The present invention provides a reactor system having: (1) a first reactor receiving an oxygenate component and a hydrocarbon component and capable of converting the oxygenate component into a light olefin and the hydrocarbon component into alkyl aromatic compounds; (2) a separator system for providing a first product stream containing a C3 olefin, a second stream containing a C7 aromatic, and a third stream containing C8 aromatic compounds; (3) a first line connecting the separator to the inlet of the first reactor for conveying the second stream to the first reactor; (4) a second line in fluid communication with the separator system for conveying the C3 olefin to a propylene recovery unit, and (4) a third line in fluid communication with the separator system for conveying the C8 aromatic compounds to a xylene recovery unit.