Activated carbon is produced from coconut shell char using steam or carbon dioxide as the reacting gas in a 100 mm diameter fluidized bed reactor. The effect of process parameters such as reaction time, fluidizing velocity, particle size, static bed height, temperature of activation, fluidizing medium, and solid raw material on activation is studied. The product is characterized by determination of iodine number and BET surface area. The product obtained in the fluidized bed reactor is much superior in quality to the activated carbons produced by conventional processes. Based on the experimental observations, the optimum values of process parameters are identified.