Characteristics of the char produced in the co-pyrolysis of used rubber and larch sawdust were studied in the conversion of low-valued pyrolysis char into value-added activated carbon using two-step co-pyrolysis, namely pyrolysis and activation processes. The physicochemical characteristics of the chars were examined by X-ray diffraction (XRD), Brunauer–Emmett–Teller (BET), and scanning electron microscopy (SEM). The results revealed that after the two-step co-pyrolysis, the upgraded carbon had BET surface areas ranging from 600 m2 g−1 to 900 m2 g−1, which were higher than the requirements for activated carbon (American Water Works Association B600 standard). Additionally, as the sawdust/rubber ratio increased, the BET value increased accordingly. A possible reaction mechanism is proposed based on the experimental results during the activation process.