The objective of this research was to produce pellet activated carbon (PAC) using parawood charcoal from the gasification process. Solutions of 0.1-2.0 M KOH were chosen for chemical activation followed by thermal activation in a tube furnace at 600-800°C for 30-120 min. The percent yield was 48.47wt% using the optimum conditions of 2.0 M KOH and 700 oC for 90 min. The results of iodine number and methylene blue adsorption of PAC were 602.75 and 202.04 mg/g, respectively, which indicated that the pore size was mostly in the range of mesopores and macropores. The Brunauere-Emmette-Teller surface area of PAC was found to be 705.47 m2 /g. Iron adsorption was carried out by feeding solutions of iron in various flow rates (0.1- 1.0 l/min) and concentrations (5-15 mg/l) through a filter cartridge. The PAC had higher iron adsorption compared to commercial activated carbon. Steam regeneration can effectively be performed to reuse the PAC as a recovery resource.