The reactive distillation provides an attractive alternative for reaction/separation processes with reversible reactions, especially for etherification and esterification. The discrete nature of chemical species and the complexity of phase equilibria seem to cloud the picture in understanding reactive distillation. The esterifications of acetic acid with five different alcohols, ranging from C-1, to C-5, are studied. First, qualitative relationships between macroscopic process flowsheet and microscopic phase equilibria are established, and the process flowsheets are classified into type I, II, and III for these five systems. Next, a systematic design procedure is devised to optimize the design, based on the total annual cost (TAC) and dominant design variables are identified for different flowsheets. Once quantitative design is available, process characteristic are analyzed and potential problems in process operation are identified. Finally, the economic potentials of these three different flowsheets are explored and explanations are given. The results clearly indicate that it is possible to systemize the design of reactive distillation by qualitatively generating flowsheet from phase equilibria and by quantitatively completing the process flow diagram front a sequential design procedure. Moreover, some of the flowsheets presented in this work cannot be found elsewhere in the open literature. (c) 2005 American Institute of Chemical Engineers.