The objective of this study is to obtain a fundamental understanding of the behavior of reactors with a permselective wall (membrane reactors) in terms of: design parameters (reactor length, membrane thickness); operating variables (pressure ratio, feed flow rate): physical properties (rate constant, permeability of fast gas, permselectivity, equilibrium constant): and flow patterns (recycle, cocurrent, countercurrent). Pure feed reacts on the high-pressure side of the membrane, and the product(s) formed are continuously removed to the low-pressure side so that thermodynamic equilibrium is never reached. It is shown by simulation that equilibrium shift can be enhanced by: recycling unconverted reactant; shifting feed location to separate products; and maintaining high permeation rates to reduce backreaction. It is also shown that the choice between cocurrent flow and countercurrent flow depends on the system parameters.