A reaction with distillation structure utilizes a plurality of distillation trays and catalyst containers which provide a catalytic reaction zone and a primary flow path for descending liquid streams. Catalytic reaction of the liquid streams within the catalyst reaction zone formed in the containers occurs concurrently with fractionation of the reaction products on the distillation trays. The containers may extend continuously through the reaction zone of the distillation reactor to allow for dump loading and removal of the solid particulate catalyst. Alternatively, the catalyst containers may extend from one tray toward a lower tray without passing through the latter. Structure may also be provided within the containers to influence system hydraulics through the accumulation of liquid within the catalyst bed. This is done by providing an open area interiorly of the catalyst bed into which liquid on the distillation tray is driven. This open area communicates with a liquid accumulation zone wherein liquid accumulates until a sufficient liquid head drives the liquid generally horizontally outward, through the catalyst bed.