Due to the increasingly restrictive legal requirement, the rising costs of liquid waste disposal and the growing needs for innovative sources of water supply, wastewater reduction and recovery of valuable products, Activated carbon (AC) are gaining a considerable prominence in these fields. The purpose of this study were to investigate the feasibility of converting palm oil industrial residue namely EFB into activated carbon by one step steam pyrolysis and to investigate the treatability of this product in the removal of toxic substance such as cadmium. The AC samples produced were investigated through adsorption tests on aqueous solution of cadmium and It was found that the AC prepared at activation temperature of 900 ºC with steam flow of 2.0 ml/minutes and activation time 15 minutes represent the best quality adsorbent with highly active sites and well- developed pores. EFB-PAC has proven to be an efficient adsorbent for the removal of contaminants from industrial waste water. Thus, the prepared AC from EFB is promising toward the industrial oil palm solid waste would be utilized safely, while the prepared AC would be used for treatment of water and waste-waters effectively.