In tubular reactors inside a cracking furnace, heat transfer, thermal cracking reactions and coke buildup take place and closely interact with each other. It is important to understand the process and optimize its operation. A 1-dimensional (1D) pseudo-dynamic model was developed based on first principle and implemented in gPROMS (R). Coke buildup inside the tube wall was also accounted for. The model was validated dynamically. The impact of process gas temperature profile, and constant tube outer wall temperature profile on product yields and coking rate are assessed. Finally, dynamic optimization was applied to the operation of this tubular reactor. The effects of coking on reduction of production time and the decoking cost have been considered. The tube outer wall temperature profile and steam to propane ratio in the feed were used as optimization variables. Dynamic optimization investigation indicates that it can improve operating profit by 13.1%. (C) 2011 Elsevier Ltd. All rights reserved.