Habeas Corpus Reform Act of 1987 - Amends the Federal judicial code to condition consideration of a habeas corpus claim by a State prisoner on a showing of actual prejudice resulting from the denial of a Federal right, and that: (1) State action precluded assertion of the right; (2) the Federal right asserted was newly recognized; or (3) the factual basis of the claim could not have been discovered through the exercise of reasonable diligence prior to the procedural default.

Establishes a one-year statute of limitations for habeas corpus actions brought by State prisoners.

Vests authority to issue certificates for probable cause for appeal of habeas corpus orders exclusively in the courts of appeals.

Permits denial on the merits of habeas corpus writs notwithstanding the failure to exhaust State remedies.

Prohibits the granting of a habeas corpus writ with respect to any claim which has been fully and fairly adjudicated in State proceedings.