In this study, we have employed a Runge-Kutta numerical method to simulate the hydrogen production from the dehydrogenation of ethanol in a palladium membrane reactor. The reacting system consists of a double-tube reactor with a palladium membrane coated on the inner porous stainless steel tube. The shell side is loaded an appropriate amount of active catalyst over which the dehydrogenation of ethanol occurs. An empirical rate law from Franckaerts and Froment (1964) is used to describe the ethanol dehydrogenation behavior. One-dimensional plug flow, negligible axial dispersion of heat and mass transfer, and negligible radial gradients of temperature and concentration are assumed before conducting the numerical simulation. The simulation results show that the membrane reactor, which combines reaction and separation in a single unit, not only increases the reaction conversion, but also improves the efficiency of the reactor. When the ethanol feed is 2.37x10(-6) mole/s and with a purge gas flow rate of 10(-3) mole/s in the permeation side, the conversion will achieve 100% which exceed the equilibrium value of 81.7%. With proper operating conditions, 100% recovery of hydrogen can be achieved either by using a high flow rate of purge gas in the separation side or by reducing the pressure of separation side to nearly vacuum.