How do you dynamically compile and load external java classes?

Take a look at JavaCompiler

The following is based on the example given in the JavaDocs

This will save a File in the testcompile directory (based on the package name requirements) and the compile the File to a Java class...

package inlinecompiler;

import java.io.File;
import java.io.FileWriter;
import java.io.IOException;
import java.io.Writer;
import java.net.URL;
import java.net.URLClassLoader;
import java.util.ArrayList;
import java.util.Arrays;
import java.util.List;
import javax.tools.Diagnostic;
import javax.tools.DiagnosticCollector;
import javax.tools.JavaCompiler;
import javax.tools.JavaFileObject;
import javax.tools.StandardJavaFileManager;
import javax.tools.ToolProvider;

public class InlineCompiler {

    public static void main(String[] args) {
        StringBuilder sb = new StringBuilder(64);
        sb.append("package testcompile;\n");
        sb.append("public class HelloWorld implements inlinecompiler.InlineCompiler.DoStuff {\n");
        sb.append("    public void doStuff() {\n");
        sb.append("        System.out.println(\"Hello world\");\n");
        sb.append("    }\n");
        sb.append("}\n");

        File helloWorldJava = new File("testcompile/HelloWorld.java");
        if (helloWorldJava.getParentFile().exists() || helloWorldJava.getParentFile().mkdirs()) {

            try {
                Writer writer = null;
                try {
                    writer = new FileWriter(helloWorldJava);
                    writer.write(sb.toString());
                    writer.flush();
                } finally {
                    try {
                        writer.close();
                    } catch (Exception e) {
                    }
                }

                /** Compilation Requirements *********************************************************************************************/
                DiagnosticCollector<JavaFileObject> diagnostics = new DiagnosticCollector<JavaFileObject>();
                JavaCompiler compiler = ToolProvider.getSystemJavaCompiler();
                StandardJavaFileManager fileManager = compiler.getStandardFileManager(diagnostics, null, null);

                // This sets up the class path that the compiler will use.
                // I've added the .jar file that contains the DoStuff interface within in it...
                List<String> optionList = new ArrayList<String>();
                optionList.add("-classpath");
                optionList.add(System.getProperty("java.class.path") + File.pathSeparator + "dist/InlineCompiler.jar");

                Iterable<? extends JavaFileObject> compilationUnit
                        = fileManager.getJavaFileObjectsFromFiles(Arrays.asList(helloWorldJava));
                JavaCompiler.CompilationTask task = compiler.getTask(
                    null, 
                    fileManager, 
                    diagnostics, 
                    optionList, 
                    null, 
                    compilationUnit);
                /********************************************************************************************* Compilation Requirements **/
                if (task.call()) {
                    /** Load and execute *************************************************************************************************/
                    System.out.println("Yipe");
                    // Create a new custom class loader, pointing to the directory that contains the compiled
                    // classes, this should point to the top of the package structure!
                    URLClassLoader classLoader = new URLClassLoader(new URL[]{new File("./").toURI().toURL()});
                    // Load the class from the classloader by name....
                    Class<?> loadedClass = classLoader.loadClass("testcompile.HelloWorld");
                    // Create a new instance...
                    Object obj = loadedClass.newInstance();
                    // Santity check
                    if (obj instanceof DoStuff) {
                        // Cast to the DoStuff interface
                        DoStuff stuffToDo = (DoStuff)obj;
                        // Run it baby
                        stuffToDo.doStuff();
                    }
                    /************************************************************************************************* Load and execute **/
                } else {
                    for (Diagnostic<? extends JavaFileObject> diagnostic : diagnostics.getDiagnostics()) {
                        System.out.format("Error on line %d in %s%n",
                                diagnostic.getLineNumber(),
                                diagnostic.getSource().toUri());
                    }
                }
                fileManager.close();
            } catch (IOException | ClassNotFoundException | InstantiationException | IllegalAccessException exp) {
                exp.printStackTrace();
            }
        }
    }

    public static interface DoStuff {

        public void doStuff();
    }

}

Now updated to include suppling a classpath for the compiler and loading and execution of the compiled class!

I suggest using the Java Runtime Compiler library. You can give it a String in memory and it will compile and load the class into the current class loader (or one of your choice) and return the Class loaded. Nested classes are also loaded. Note: this works entirely in memory by default.

e.g.

 // dynamically you can call
 String className = "mypackage.MyClass";
 String javaCode = "package mypackage;\n" +
                  "public class MyClass implements Runnable {\n" +
                  "    public void run() {\n" +
                  "        System.out.println(\"Hello World\");\n" +
                  "    }\n" +
                  "}\n";
 Class aClass = CompilerUtils.CACHED_COMPILER.loadFromJava(className, javaCode);
 Runnable runner = (Runnable) aClass.newInstance();
 runner.run();