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Global demand for dissolving pulp has been increasing at a remarkable pace over the last few years. A shortage in cotton and the expansion of the textile, hygiene, and health product markets are behind this booming demand. The Canadian pulp and paper industry has entered these markets by converting several paper-grade pulp mills to dissolving pulp producers. In the kraft process, part of the hemicellulose remains with the pulp after cooking and the rest is burnt in the recovery boiler to produce energy. In dissolving pulp mills, most of the hemicellulose must be removed from the wood chips in a pre-hydrolysis stage before pulping. Hemicellulose hydrolysis and its subsequent extraction will affect energy and chemical balances. In addition, the new operation will require large capital expenditures. The objective of this work was to study the conversion of a kraft pulp mill to a dissolving pulp operation and the extraction of hemicelluloses from the process. The effects of hemicellulose extraction on mill energy balance, equipment requirements, and new operating conditions were analyzed. Computer simulations of the process and thermal pinch analysis were used. The existing bottlenecks (digesters, lime kiln, and recovery boiler) to increasing the dissolving pulp production capacity were identified before and after the conversion. In addition, energy efficiency measures were identified to decrease the energy consumption of the new process.