A compact hydrogen generator for use with fuel cells and other applications includes a hydrogen membrane reactor having a combustion chamber and a reaction chamber. The two chambers are have a fluid connection and a heat exchange relationship with one another. The hydrogen generation apparatus also includes a fuel supply, a fuel supply line for transporting fuel from the fuel supply to the reaction chamber, an oxygen supply, an oxygen supply line for transporting oxygen form the oxygen supply to the combustion chamber, as well as a tail gas supply line for transporting tail gas supply line for transporting tail gases form the reaction chamber, a combustion by-product line for transporting combustion by-products for the combustion chamber, and a reaction product line for transporting hydrogen from the reaction chamber.