In this paper, the local entropy generation analysis has been conducted based on a two-dimensional, two-phase, non-isothermal DMFC (direct methanol fuel cell) model, the entropy generation contributed by the chemical reactions, heat transfer, mass diffusion, and viscous dissipation is investigated. Then, the performance of fuel cells with different methanol barrier layers and electrolyte membranes have been studied based on the local entropy generation analysis. Results indicate that the entropy generation during cell operation is mainly caused by the irreversible electrochemical reactions, and that the entropy generated by mass diffusion and viscous dissipation can be considered negligible. The entropy generated by heat transfer is about two magnitudes less than the entropy generated by the electrochemical reactions in the passive DMFCs operating near room temperature. The overall entropy generation rate in a DMFC can be decreased by increasing the thickness of the methanol barrier layer and decreasing the thickness of the electrolyte membrane. (C) 2010 Published by Elsevier Ltd.