Feed-effluent heat exchangers (FEHEs) are widely used in high-temperature exothermic adiabatic tubular reactor systems to conserve energy. The hot reactor effluent is recycled back to a feed preheater to provide all or a portion of the energy required to preheat the reactor feed to the optimum reactor inlet temperature. Several alternative flowsheets have been presented in the literature for this type of configuration. Some use bypassing of cold material around the FEHE, some use a furnace after the FEHE and before the reactor, and some use a cooler (steam generator) after the reactor. A number of control structures have been proposed to control the reactor inlet temperature, which is critical for the steady-state performance (achieving the desired conversion and staying below some maximum temperature). It is also critical for dynamic performance since these systems can be openloop unstable as a result of the positive feedback of energy from the reactor back to the preheat system. The control structure must prevent quenching to low temperatures ("blowout") and temperature runaways ("blowup"). The most commonly suggested control structure recommends controlling the temperature of the mixed stream after the FEHE by manipulating the bypass flow and controlling the reactor inlet temperature by manipulating fuel to the furnace. This paper presents an alternative process and control configuration that reduces furnace energy consumption while maintaining good dynamic control in the face of very large disturbances.