startup."
@@ -234,7 +234,7 @@ flags.update(boolean_flag('script', 'FileNotebookManager.save_script',
 # or it will raise an error on unrecognized flags
 notebook_flags = ['no-browser', 'no-mathjax', 'read-only', 'script', 'no-script']
 
-aliases = dict(ipkernel_aliases)
+aliases = dict(kernel_aliases)
 
 aliases.update({
     'ip': 'NotebookApp.ip',
diff --git a/IPython/frontend/qt/console/qtconsoleapp.py b/IPython/frontend/qt/console/qtconsoleapp.py
index 4dbf106..f0b711b 100644
--- a/IPython/frontend/qt/console/qtconsoleapp.py
+++ b/IPython/frontend/qt/console/qtconsoleapp.py
@@ -71,7 +71,7 @@ from IPython.utils.py3compat import str_to_bytes
 from IPython.utils.traitlets import (
     Dict, List, Unicode, Integer, CaselessStrEnum, CBool, Any
 )
-from IPython.zmq.ipkernel import IPKernelApp
+from IPython.zmq.kernelapp import IPKernelApp
 from IPython.zmq.session import Session, default_secure
 from IPython.zmq.zmqshell import ZMQInteractiveShell
 
diff --git a/IPython/frontend/terminal/console/app.py b/IPython/frontend/terminal/console/app.py
index 27f1a55..f6ec15b 100644
--- a/IPython/frontend/terminal/console/app.py
+++ b/IPython/frontend/terminal/console/app.py
@@ -24,7 +24,7 @@ from IPython.utils.traitlets import (
 )
 from IPython.utils.warn import warn,error
 
-from IPython.zmq.ipkernel import IPKernelApp
+from IPython.zmq.kernelapp import IPKernelApp
 from IPython.zmq.session import Session, default_secure
 from IPython.zmq.zmqshell import ZMQInteractiveShell
 from IPython.frontend.consoleapp import (
diff --git a/IPython/frontend/terminal/ipapp.py b/IPython/frontend/terminal/ipapp.py
index b2f540a..dc09ef5 100755
--- a/IPython/frontend/terminal/ipapp.py
+++ b/IPython/frontend/terminal/ipapp.py
@@ -233,7 +233,7 @@ class TerminalIPythonApp(BaseIPythonApplication, InteractiveShellApp):
         profile = ("IPython.core.profileapp.ProfileApp",
             "Create and manage IPython profiles."
         ),
-        kernel = ("IPython.zmq.ipkernel.IPKernelApp",
+        kernel = ("IPython.zmq.kernelapp.IPKernelApp",
             "Start a kernel without an attached frontend."
         ),
         console=('IPython.frontend.terminal.console.app.ZMQTerminalIPythonApp',
diff --git a/IPython/kernel/connect.py b/IPython/kernel/connect.py
index 865bfd2..7f3045c 100644
--- a/IPython/kernel/connect.py
+++ b/IPython/kernel/connect.py
@@ -127,7 +127,7 @@ def get_connection_file(app=None):
         If unspecified, the currently running app will be used
     """
     if app is None:
-        from IPython.zmq.ipkernel import IPKernelApp
+        from IPython.zmq.kernelapp import IPKernelApp
         if not IPKernelApp.initialized():
             raise RuntimeError("app not specified, and not in a running Kernel")
 
diff --git a/IPython/parallel/__init__.py b/IPython/parallel/__init__.py
index ac6161f..0a58442 100644
--- a/IPython/parallel/__init__.py
+++ b/IPython/parallel/__init__.py
@@ -50,7 +50,7 @@ def bind_kernel(**kwargs):
     
     This function returns immediately.
     """
-    from IPython.zmq.ipkernel import IPKernelApp
+    from IPython.zmq.kernelapp import IPKernelApp
     from IPython.parallel.apps.ipengineapp import IPEngineApp
     
     # first check for IPKernelApp, in which case this should be a no-op
diff --git a/IPython/parallel/apps/ipengineapp.py b/IPython/parallel/apps/ipengineapp.py
index 2fd16a3..5cf6458 100755
--- a/IPython/parallel/apps/ipengineapp.py
+++ b/IPython/parallel/apps/ipengineapp.py
@@ -37,7 +37,8 @@ from IPython.parallel.apps.baseapp import (
     catch_config_error,
 )
 from IPython.zmq.log import EnginePUBHandler
-from IPython.zmq.ipkernel import Kernel, IPKernelApp
+from IPython.zmq.ipkernel import Kernel
+from IPython.zmq.kernelapp import IPKernelApp
 from IPython.zmq.session import (
     Session, session_aliases, session_flags
 )
diff --git a/IPython/parallel/engine/engine.py b/IPython/parallel/engine/engine.py
index f15878d..295cfcb 100644
--- a/IPython/parallel/engine/engine.py
+++ b/IPython/parallel/engine/engine.py
@@ -35,7 +35,8 @@ from IPython.parallel.factory import RegistrationFactory
 from IPython.parallel.util import disambiguate_url
 
 from IPython.zmq.session import Message
-from IPython.zmq.ipkernel import Kernel, IPKernelApp
+from IPython.zmq.ipkernel import Kernel
+from IPython.zmq.kernelapp import IPKernelApp
 
 class EngineFactory(RegistrationFactory):
     """IPython engine"""
diff --git a/IPython/zmq/embed.py b/IPython/zmq/embed.py
new file mode 100644
index 0000000..0a3e50a
--- /dev/null
+++ b/IPython/zmq/embed.py
@@ -0,0 +1,57 @@
+"""Simple function for embedding an IPython kernel
+"""
+#-----------------------------------------------------------------------------
+# Imports
+#-----------------------------------------------------------------------------
+
+import sys
+
+from IPython.utils.frame import extract_module_locals
+
+from kernelapp import IPKernelApp
+
+#-----------------------------------------------------------------------------
+# Code
+#-----------------------------------------------------------------------------
+
+def embed_kernel(module=None, local_ns=None, **kwargs):
+    """Embed and start an IPython kernel in a given scope.
+    
+    Parameters
+    ----------
+    module : ModuleType, optional
+        The module to load into IPython globals (default: caller)
+    local_ns : dict, optional
+        The namespace to load into IPython user namespace (default: caller)
+    
+    kwargs : various, optional
+        Further keyword args are relayed to the KernelApp constructor,
+        allowing configuration of the Kernel.  Will only have an effect
+        on the first embed_kernel call for a given process.
+    
+    """
+    # get the app if it exists, or set it up if it doesn't
+    if IPKernelApp.initialized():
+        app = IPKernelApp.instance()
+    else:
+        app = IPKernelApp.instance(**kwargs)
+        app.initialize([])
+        # Undo unnecessary sys module mangling from init_sys_modules.
+        # This would not be necessary if we could prevent it
+        # in the first place by using a different InteractiveShell
+        # subclass, as in the regular embed case.
+        main = app.kernel.shell._orig_sys_modules_main_mod
+        if main is not None:
+            sys.modules[app.kernel.shell._orig_sys_modules_main_name] = main
+
+    # load the calling scope if not given
+    (caller_module, caller_locals) = extract_module_locals(1)
+    if module is None:
+        module = caller_module
+    if local_ns is None:
+        local_ns = caller_locals
+    
+    app.kernel.user_module = module
+    app.kernel.user_ns = local_ns
+    app.shell.set_completer_frame()
+    app.start()
diff --git a/IPython/zmq/ipkernel.py b/IPython/zmq/ipkernel.py
index e422c81..afc24cb 100755
--- a/IPython/zmq/ipkernel.py
+++ b/IPython/zmq/ipkernel.py
@@ -17,7 +17,6 @@ from __future__ import print_function
 
 # Standard library imports
 import __builtin__
-import atexit
 import sys
 import time
 import traceback
@@ -36,25 +35,18 @@ from zmq.eventloop.zmqstream import ZMQStream
 
 # Local imports
 from IPython.config.configurable import Configurable
-from IPython.config.application import boolean_flag, catch_config_error
-from IPython.core.application import ProfileDir
 from IPython.core.error import StdinNotImplementedError
 from IPython.core import release
-from IPython.core.shellapp import (
-    InteractiveShellApp, shell_flags, shell_aliases
-)
 from IPython.utils import io
 from IPython.utils import py3compat
-from IPython.utils.frame import extract_module_locals
 from IPython.utils.jsonutil import json_clean
 from IPython.utils.traitlets import (
     Any, Instance, Float, Dict, CaselessStrEnum, List, Set, Integer, Unicode,
     Type
 )
 
-from kernelapp import KernelApp, kernel_flags, kernel_aliases
 from serialize import serialize_object, unpack_apply_message
-from session import Session, Message
+from session import Session
 from zmqshell import ZMQInteractiveShell
 
 
@@ -785,139 +777,3 @@ class Kernel(Configurable):
             self.log.debug("%s", self._shutdown_message)
         [ s.flush(zmq.POLLOUT) for s in self.shell_streams ]
 
-#-----------------------------------------------------------------------------
-# Aliases and Flags for the IPKernelApp
-#-----------------------------------------------------------------------------
-
-flags = dict(kernel_flags)
-flags.update(shell_flags)
-
-addflag = lambda *args: flags.update(boolean_flag(*args))
-
-flags['pylab'] = (
-    {'IPKernelApp' : {'pylab' : 'auto'}},
-    """Pre-load matplotlib and numpy for interactive use with
-    the default matplotlib backend."""
-)
-
-aliases = dict(kernel_aliases)
-aliases.update(shell_aliases)
-
-#-----------------------------------------------------------------------------
-# The IPKernelApp class
-#-----------------------------------------------------------------------------
-
-class IPKernelApp(KernelApp, InteractiveShellApp):
-    name = 'ipkernel'
-
-    aliases = Dict(aliases)
-    flags = Dict(flags)
-    classes = [Kernel, ZMQInteractiveShell, ProfileDir, Session]
-
-    @catch_config_error
-    def initialize(self, argv=None):
-        super(IPKernelApp, self).initialize(argv)
-        self.init_path()
-        self.init_shell()
-        self.init_gui_pylab()
-        self.init_extensions()
-        self.init_code()
-
-    def init_kernel(self):
-        
-        shell_stream = ZMQStream(self.shell_socket)
-
-        kernel = Kernel(config=self.config, session=self.session,
-                                shell_streams=[shell_stream],
-                                iopub_socket=self.iopub_socket,
-                                stdin_socket=self.stdin_socket,
-                                log=self.log,
-                                profile_dir=self.profile_dir,
-        )
-        self.kernel = kernel
-        kernel.record_ports(self.ports)
-        shell = kernel.shell
-
-    def init_gui_pylab(self):
-        """Enable GUI event loop integration, taking pylab into account."""
-
-        # Provide a wrapper for :meth:`InteractiveShellApp.init_gui_pylab`
-        # to ensure that any exception is printed straight to stderr.
-        # Normally _showtraceback associates the reply with an execution,
-        # which means frontends will never draw it, as this exception
-        # is not associated with any execute request.
-
-        shell = self.shell
-        _showtraceback = shell._showtraceback
-        try:
-            # replace pyerr-sending traceback with stderr
-            def print_tb(etype, evalue, stb):
-                print ("GUI event loop or pylab initialization failed",
-                       file=io.stderr)
-                print (shell.InteractiveTB.stb2text(stb), file=io.stderr)
-            shell._showtraceback = print_tb
-            InteractiveShellApp.init_gui_pylab(self)
-        finally:
-            shell._showtraceback = _showtraceback
-
-    def init_shell(self):
-        self.shell = self.kernel.shell
-        self.shell.configurables.append(self)
-
-
-#-----------------------------------------------------------------------------
-# Kernel main and launch functions
-#-----------------------------------------------------------------------------
-
-
-def embed_kernel(module=None, local_ns=None, **kwargs):
-    """Embed and start an IPython kernel in a given scope.
-    
-    Parameters
-    ----------
-    module : ModuleType, optional
-        The module to load into IPython globals (default: caller)
-    local_ns : dict, optional
-        The namespace to load into IPython user namespace (default: caller)
-    
-    kwargs : various, optional
-        Further keyword args are relayed to the KernelApp constructor,
-        allowing configuration of the Kernel.  Will only have an effect
-        on the first embed_kernel call for a given process.
-    
-    """
-    # get the app if it exists, or set it up if it doesn't
-    if IPKernelApp.initialized():
-        app = IPKernelApp.instance()
-    else:
-        app = IPKernelApp.instance(**kwargs)
-        app.initialize([])
-        # Undo unnecessary sys module mangling from init_sys_modules.
-        # This would not be necessary if we could prevent it
-        # in the first place by using a different InteractiveShell
-        # subclass, as in the regular embed case.
-        main = app.kernel.shell._orig_sys_modules_main_mod
-        if main is not None:
-            sys.modules[app.kernel.shell._orig_sys_modules_main_name] = main
-
-    # load the calling scope if not given
-    (caller_module, caller_locals) = extract_module_locals(1)
-    if module is None:
-        module = caller_module
-    if local_ns is None:
-        local_ns = caller_locals
-    
-    app.kernel.user_module = module
-    app.kernel.user_ns = local_ns
-    app.shell.set_completer_frame()
-    app.start()
-
-def main():
-    """Run an IPKernel as an application"""
-    app = IPKernelApp.instance()
-    app.initialize()
-    app.start()
-
-
-if __name__ == '__main__':
-    main()
diff --git a/IPython/zmq/kernelapp.py b/IPython/zmq/kernelapp.py
index 2789540..f1deb7b 100644
--- a/IPython/zmq/kernelapp.py
+++ b/IPython/zmq/kernelapp.py
@@ -15,6 +15,8 @@ Authors
 # Imports
 #-----------------------------------------------------------------------------
 
+from __future__ import print_function
+
 # Standard library imports
 import atexit
 import json
@@ -25,12 +27,17 @@ import signal
 # System library imports
 import zmq
 from zmq.eventloop import ioloop
+from zmq.eventloop.zmqstream import ZMQStream
 
 # IPython imports
 from IPython.core.ultratb import FormattedTB
 from IPython.core.application import (
     BaseIPythonApplication, base_flags, base_aliases, catch_config_error
 )
+from IPython.core.profiledir import ProfileDir
+from IPython.core.shellapp import (
+    InteractiveShellApp, shell_flags, shell_aliases
+)
 from IPython.utils import io
 from IPython.utils.localinterfaces import LOCALHOST
 from IPython.utils.path import filefind
@@ -41,13 +48,15 @@ from IPython.utils.traitlets import (
 )
 from IPython.utils.importstring import import_item
 from IPython.kernel import write_connection_file
+
 # local imports
-from IPython.zmq.heartbeat import Heartbeat
-from IPython.zmq.parentpoller import ParentPollerUnix, ParentPollerWindows
-from IPython.zmq.session import (
+from heartbeat import Heartbeat
+from ipkernel import Kernel
+from parentpoller import ParentPollerUnix, ParentPollerWindows
+from session import (
     Session, session_flags, session_aliases, default_secure,
 )
-
+from zmqshell import ZMQInteractiveShell
 
 #-----------------------------------------------------------------------------
 # Flags and Aliases
@@ -55,14 +64,14 @@ from IPython.zmq.session import (
 
 kernel_aliases = dict(base_aliases)
 kernel_aliases.update({
-    'ip' : 'KernelApp.ip',
-    'hb' : 'KernelApp.hb_port',
-    'shell' : 'KernelApp.shell_port',
-    'iopub' : 'KernelApp.iopub_port',
-    'stdin' : 'KernelApp.stdin_port',
-    'f' : 'KernelApp.connection_file',
-    'parent': 'KernelApp.parent',
-    'transport': 'KernelApp.transport',
+    'ip' : 'IPKernelApp.ip',
+    'hb' : 'IPKernelApp.hb_port',
+    'shell' : 'IPKernelApp.shell_port',
+    'iopub' : 'IPKernelApp.iopub_port',
+    'stdin' : 'IPKernelApp.stdin_port',
+    'f' : 'IPKernelApp.connection_file',
+    'parent': 'IPKernelApp.parent',
+    'transport': 'IPKernelApp.transport',
 })
 if sys.platform.startswith('win'):
     kernel_aliases['interrupt'] = 'KernelApp.interrupt'
@@ -70,28 +79,34 @@ if sys.platform.startswith('win'):
 kernel_flags = dict(base_flags)
 kernel_flags.update({
     'no-stdout' : (
-            {'KernelApp' : {'no_stdout' : True}},
+            {'IPKernelApp' : {'no_stdout' : True}},
             "redirect stdout to the null device"),
     'no-stderr' : (
-            {'KernelApp' : {'no_stderr' : True}},
+            {'IPKernelApp' : {'no_stderr' : True}},
             "redirect stderr to the null device"),
+    'pylab' : (
+        {'IPKernelApp' : {'pylab' : 'auto'}},
+        """Pre-load matplotlib and numpy for interactive use with
+        the default matplotlib backend."""),
 })
 
+# inherit flags&aliases for any IPython shell apps
+kernel_aliases.update(shell_aliases)
+kernel_flags.update(shell_flags)
+
 # inherit flags&aliases for Sessions
 kernel_aliases.update(session_aliases)
 kernel_flags.update(session_flags)
 
-
-
 #-----------------------------------------------------------------------------
-# Application class for starting a Kernel
+# Application class for starting an IPython Kernel
 #-----------------------------------------------------------------------------
 
-class KernelApp(BaseIPythonApplication):
+class IPKernelApp(BaseIPythonApplication, InteractiveShellApp):
     name='ipkernel'
     aliases = Dict(kernel_aliases)
     flags = Dict(kernel_flags)
-    classes = [Session]
+    classes = [Kernel, ZMQInteractiveShell, ProfileDir, Session]
     # the kernel class, as an importstring
     kernel_class = DottedObjectName('IPython.zmq.ipkernel.Kernel')
     kernel = Any()
@@ -332,18 +347,47 @@ class KernelApp(BaseIPythonApplication):
 
     def init_kernel(self):
         """Create the Kernel object itself"""
-        kernel_factory = import_item(str(self.kernel_class))
-        self.kernel = kernel_factory(config=self.config, session=self.session,
-                                shell_socket=self.shell_socket,
+        shell_stream = ZMQStream(self.shell_socket)
+
+        kernel = Kernel(config=self.config, session=self.session,
+                                shell_streams=[shell_stream],
                                 iopub_socket=self.iopub_socket,
                                 stdin_socket=self.stdin_socket,
-                                log=self.log
+                                log=self.log,
+                                profile_dir=self.profile_dir,
         )
-        self.kernel.record_ports(self.ports)
+        kernel.record_ports(self.ports)
+        self.kernel = kernel
+
+    def init_gui_pylab(self):
+        """Enable GUI event loop integration, taking pylab into account."""
+
+        # Provide a wrapper for :meth:`InteractiveShellApp.init_gui_pylab`
+        # to ensure that any exception is printed straight to stderr.
+        # Normally _showtraceback associates the reply with an execution,
+        # which means frontends will never draw it, as this exception
+        # is not associated with any execute request.
+
+        shell = self.shell
+        _showtraceback = shell._showtraceback
+        try:
+            # replace pyerr-sending traceback with stderr
+            def print_tb(etype, evalue, stb):
+                print ("GUI event loop or pylab initialization failed",
+                       file=io.stderr)
+                print (shell.InteractiveTB.stb2text(stb), file=io.stderr)
+            shell._showtraceback = print_tb
+            InteractiveShellApp.init_gui_pylab(self)
+        finally:
+            shell._showtraceback = _showtraceback
+
+    def init_shell(self):
+        self.shell = self.kernel.shell
+        self.shell.configurables.append(self)
 
     @catch_config_error
     def initialize(self, argv=None):
-        super(KernelApp, self).initialize(argv)
+        super(IPKernelApp, self).initialize(argv)
         self.init_blackhole()
         self.init_connection_file()
         self.init_session()
@@ -356,6 +400,12 @@ class KernelApp(BaseIPythonApplication):
         self.init_io()
         self.init_signal()
         self.init_kernel()
+        # shell init steps
+        self.init_path()
+        self.init_shell()
+        self.init_gui_pylab()
+        self.init_extensions()
+        self.init_code()
         # flush stdout/stderr, so that anything written to these streams during
         # initialization do not get associated with the first execution request
         sys.stdout.flush()
@@ -370,3 +420,13 @@ class KernelApp(BaseIPythonApplication):
         except KeyboardInterrupt:
             pass
 
+
+def main():
+    """Run an IPKernel as an application"""
+    app = IPKernelApp.instance()
+    app.initialize()
+    app.start()
+
+
+if __name__ == '__main__':
+    main()
diff --git a/IPython/zmq/kernelmanager.py b/IPython/zmq/kernelmanager.py
index 9ec75c0..013482c 100644
--- a/IPython/zmq/kernelmanager.py
+++ b/IPython/zmq/kernelmanager.py
@@ -903,7 +903,7 @@ class KernelManager(Configurable):
             cmd = self.kernel_cmd
         else:
             cmd = make_ipkernel_cmd(
-                'from IPython.zmq.ipkernel import main; main()',
+                'from IPython.zmq.kernelapp import main; main()',
                 **kw
             )
         ns = dict(connection_file=self.connection_file)