A novel inorganic hollow fiber membrane reactor (iHFMR) has been developed and applied to the catalytic dehydrogenation of propane to propene. Alumina hollow fiber substrates, prepared by a phase inversion/sintering method, possess a unique asymmetric structure that can be characterized by a very porous inner surface from which finger-like voids extend across similar to 80% of the fiber cross-section with the remaining 20% consisting of a denser sponge-like outer layer. In contrast to other existing Pd/Ag composite membranes, where an intermediate gamma-Al2O3 layer is often used to bridge the Pd/Ag layer and the substrate, the Pd/Ag composite membrane prepared in this study was achieved by coating the Pd/Ag layer directly onto the outer surface of the asymmetric substrate. After depositing submicron-sized Pt (0.5 wt %)/gamma-alumina catalysts in the finger-like voids of the substrates, a highly compact multifunctional iHFMR was developed. Propane conversion as high as 42% was achieved at the initial stage of the reaction at 723 K. In addition, the space-time yields of the iHFMR were similar to 60 times higher than that of a fixed bed reactor, demonstrating advantages of using iHFMR for dehydrogenation reactions. (C) 2009 American Institute of Chemical Engineers AIChE J, 55: 2389-2398, 2009