Steam activation treatments were introduced in the preparation of activated carbon fiber from liquefied wood (LWACF), to enlarge its specific surface area and develop the pore size distribution. With increasing activation time, the average fiber diameter of LWACF decreased from 27.2 µm to 13.2 µm, while the specific surface area increased from 1025 to 2478 m2/g. Steam activation predominantly enhanced the development of microporosity, without significant pore widening. Prolonging the steam activation time exponentially increased the removal efficiency of Cu2+ at a constant adsorbent dose, as a result of an increase in the number of micropores and acidic-oxygenated groups. Moreover, for LWACF activated for 220 min at 800 °C, the removal efficiency of Cu2+ increased from 55.2% to 99.4%, when the porous carbon fiber dose went from 0.1 to 0.5 g/L. The synthesized LWACF was proven to be a highly efficient adsorbent for the treatment of Cu2+ ion-contaminated wastewater.