In steam active reforming (STAR) propane dehydrogenation technology, the reaction effluent contains considerable permanent gases, e.g., H2 and CH4. Accordingly, the liquefaction needs to be operating at high pressure and low temperature (3.30MPa for shallow condensation at -24℃ and cryogenic condensation at -78℃), which is extremely energy-intensive. Besides, the by-product hydrogen, coexisting with CH4, is poor in concentration and disable to be used directly for refining processes. In this research, a retrofit with membrane unit embedding between the shallow and the cryogenic condensation units was attempted. Prism-Ⅱ membrane modules were employed to remove H2 sufficiently with the content in permeate up to 99.0%, and the residual stream was further compressed and liquefied through cryogenic condensation. The optimum operation parameters were determined through process simulation in HYSYS system. It is proper to conduct shallow condensation at 2.40MPa and -24℃, and operate cryogenic condensation at 3.30MPa and -78℃. The simulation results revealed that the power for compression can be saved by 16.1%, meanwhile, hydrogen concentration can be improved from 82.8% to 99.0% with the recovery ratio up to 85%. The techno-economic analysis based on the retrofit for a 350kt/a STAR plant revealed that the optimum Prism-Ⅱ membrane area is about 2680m2, the total compression power is decreased from 6850kW to 5750kW, which means a saving of 5.72×106CNY/a for utilities. The annual equipment depreciation increases by only 0.61×106CNY, and H2 yield is about 1.23×108m3/a. In virtue of energy saving, new equipment depreciation and hydrogen purification, the annual gross profit can be increased by 8.7×107CNY for a 350kt/a STAR plant. On the whole, the energy efficiency and the profit of STAR technology can be obviously enhanced through the retrofit with embedded hydrogen membrane separation.