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I made some changes to the file app/code/core/Mage/Checkout/Model/Observer.php. However those changes are not reflecting in includes/src/__checkout.php in the Mage_Checkout_Model_Observer class.(After flushing all the magento caches)

In fact, I put some obvious errors in the app/code/core/Mage/Checkout/Model/Observer.php file (removed the closing bracket of the class), still did not get any error anywhere from the website.

Why is magento ignoring changes I make to a php file?

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    As a good practice I highly suggest that you keep the original app/code/core file and copy it to app/code/local. This way your changes won't be overwritten when you upgrade your Magento instance. – Raphael at Digital Pianism May 21 '16 at 22:04
  • Will magento automatically use the files in app/code/local instead of app/code/core or I will have to point to the new location manually somewhere? – Arnab Bhagabati May 22 '16 at 7:03
  • No Magento Will automatically uses them as long as you respect the path. In your case the file will have to be underapp/code/local/Mage/Checkout/Model/Observer.php – Raphael at Digital Pianism May 22 '16 at 8:06

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