Catalytic hydrocracking of 4-(1-naphthylmethyl)bibenzyl (NMBB) predominantly yielded naphthalene and 4-methylbibenzyl. Various iron compounds were examined as catalyst precursors. Sulfur addition to most catalyst precursors led to substantially higher catalyst activity and higher conversion. NMBB was also treated with sulfur in the absence of iron compounds, in concentrations of 1.2-3.4 wt %, corresponding to the conditions present in reactions with added iron compounds. Increasing sulfur concentrations led to higher NMBB conversions. Furthermore, sulfur had a permanent effect on the reactor walls. A black sulfide layer formed on the surface which could not be removed mechanically. The supposed noncatalytic reactions done in the same reactor but after experiments with added sulfur showed higher conversions than comparable experiments done in new reactors. This wall catalytic effect can be reduced by treating the sulfided reactors with hydrochloric acid. The results of this work demonstrate the significant effect of sulfur addition and sulfur-induced residual wall effects on carbon-carbon bond cleavage and hydrogenation of aromatics.