The main goal of this research is to analyze afluidized bed Pd membrane reactor with Rh catalyst to produce hydrogen viamethane steam reforming and to compare with traditional reactors. In thisregard, a two dimensional steady and adiabatic model for this kind of reactorhas been developed and its validity has been shown in comparison withexperimental data and a good agreement between them has been found. Effects ofsome important operating parameters such as Temperature, pressure, spacevelocity, steam to methane ratio and sweeping gas velocity on the performanceof reactor have been studied. Simulation results show that the membrane reactorin different operating conditions has a better performance than traditionalreactor. Also, these results show following statements: i- increase in temperature increases methaneconversion, Hydrogen recovery and total yield. ii- an increase in pressure decreases methaneconversion and total yield but increases hydrogen recovery. iii- an increase in space velocity decreasesmethane conversion, hydrogen recovery and total yield. ix- an increase in porosity decreases methaneconversion, hydrogen recovery and total yield. x- an increase in sweeping gas velocityincreases methane conversion, hydrogen recovery and total yield. xi- an increase in steam to methane ratioincreases methane conversion, hydrogen recovery and total yield. At the end it has been shown that in the sameoperation conditions Rh catalyst has a better performance than Ni catalyst in termsof methane conversion. Keywords: hydrogen, methane steam reforming, modeling and simulation, membrane