In this study the methyl tert-butyl ether (MTBE) decomposition over H3PW12O40 was carried out in a cellulose acetate membrane reactor. The permeability of methanol through the cellulose acetate membrane was about 30 and 300 times higher than that of either isobutene or MTBE, respectively. The isobutene selectivity in the fixed bed reactor was only slightly higher than the methanol selectivity due to the side reaction. In the cellulose acetate membrane reactor, however, the isobutene selectivity in the rejected stream was 68% and the methanol selectivity in the permeated stream was up to 97%. The MTBE conversion in the membrane reactor was about 7% higher than that in the membrane-free fixed bed reactor under the same reaction conditions. The enhanced performance of the membrane reactor in in this reversible reaction was mainly due to the selective permeation of methanol which resulted in a methanol-deficient condition suppressing MTBE synthesis reaction.