Activated mud has been employed to remove phenolic compounds, a common contaminant in wastewaters. Because of high surface area per unit area, activated mud is the most effective adsorbent and exhibits high capacity of adsorption of phenolic compounds. A complete study was undertaken on the adsorption of phenol starting from an aqueous solution on activated mud with ammonium chloride. The removal is found to be dependent on concentration of phenol and increasing of concentrations favour the uptake. The isotherms and kinetics of adsorption of phenol on activated mud were studied at 20oC. Equilibrium isotherm of phenol on activated mud is obtained and the results shows that the Langmuir model provided the best fit for the adsorption data. From the experimental results obtained, the adsorption process can be well described with the pseudo-second order model.