Dynamic Cell Formation Problem (DCFP) seeks to cope with variation in part mix anddemands using machine relocation, replication, and removing; whilst from practical pointof view it is too hard to move machines between cells or invest on machine replication. Tocope with this deficiency, this paper addresses Reconfigurable Dynamic Cell FormationProblem (RDCFP) in which machine modification is conducted instead of their relocation orreplication in order to enhance machine capabilities to process wider range of productiontasks. In this regard, a mixed integer nonlinear mathematical model is proposed, which isNP-hard. To cope with the proposed model’s intractability, an Imperialist CompetitiveAlgorithm (ICA) is developed, whose obtained results are compared with those of GeneticAlgorithm’s (GA’s), showing superiority and outperformance of the developed ICA.