An active Ni/Hβ catalyst was successfully prepared by decomposing nickel carbonyl to dispersed metallic Ni onto Hβ support. Phenethoxybenzene (POB) was used as a lignin model compound to evaluate the catalytic activity. The effects of reaction temperature, initial H2 pressure (IHP), and reaction time on the catalytic hydroconversion (CHC) of POB was studied. The results show that Ni/Hβ effectively catalyzed POB convert to monocyclic cyclanes via direct hydrogenation of benzene ring (BR) in POB, the cleavage of C‐O bridged bond induced by H+ addition, dehydration, and H− abstraction under higher IHPs. Alternatively, the CHC of POB proceeds preferentially via direct cleavage of C–O bridged bond induced by H+ addition, followed by BR hydrogenation, dehydration, and H− abstraction under lower IHP. Bicyclic cyclanes were produced via rearrangement reactions, which proceed more easily either at higher temperatures or under lower IHPs.