Cracking of propyl side chains from 4-propylphenol, a model compound for lignin monomers, is studied for a commercial ZSM-5 zeolite catalyst. The decline of 4-propylphenol conversion with time on stream can be delayed by co-feeding water. FTIR spectroscopy shows the formation of chemisorbed phenolates during reactions and significant amounts of phenolics are detected by GC-MS of the extract from the spent catalysts. Thus, chemisorbed phenolates are identified as the main reason for deactivation in the absence of water. Regardless of the amount of co-fed water, substituted monoaromatics and polyaromatic species are formed. Comprehensive characterization of the spent catalysts including Raman and solid-state 27Al NMR spectroscopy, and thermogravimetric analysis points to a combination of deactivation processes. First, phenolates bind to Lewis acid sites within the zeolite framework and hinder diffusion unless they are hydrolyzed by water. In addition, light olefins created during the cracking process react to form a polyaromatic coke that deactivates the catalyst more permanently.