A system and method for improving modularity of a software source code is provided. The system comprises of a user interface for receiving source code; a source code model extractor for parsing and forming a model of the source code; a source code model database for storing the source code model, refactoring operators, and a record of refactoring changes; a modularity improvement analyzer for reading the source code model and modularity problem diagnosis data and generating a set of prescriptions; an optimal improvement suggestion selector for evaluating and selecting prescriptions; and a refactoring engine for receiving selected prescriptions and applying them on the source code.