Activated Carbon (TPAC) of high adsorption capacities and highly active surface properties were prepared from Thevetia peruviana by physical and chemical processes such as direct pyrolysis, dolomite process, Chemical activation with H2SO4 + H2O2, impregnation of raw material with Conc. H2SO4, KOH, ZnCl2 and H3PO4 solution respectively followed by activation at 800ºC. Adsorption capacity of activated carbon is due to porous structure, chemical nature of the surface and pH of the aqueous solution. The physico chemical characteristics such as moisture content, volatile matter, pH, conductivity, bulk density, specific gravity, porosity, methylene blue number, iodine number and SEM were investigated to understand the adsorptive capacity of activated carbon prepared from TPAC. Based on the results of the characterization studies, the activated carbon prepared by impregnation of TPAC with H3PO4 (30%) solution followed by activation at 800ºC was selected as a best quality adsorbent due to highest surface area with large number of pores and low ash content for the removal of dyes from textile industry effluent. The experimental results indicated that the prepared activated carbon is suitable for the removal of synthetic dyes from textile industry effluents.