In the Hydrogen based economy, distributed power generation systems using fuel cell technology require modularity. This modularity in power generation can be achieved by process intensification of the equipments involved. The water gas shift reaction is an integral part of hydrocarbon based Hydrogen generation and the reaction is kinetically limited and hence occupies the largest volume. Process intensification of the water gas shift reactor and the hydrogen separator leads to a membrane reactor. Computational Fluid Dynamics was used in this study to analyze a Palladium based water gas shift membrane reactor and the optimum operating conditions for the same were identified and reported.