diff --git a/docs/advanced/embedding.rst b/docs/advanced/embedding.rst
index bdfc75e0d..393031603 100644
--- a/docs/advanced/embedding.rst
+++ b/docs/advanced/embedding.rst
@@ -133,6 +133,11 @@ embedding the interpreter. This makes it easy to import local Python files:
     int n = result.cast<int>();
     assert(n == 3);
 
+Modules can be reloaded using `module::reload()` if the source is modified e.g.
+by an external process. This can be useful in scenarios where the application
+imports a user defined data processing script which needs to be updated after
+changes by the user. Note that this function does not reload modules recursively.
+
 .. _embedding_modules:
 
 Adding embedded modules
@@ -185,7 +190,7 @@ naturally:
     namespace py = pybind11;
 
     PYBIND11_EMBEDDED_MODULE(cpp_module, m) {
-        m.attr("a") = 1
+        m.attr("a") = 1;
     }
 
     int main() {
diff --git a/include/pybind11/pybind11.h b/include/pybind11/pybind11.h
index 3fcb99ff7..80102c5e8 100644
--- a/include/pybind11/pybind11.h
+++ b/include/pybind11/pybind11.h
@@ -836,6 +836,14 @@ public:
         return reinterpret_steal<module>(obj);
     }
 
+    /// Reload the module or throws `error_already_set`.
+    void reload() {
+        PyObject *obj = PyImport_ReloadModule(ptr());
+        if (!obj)
+            throw error_already_set();
+        *this = reinterpret_steal<module>(obj);
+    }
+
     // Adds an object to the module using the given name.  Throws if an object with the given name
     // already exists.
     //
diff --git a/tests/test_embed/test_interpreter.cpp b/tests/test_embed/test_interpreter.cpp
index acbad6bec..6b5f051f2 100644
--- a/tests/test_embed/test_interpreter.cpp
+++ b/tests/test_embed/test_interpreter.cpp
@@ -2,6 +2,8 @@
 #include <catch.hpp>
 
 #include <thread>
+#include <fstream>
+#include <functional>
 
 namespace py = pybind11;
 using namespace py::literals;
@@ -216,3 +218,52 @@ TEST_CASE("Threads") {
 
     REQUIRE(locals["count"].cast<int>() == num_threads);
 }
+
+// Scope exit utility https://stackoverflow.com/a/36644501/7255855
+struct scope_exit {
+    std::function<void()> f_;
+    explicit scope_exit(std::function<void()> f) noexcept : f_(std::move(f)) {}
+    ~scope_exit() { if (f_) f_(); }
+};
+
+TEST_CASE("Reload module from file") {
+    // Disable generation of cached bytecode (.pyc files) for this test, otherwise
+    // Python might pick up an old version from the cache instead of the new versions
+    // of the .py files generated below
+    auto sys = py::module::import("sys");
+    bool dont_write_bytecode = sys.attr("dont_write_bytecode").cast<bool>();
+    sys.attr("dont_write_bytecode") = true;
+    // Reset the value at scope exit
+    scope_exit reset_dont_write_bytecode([&]() {
+        sys.attr("dont_write_bytecode") = dont_write_bytecode;
+    });
+
+    std::string module_name = "test_module_reload";
+    std::string module_file = module_name + ".py";
+
+    // Create the module .py file
+    std::ofstream test_module(module_file);
+    test_module << "def test():\n";
+    test_module << "    return 1\n";
+    test_module.close();
+    // Delete the file at scope exit
+    scope_exit delete_module_file([&]() {
+        std::remove(module_file.c_str());
+    });
+
+    // Import the module from file
+    auto module = py::module::import(module_name.c_str());
+    int result = module.attr("test")().cast<int>();
+    REQUIRE(result == 1);
+
+    // Update the module .py file with a small change
+    test_module.open(module_file);
+    test_module << "def test():\n";
+    test_module << "    return 2\n";
+    test_module.close();
+
+    // Reload the module
+    module.reload();
+    result = module.attr("test")().cast<int>();
+    REQUIRE(result == 2);
+}