The effect of partial internal wetting of catalyst pellets on apparent reaction kinetics at elevated temperatures and pressures is investigated experimentally and by modeling for benzene hydrogenation. A new method that combines adsorption and chemical reaction is introduced to study the kinetics influenced by capillary condensation of reagents at steady-state conditions. It is shown that the extent of liquid filling in the pellet interior has a critical effect on the global kinetics, and the current state of the catalyst depends on the history. Under certain conditions two steady states of the effectiveness factor exist. Moreover, either a decrease in temperature or increase in total pressure can increase the effectiveness factor. The model exhibits good agreement with experimental results. (C) 2004 Elsevier Ltd. All rights reserved.