Propane is one of the major components in natural gas in North America area. For fuel cell electric vehicle application, hydrogen production from natural gas is available in some area. In this paper, a novel catalyst for CO2 reforming of propane was prepared for hydrogen production. 10%wt Ni/Mg(Al)O catalyst derived from hydrotalcite precursors was prepared. Performance of CO2 reforming of propane is studied over the prepared catalyst. The effect of operation conditions on the reaction, such as ratio of CO2 to C3H8 in the feed, space velocity and temperature are investigated. The results show that the optimum ratio of CO2 to C3H8 is 5. Conversion of C3H8 and CO2 increase while reaction temperature increases from 550ºC to 700ºC. A large space velocity enhances C3H8 conversion, but decreases H2 selectivity. The hydrogen formation rate of 55971 nmol•g-1•sec-1, and the C3H8 conversion of 53.7%,CO2 conversion of 67.2%,selectivity of 24.4% for H2, selectivity of 15.5% for CO occurs at CO2 to C3H8 ratio of 5 and space velocity of 45000 L•gcat-1•h-1, while reaction temperature is 600ºC.