Operation of a microchannel reactor during the partial oxidation of methane has been studied. Methods for the deposition of a durable (Ni-Pt)/LaCeZrO catalyst on the Fecralloy microchannel plates working under thermocycling (up to 900 °C) conditions up were developed. It was shown that the temperature profile along the microchannel plate length is not flat. A part of methane is combusted into H2O and CO2 at the front edge of the microchannel plate, which is accompanied by a big heat release. On the rest part of the microchannel plate, endothermic reactions of methane steam and dry reforming occur yielding CO and H2. As a result, the front edge of the microchannel plate (up to 2 mm in length) undergoes a heavy thermal corrosion. Test runs of the microchannel reactor with one microchannel plate demonstrated 82% methane conversion and 60% selectivity toward carbon monoxide at gas space velocity of 820,000 h-1. Scaling of the MC reactor increased hydrogen production proportionally to the number of the MC plates. The specific hydrogen production related to the volume occupied by the MC plates is about 123 L/(h·cm3).