diff --git a/RELEASE.md b/RELEASE.md
index b374f1a91e..c1194ebc7f 100644
--- a/RELEASE.md
+++ b/RELEASE.md
@@ -26,7 +26,7 @@
 * `kedro/contrib/decorators/memory_profiler.py` copied to `kedro/extras/decorators/memory_profiler.py`.
 * `kedro/contrib/io/transformers/transformers.py` copied to `kedro/extras/transformers/time_profiler.py`.
 * `kedro/contrib/colors/logging/color_logger.py` copied to `kedro/extras/logging/color_logger.py`.
-* `extras/ipython_loader.py` copied to `kedro/extras/ipython/ipython_loader.py`.
+* `extras/ipython_loader.py` copied to `tools/ipython/ipython_loader.py`.
 * `kedro/contrib/io/cached/cached_dataset.py` copied to `kedro/io/cached_dataset.py`.
 * `kedro/contrib/io/catalog_with_default/data_catalog_with_default.py` copied to `kedro/io/data_catalog_with_default.py`.
 * `kedro/contrib/config/templated_config.py` copied to `kedro/config/templated_config.py`.
diff --git a/docs/source/04_user_guide/11_ipython.md b/docs/source/04_user_guide/11_ipython.md
index 451884ec79..cd00aa5260 100644
--- a/docs/source/04_user_guide/11_ipython.md
+++ b/docs/source/04_user_guide/11_ipython.md
@@ -269,9 +269,9 @@ There are optional extra scripts that can help improve your Kedro experience for
 
 ### IPython loader
 
-The script `kedro/extras/ipython/ipython_loader.py` helps to locate IPython startup directory and run all Python scripts in it when working with Jupyter notebooks and IPython sessions. It should work identically not just within a Kedro project, but also with any project that contains IPython startup scripts.
+The script `tools/ipython/ipython_loader.py` helps to locate IPython startup directory and run all Python scripts in it when working with Jupyter notebooks and IPython sessions. It should work identically not just within a Kedro project, but also with any project that contains IPython startup scripts.
 
-This script will automatically locate `.ipython/profile_default/startup` directory starting from the current working directory and going up the directory tree. If the directory was found, all Python scripts in it are be executed.
+This script will automatically locate `.ipython/profile_default/startup` directory starting from the current working directory and going up the directory tree. If the directory was found, all Python scripts in it are executed.
 
 > *Note:* This script will only run startup scripts from the first encountered `.ipython/profile_default/startup` directory. All consecutive `.ipython` directories higher up in the directory tree will be disregarded.
 
@@ -281,7 +281,7 @@ To install this script simply download it into your default IPython config direc
 
 ```bash
 mkdir -p ~/.ipython/profile_default/startup
-wget -O ~/.ipython/profile_default/startup/ipython_loader.py https://raw.githubusercontent.com/quantumblacklabs/kedro/master/kedro/extras/ipython/ipython_loader.py
+wget -O ~/.ipython/profile_default/startup/ipython_loader.py https://raw.githubusercontent.com/quantumblacklabs/kedro/master/tools/ipython/ipython_loader.py
 ```
 
 #### Prerequisites
diff --git a/kedro/extras/ipython/__init__.py b/tests/tools/ipython/__init__.py
similarity index 100%
rename from kedro/extras/ipython/__init__.py
rename to tests/tools/ipython/__init__.py
diff --git a/tests/extras/ipython/test_ipython_loader.py b/tests/tools/ipython/test_ipython_loader.py
similarity index 98%
rename from tests/extras/ipython/test_ipython_loader.py
rename to tests/tools/ipython/test_ipython_loader.py
index c2de4db3c9..c037a05ac9 100644
--- a/tests/extras/ipython/test_ipython_loader.py
+++ b/tests/tools/ipython/test_ipython_loader.py
@@ -30,9 +30,8 @@
 from pathlib import Path
 
 import pytest
-
-from kedro.extras.ipython import ipython_loader
-from kedro.extras.ipython.ipython_loader import locate_ipython_startup_dir
+from tools.ipython import ipython_loader
+from tools.ipython.ipython_loader import locate_ipython_startup_dir
 
 
 @pytest.fixture
diff --git a/tests/extras/ipython/__init__.py b/tools/__init__.py
similarity index 100%
rename from tests/extras/ipython/__init__.py
rename to tools/__init__.py
diff --git a/kedro/extras/ipython/README.md b/tools/ipython/README.md
similarity index 100%
rename from kedro/extras/ipython/README.md
rename to tools/ipython/README.md
diff --git a/tools/ipython/__init__.py b/tools/ipython/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/kedro/extras/ipython/ipython_loader.py b/tools/ipython/ipython_loader.py
similarity index 100%
rename from kedro/extras/ipython/ipython_loader.py
rename to tools/ipython/ipython_loader.py