Sugar colourants are water soluble compounds present in sugar process products and the mostrnimpurities in sugar industry. Syrup decolorization can be achieved by sulphitation process.rnHowever, at the same time the formation of fine precipitate of CaSO4 become difficult torneliminate trace of SO2 in final sugar. The aims of this research were to produce activated carbonrnfrom peanut shell using KOH as an activating agent for syrup decolorization with lower colorrnand lower residual sulfur dioxide levels and as an alternative waste management method. In thisrnstudy, the first stage was producing granular activated carbon from peanut shell at differentrnparameters such as: activation temperature (500rnornornornC, 600rnC and 700rnC), KOH concentration (25, rn50 and75%wt.) and particle size (0.5, 1.5 and 2.5mm). Low ash content (1.28%) with highrnpercent of methylene blue adsorption (79.4%) of activated carbon was obtained having 0.5mmrnparticle size, 0.26%wt. KOH, and 600rnornC of activation temperature was with 0.965 desirability rnchosen as optimal activation parameter. The activated carbon at optimal condition wasrncharacterized in term of ultimate and proximate analysis, FT-IR and methylene blue adsorptionrnefficiency. Using activated carbon, the effect of various process parameters like temperature,rnactivated carbon dosage and time on decolorization of cane syrup was investigated. Under thernexperimental conditions of 45rnornC, 1.4g activated carbon dosage for 75min was found to be the rnoptimal condition for maximum cane syrup decolorization efficiency (75.5%). Consequently, thernexperimental results indicated that the peanut shell has a potential to be used as an activatedrncarbon for decolorization of cane syrup.