A two-phase reactor model that describes the hydrocracking of Fischer-Tropsch-derived wax (eC 80 ) has been developed that combines elementary hydrocracking kinetics and vapor-liquid equilibrium (VLE) with the design equations for an ideal fixed-bed reactor. The kinetics of the reaction considers each carbon number as an independent species in which all structural isomers and (de)hydrogenation steps are in chemical equilibrium. -Scission cracking is rate-controlling for each carbon number; thus, an increase in reaction rate with increasing carbon number is observed. The VLE is described by a Peng-Robinson equation of state, and phase equilibrium is maintained at all locations down the reactor by simultaneous solution of the VLE within the reactor design equations. The model has only one adjustable rate constant: the -scission rate constant, which controls the conversion. Meanwhile, the selectivity has no adjustable parameters and is controlled completely by the kinetic model and VLE. Results show that the VLE is responsible for the improved selectivity to diesel (C 10 -C 20 ) with increasing temperature, decreasing pressure, and increasing H 2 :hydrocarbon feed ratio. These results are supported by experimental two-phase data. The model is able to predict the product distribution of a typical hydrocracking feed to the Shell Middle Distillate Process qualitatively.