Heavy paraffin dehydrogenation (HPD) is an equilibrium limited process for olefin production; therefore, selective H2 removal enhances olefin production and simultaneously produces pure H2. A hydrogen-selective membrane reactor may be utilized for this process. Sensitivity analysis reveals that reaction side inlet temperature/pressure and feed molar flow rate greatly affect the membrane reactor performance. H2 removal lowers reacting gas temperature/pressure and total molar flow rate and increases heavy paraffin (HP) consumption as well as olefins, H2, aromatics, light paraffins, and dienes production. Equilibrium shift increases rate, H2 permeation through membrane, and pure H2 production. Results of this study reveal that the average olefin production rate and selectivity in optimized membrane reactor are 14.45 and 6.24% higher than those of radial flow traditional reactor. Membrane reactor increases olefin production by 381.0 ton and produces 602.85 ton of pure H2 in a cycle. Membrane integration into the reactor does not negatively affect its exergy efficiency.