A thermodynamic analysis of propane dehydrogenation with carbon dioxide was performed using constrained Gibbs free energy minimization method. Different reaction networks corresponding to different catalytic systems, including non-redox and redox oxide catalysts, were simulated. The influences of CO2/C3H8 molar ratio (1–10), temperature (700–1000 K), and pressure (0.5–5 bar) on equilibrium conversion and product composition were studied. In the presence of CO2 with a molar ratio of CO2/C3H8 = 1, the temperature of dehydrogenation can be 30 K lower than that of dehydrogenation in the presence of steam (H2O/C3H8 = 1) and about 50 K lower than that of simple dehydrogenation without dilution to achieve 60% propane conversion. It was found that the occurrence of dry reforming of propane and coke-forming side reactions could strongly impact the equilibrium product composition of the multireaction system and, therefore, these reactions should be kinetically controlled. Comparison of the simulated reactant conversions with those reported in the literatures revealed that the experimental conversion levels of propane are far below the corresponding equilibrium values due to rapid catalyst deactivation by coke, implying that research efforts should be directed toward formulation of more active and selective catalysts.