Autothermal multifunctional reactors have been a subject of vital research and development. However, the mechanisms for the effects of various design factors on heat transfer characteristics are still not fully understood. This study relates to a thermochemical process for producing hydrogen by the catalytic endothermic reaction of methanol with steam in a thermally integrated microchannel reforming reactor. Computations are carried out to better understand the specific features of coupling endothermic and exothermic reactions. The effects of wall heat conduction properties and channel dimensions on heat transfer characteristics and reactor performance are investigated. The respective considerations are presented and discussed for different modes of operation. The results indicate that maximum temperature control is the key issue in coupling endothermic and exothermic reactions in an autothermal mode of operation. The rate of the hydrogen production reaction is limited by the ability to remove heat from the reactor. Reaction heat flux profiles are considerably affected by channel dimensions. The peak reaction heat flux increases with the channel dimensions while maintaining the flow rates. The thermal conductivity of the channel walls is fundamentally important. Materials with high thermal conductivity are preferred for the channel walls. Thermally conductive ceramics and metals are well-suited. Wall materials with poor heat conduction properties degrade the reactor performance. Design recommendations are made to improve thermal performance for the reactor. Improved heat removal could dramatically increase the throughput of the heat-integrated reactor. Nearly complete methanol conversion to hydrogen is achieved and the rate of conversion is high due to the excellent heat conduction properties of the channel walls.