A polymer-based catalytic membrane reactor was developed and applied for hydrodechlorination of chlorobenzene as a model compound of ground and waste water contaminants. The catalytically active membrane consists of a non-porous, thin film (about 3-7 mum) of poly(dimethylsiloxane) (PDMS) loaded with nano-sized Pd clusters. They were built-in either directly or as nano-sized, supported catalysts. A composite membrane, consisting of porous poly(acrylonitrile) (PAN) support and a Pd-loaded thin PDMS film, was fabricated on a coating machine. Defect-free membrane envelopes of 0.1 m(2) were produced and fitted into a membrane test cell. Gaseous hydrogen as reductant for hydrodechlorination is fed from the membrane's back side directly to the catalyst, embedded in the PDMS layer. The chemical reactions at the Pd surface are accompanied by absorption of chlorobenzene from the water phase into the PDMS layer and desorption of benzene and HCl back to the water phase. The specific activity of supported catalysts decreased only slightly by PDMS incorporation, e.g., from 31 l/g(Pd) min for Pd/Fe on titania to 16 l/g(Pd) min for the same catalyst built-in a 7 mum thick supported PDMS membrane and measured in the membrane test cell. Directly built-in Pd clusters are less active and more difficult to prepare on a larger scale. Some catalyst deactivation was observed and may be balanced by development of more suited nano-sized supported catalysts.