The preparation of activated carbon from palm kernel shell for methane adsorption was studied. Taguchi orthogonal array design was employed to optimize the preparation of activated carbon. The statistical results show that the optimized conditions are the impregnation ratio of 0.55, the activation temperature of 900 ℃ and the activation time of 150min. The impregnation ratio has the most influence on methane adsorption based on S/N ratio analysis. The mathematical model was developed using regression analysis as a function of independent variables. The results of experiment using optimum conditions fall within the predicted value obtained from the developed model. Activated carbon prepared at optimum conditions which have the highest BET surface area of 1,548.0m2/g and the total pore volume of 1.0 cm3/g recorded the highest methane uptake compared to other conditions. The equilibrium data of the adsorption characteristic fitted favourably to the Freundlich isotherm.