Hydrogen-based fuel cells for automotive and stationary applications are gaining increased attention for various reasons including their higher efficiencies and lower emissions. The use of light hydrocarbons and liquid hydrocarbon fuels to generate hydrogen is being considered as one of the potential approaches for large scale hydrogen production. There are various types of thermo-chemical processes for hydrogen production from liquid hydrocarbon fuels. Among these, thermoneutral reforming (TNR) is highly promising for on-board as well as distributed power generation applications. The TNR utilizes a novel paradigm where catalytic combustion and steam reforming functions exist on the same catalyst. The heat produced from catalytic combustion induces the endothermic steam reforming of hydrocarbons on the same catalyst surface leading to ultra-rapid reforming. In thermo-neutral reforming process the catalyst-bed temperature theoretically and adiabatically rises to a very high temperature as a result of the fuel combustion. However, there are many catalytic challenges to process diesel reforming due to its high carbon content, aromatics, and sulfur, which play a major role in catalyst deactivation. The presentation will provide an overview on liquid hydrocarbons fuel processing for syngas production and emphasizing on catalyst challenges such as sulfur management, carbon resistance catalyst design, efficient heat management reactor design and other catalyst requirements for stable operation.