AbstractPhase‐separated compartments can localize (bio)chemical reactions and influence their kinetics. They are believed to play an important role both in extant life in the form of biomolecular condensates and at the origins of life as coacervate protocells. However, experimentally testing the influence of coacervates on different reactions is challenging and time‐consuming. We therefore use a numerical model to explore the effect of phase‐separated droplets on the kinetics and outcome of different chemical reaction systems, where we vary the coacervate volume and partitioning of reactants. We find that the rate of bimolecular reactions has an optimal dilute/coacervate phase volume ratio for a given reactant partitioning. Furthermore, coacervates can accelerate polymerization and self‐replication reactions and lead to formation of longer polymers. Lastly, we find that coacervates can ‘rescue’ oscillating reaction networks in concentration regimes where sustained oscillations do not occur in a single‐phase system. Our results indicate that coacervates can direct the outcome of a wide range of reactions and impact fundamental aspects such as yield, reaction pathway selection, product length and emergent functions. This may have far‐reaching implications for origins of life, synthetic cells and the fate and function of biological condensates.