The effect of addition of an inert liquid phase on the rate of heat generation in the catalytic synthesis of methanol from syngas has been studied. Gas compositions typical of product gases from Lurgi and Koppers-Totzek gasifiers, represented by H2-rich and CO-rich syngas respectively, were used to experimentally verify the “slope” and “dynamic” critria in a three-phase fixed bed recycle reactor. The liquid medium, witco-40 oil, has been effective in controlling the rate of heat generation and in preventing catalyst overheating, signifying that the liquid phase synthesis is thermally far more stable than the vapor phase synthesis. The experimental thermal stability study provides crucial and valuable information in commercializing the liquid phase methanol synthesis process. The current approach of thermal stability analysis does not require any a priori assumption or predetermined reaction kinetics.