In this study attempts have been made to utilize biomass residues in a proper and efficient way. As a part of these attempts activated charcoal has been produced from coconut shell. The effects of temperature, time and impregnation ratio on activation and yield have also been studied. Experimental results show that higher temperature produces better activation but lower yield. The optimum values for activation time and impregnation ratio in producing activated charcoal were 50 min and 40%, respectively, at 600degreesC.