Methane direct cracking can be utilized to produce $CO_x$ and $NO_x$-free hydrogen for PEM fuel cells, oil refineries, ammonia and methanol production. We present the results of a systematic study of methane direct cracking using a mixed conducting oxide, Y-doped $BaZrO_3$ ($BaZr_{0.85}Y_{0.15}O_3$), membrane. In this paper, dense $BaZr_{0.85}Y_{0.15}O_3$ membrane with disk shape was successfully sintered at $1400^{circ}C$ with a relative density of more 93% via addition of 1 wt% ZnO. The ($BaZr_{0.85}Y_{0.15}O_3$) membrane is covered with Pd as catalyst for methane decomposition with an DC magnetron sputtering method. Reaction temperature was $800^{circ}C$ and high purity methane as reactant was employed to membrane side with 1.5 bar pressure. The $H_2$ produced by the reaction was transported through mixed conducting oxide membrane to the outer side. In addition, it was observed that the carbon, by-product, after methane direct cracking was deposited on the Pd/ZnO-$BaZr_{0.85}Y_{0.15}O_3$ membrane. The produced carbon has a shape of sphere and nanosheet, and a particle size of 80 to 100 nm.