Direct conversion of methane into hydrogen and valuable chemicals under nonoxidative conditions is a process severely limited thermodynamically. However, the movement from the present era of fossil fuels into the coming hydrogen energy age makes it an interesting and important approach compared with the direct conversion of methane under the aid of oxidants. This paper gives a brief overview of the direct conversion of CH4 under nonoxidative conditions. At the same time, our understanding of methane dehydroaromatization over Mo/HZSM-5 catalysts for the simultaneous formation of hydrogen and light aromatics is discussed in general, while the bifunctionality of Mo/HZSM-5 catalysts and the role of carbonaceous deposits formed during the reaction are reviewed in more detail. A perspective of the topic from both academic points of view and potential industrial applications is also presented. (C) 2003 Elsevier Science (USA). All rights reserved.