Abstract: This invention relates to the continuous production of 1,4-cyclohexane dimethanol (CHDM) and optionally and additionally of 1,4-cyclohexane dicarboxylic acid (CHDA) directly using terephthalic acid (TPA) as the raw material. More specifically, this invention relates to a method and system for continuous production of CHDM and CHDA that features direct use of TPA as feedstock, promotes efficient use of solvent and energy, and provides products with the desired high trans isomer content, by exploiting unexpected features of the thermodynamic phase behavior and the reaction mechanisms.