In this study, we propose a reactive distillation process for production of dimethyl ether (DME). The conventional process for the production of DME consists of one reactor and two distillation columns. The reaction-distillation hybrid process for the production of DME [6] is an interlinked system between one reactor and one distillation column. The newly proposed process for the production of DME is a reactive distillation column in which the reaction and separation occurs simultaneously and the reaction takes place on liquid phase only. This characteristics of the reactive distillation process bring about great benefits. Comparison between these three processes shows a great advantage of the proposed one over the other two processes in the reduction of energy and capital cost. We examine and analyze the effect of design and operation variables on the performance of the proposed process and provide design guides for the process.