diff --git a/src/calibre/__init__.py b/src/calibre/__init__.py
index 2ed2173d87..f17b909ea7 100644
--- a/src/calibre/__init__.py
+++ b/src/calibre/__init__.py
@@ -31,7 +31,7 @@ if False:
     # Prevent pyflakes from complaining
     winutil, winutilerror, __appname__, islinux, __version__
     fcntl, win32event, isfrozen, __author__
-    winerror, win32api, isbsd
+    winerror, win32api, isbsd, config_dir
 
 _mt_inited = False
 def _init_mimetypes():
@@ -699,69 +699,6 @@ if isosx:
         traceback.print_exc()
 
 def ipython(user_ns=None):
-    old_argv = sys.argv
-    sys.argv = ['ipython']
-    if user_ns is None:
-        user_ns = locals()
-    ipydir = os.path.join(config_dir, ('_' if iswindows else '.')+'ipython')
-    os.environ['IPYTHONDIR'] = ipydir
-    if not os.path.exists(ipydir):
-        os.makedirs(ipydir)
-    for x in ('', '.ini'):
-        rc = os.path.join(ipydir, 'ipythonrc'+x)
-        if not os.path.exists(rc):
-            open(rc, 'wb').write(' ')
-    UC = '''
-import IPython.ipapi
-ip = IPython.ipapi.get()
-
-# You probably want to uncomment this if you did %upgrade -nolegacy
-import ipy_defaults
-
-import os, re, sys
-
-def main():
-    # Handy tab-completers for %cd, %run, import etc.
-    # Try commenting this out if you have completion problems/slowness
-    import ipy_stock_completers
-
-    # uncomment if you want to get ipython -p sh behaviour
-    # without having to use command line switches
-
-    import ipy_profile_sh
-
-
-    # Configure your favourite editor?
-    # Good idea e.g. for %edit os.path.isfile
-
-    import ipy_editors
-
-    # Choose one of these:
-
-    #ipy_editors.scite()
-    #ipy_editors.scite('c:/opt/scite/scite.exe')
-    #ipy_editors.komodo()
-    #ipy_editors.idle()
-    # ... or many others, try 'ipy_editors??' after import to see them
-
-    # Or roll your own:
-    #ipy_editors.install_editor("c:/opt/jed +$line $file")
-
-    ipy_editors.kate()
-
-    o = ip.options
-    # An example on how to set options
-    #o.autocall = 1
-    o.system_verbose = 0
-    o.confirm_exit = 0
-
-main()
-    '''
-    uc = os.path.join(ipydir, 'ipy_user_conf.py')
-    if not os.path.exists(uc):
-        open(uc, 'wb').write(UC)
-    from IPython.Shell import IPShellEmbed
-    ipshell = IPShellEmbed(user_ns=user_ns)
-    ipshell()
-    sys.argv = old_argv
+    from calibre.utils.ipython import ipython
+    ipython(user_ns=user_ns)
 
diff --git a/src/calibre/constants.py b/src/calibre/constants.py
index 0b50c7d2ac..2170db4587 100644
--- a/src/calibre/constants.py
+++ b/src/calibre/constants.py
@@ -153,3 +153,12 @@ else:
         atexit.register(cleanup_cdir)
 # }}}
 
+def get_version():
+    '''Return version string that indicates if we are running in a dev env'''
+    dv = os.environ.get('CALIBRE_DEVELOP_FROM', None)
+    v = __version__
+    if getattr(sys, 'frozen', False) and dv and os.path.abspath(dv) in sys.path:
+        v += '*'
+    return v
+
+
diff --git a/src/calibre/gui2/init.py b/src/calibre/gui2/init.py
index cccf76e713..95e8c79382 100644
--- a/src/calibre/gui2/init.py
+++ b/src/calibre/gui2/init.py
@@ -5,14 +5,14 @@ __license__   = 'GPL v3'
 __copyright__ = '2010, Kovid Goyal <kovid@kovidgoyal.net>'
 __docformat__ = 'restructuredtext en'
 
-import functools, sys, os
+import functools
 
 from PyQt4.Qt import Qt, QStackedWidget, QMenu, \
         QSize, QSizePolicy, QStatusBar, QLabel, QFont
 
 from calibre.utils.config import prefs
-from calibre.constants import isosx, __appname__, preferred_encoding, \
-    __version__
+from calibre.constants import (isosx, __appname__, preferred_encoding,
+    get_version)
 from calibre.gui2 import config, is_widescreen, gprefs
 from calibre.gui2.library.views import BooksView, DeviceBooksView
 from calibre.gui2.widgets import Splitter
@@ -187,11 +187,7 @@ class StatusBar(QStatusBar): # {{{
         self.clearMessage()
 
     def get_version(self):
-        dv = os.environ.get('CALIBRE_DEVELOP_FROM', None)
-        v = __version__
-        if getattr(sys, 'frozen', False) and dv and os.path.abspath(dv) in sys.path:
-            v += '*'
-        return v
+        return get_version()
 
     def show_message(self, msg, timeout=0):
         self.showMessage(msg, timeout)
diff --git a/src/calibre/utils/ipython.py b/src/calibre/utils/ipython.py
new file mode 100644
index 0000000000..d53a74a5c2
--- /dev/null
+++ b/src/calibre/utils/ipython.py
@@ -0,0 +1,113 @@
+#!/usr/bin/env python
+# vim:fileencoding=UTF-8:ts=4:sw=4:sta:et:sts=4:ai
+from __future__ import (unicode_literals, division, absolute_import,
+                        print_function)
+
+__license__   = 'GPL v3'
+__copyright__ = '2012, Kovid Goyal <kovid@kovidgoyal.net>'
+__docformat__ = 'restructuredtext en'
+
+import sys, os
+from calibre.constants import iswindows, config_dir, get_version
+
+ipydir = os.path.join(config_dir, ('_' if iswindows else '.')+'ipython')
+
+def old_ipython(user_ns=None): # {{{
+    old_argv = sys.argv
+    sys.argv = ['ipython']
+    if user_ns is None:
+        user_ns = locals()
+    os.environ['IPYTHONDIR'] = ipydir
+    if not os.path.exists(ipydir):
+        os.makedirs(ipydir)
+    for x in ('', '.ini'):
+        rc = os.path.join(ipydir, 'ipythonrc'+x)
+        if not os.path.exists(rc):
+            open(rc, 'wb').write(' ')
+    UC = '''
+import IPython.ipapi
+ip = IPython.ipapi.get()
+
+# You probably want to uncomment this if you did %upgrade -nolegacy
+import ipy_defaults
+
+import os, re, sys
+
+def main():
+    # Handy tab-completers for %cd, %run, import etc.
+    # Try commenting this out if you have completion problems/slowness
+    import ipy_stock_completers
+
+    # uncomment if you want to get ipython -p sh behaviour
+    # without having to use command line switches
+
+    import ipy_profile_sh
+
+
+    # Configure your favourite editor?
+    # Good idea e.g. for %edit os.path.isfile
+
+    import ipy_editors
+
+    # Choose one of these:
+
+    #ipy_editors.scite()
+    #ipy_editors.scite('c:/opt/scite/scite.exe')
+    #ipy_editors.komodo()
+    #ipy_editors.idle()
+    # ... or many others, try 'ipy_editors??' after import to see them
+
+    # Or roll your own:
+    #ipy_editors.install_editor("c:/opt/jed +$line $file")
+
+    ipy_editors.kate()
+
+    o = ip.options
+    # An example on how to set options
+    #o.autocall = 1
+    o.system_verbose = 0
+    o.confirm_exit = 0
+
+main()
+    '''
+    uc = os.path.join(ipydir, 'ipy_user_conf.py')
+    if not os.path.exists(uc):
+        open(uc, 'wb').write(UC)
+    from IPython.Shell import IPShellEmbed
+    ipshell = IPShellEmbed(user_ns=user_ns)
+    ipshell()
+    sys.argv = old_argv
+# }}}
+
+def ipython(user_ns=None):
+    try:
+        import IPython
+        from IPython.config.loader import Config
+    except ImportError:
+        return old_ipython(user_ns=user_ns)
+    if not user_ns:
+        user_ns = {}
+    c = Config()
+    c.InteractiveShellApp.exec_lines = [
+        'from __future__ import division, absolute_import, unicode_literals, print_function',
+        ]
+    c.TerminalInteractiveShell.confirm_exit = False
+    c.PromptManager.in_template = (r'{color.LightGreen}calibre '
+            '{color.LightBlue}[{color.LightCyan}%s{color.LightBlue}]'
+            r'{color.Green}|\#> '%get_version())
+    c.PromptManager.in2_template = r'{color.Green}|{color.LightGreen}\D{color.Green}> '
+    c.PromptManager.out_template = r'<\#> '
+    c.TerminalInteractiveShell.banner1 = ('Welcome to the interactive calibre'
+            ' shell!\n\n')
+    c.PromptManager.justify = True
+    c.TerminalIPythonApp.ipython_dir = ipydir
+    os.environ['IPYTHONDIR'] = ipydir
+
+    c.InteractiveShell.separate_in = ''
+    c.InteractiveShell.separate_out = ''
+    c.InteractiveShell.separate_out2 = ''
+
+    c.PrefilterManager.multi_line_specials = True
+
+    IPython.embed(config=c, user_ns=user_ns)
+