A bench‐scale investigation was carried out on the indirect electrolytic oxidation of l‐naphthol to 1,4‐naphthoquinone by ceric ions. Chemical reaction of the naphthol (dissolved in methylene chloride) with ceric sulfate (dissolved in aqueous sulfuric acid) took place in a continuous flow static mixer. The immiscible liquids were separated, and the aqueous phase was recycled through a continuous flow electrolytic cell which regenerated the spent cerous ions. Measurements were made of chemical rate constant, liquid‐liquid phase equilibria, mass‐transfer coefficient, and reaction stoichiometry. Mathematical models of the process units were developed from fundamental principles of transport and chemical reaction phenomena, thermodynamics of ionic equilibria, and hydrodynamics of two‐phase dispersions. The models were combined to simulate the overall process flow sheet. Predictions agreed with experimental observations that conversion was highest for high flow rate and low phase ratio. It was recognized that the two‐phase chemical reactor was of central importance since its behavior influenced both product yield and electrochemical cell design.