Testing of embedded cores poses a great challenge. These cores cannot be tested in isolation because core I/Os are not directly accessible from ASIC I/Os. A novel test methodology is developed which generates a partial netlist for protection of intellectual property (IP) by performing structural analysis. This partial netlist is used in ASIC level test generation. For the remaining gates of the core, patterns are supplied to test those gates, which can be applied through only core scan chain. Another scheme is developed to select a few I/Os optimally to add boundary scan circuits to improve IP protection.