The wastewater contaminated with oil and grease which discharged from industries and factories into the wastewater system will lead to a serious problem to the environment and human health. In this study, palm kernel shells (PKS) were choose as a natural absorbent in removing oil and grease in the wastewater system as the PKS become one of the most agricultural waste in Malaysia. The ability of PKS activated carbon in reducing the oil and grease concentration were studied. The PKS were carbonized at 400°C in furnace, activation with KOH, furnace again at 800°C and adjusted the pH to neutral using the distilled water. The parameter that were studied in affecting the removal oil and grease in wastewater were the effect of different contact time with initial concentration of oil and grease and the effect of different flow rate. Column adsorption method were conducted in identify the affecting parameters followed by the gravimetric method in determine the remaining oil and grease. At the 20 hours period of contact time, the removal efficiency of oil and grease were 99.18%. The PKS activated carbon shows the highest removal of oil and grease at 98.81% at 1 mL/min of flow rate. The functional group and the chemical structure of the PKS activated carbon before and after the absorption method were analysed. Generally, PKS activated carbon do has the ability in removing the oil and grease in the industrial wastewater.