Disclosed is a process for converting synthesis gas to liquid hydrocarbon mixtures useful in the production of fuels and petrochemicals. The synthesis gas is contacted with at least two layers of synthesis gas conversion catalyst and at least two layers of acidic hydrocracking catalyst in an alternating layer arrangement within a single reactor tube wherein each synthesis gas conversion catalyst layer is followed by a layer of hydrocracking catalyst. The process is conducted within a single reactor at an essentially common reactor temperature and an essentially common reactor pressure. The process provides a high yield of naphtha range liquid hydrocarbons and a low yield of C21+ normal paraffins.