Te traditional way of producing activated carbon by zinc chloride method has serious shortcomings which are high zinc chloride consumption and the environmental pollution. This article gives an account of a new technique to produce powder activated carbon by compound activator, which consists of zinc chloride, as the main agent, and others. Compared with the traditional process (it is called old technique for short), new technique has such advantages as follows: 1. The total specific consumption of zinc chloride is lower than by the old technique. 2. The quality of product is better and remains stable. The indexes of the power activated carbon reach the standard of Ly 216-79 first class issued by the Ministry of Forestry of People’s Republic of China. 3. The production cost is reduced by 363 yuan per ton of carbon. 4. The temperature for activation is lower. The evaporation amount of zinc chloride is smaller. Therefore, the atmosphere pollution is decreased and the industrial environment improved. 5. The yield of carbon from sawdust is increased. It is applicable to sawdust of whatever humidity. 6. The present flat furnace can be used to produce and the operation is comfortable. All this has been proved by the production in practice.