Abstract. Palm oil processing has produce agricultural waste and one of the wastes is palm kernel shell (PKS) which is abundance and creating disposal problems in landfill. Recently, many researchers investigate the incorporation of palm oil waste such as palm fiber, palm oil fuel ash and empty fruit bunch which could have potential as a second raw material in brick manufacture. Therefore, this study is to investigate the physical and mechanical properties of PKS as clay replacement in fired clay brick. Different percentages of PKS (0%, 1%, 5% and 10%) were incorporated into fired clay brick. Manufactured bricks were fired at 1050°C with heating rate of 1°C/min and were tested with dry density, shrinkage, initial rate of suction, water absorption, porosity and compressive strength. XRF result shows that both clay soil and PKS have a highest percentage of Silicon Dioxide (SiO 2 ) and Iron Oxide (Fe 2 O 3 ). Throughout this study, PKSB1% shows the best result compared to others brick with several improvements on physical and mechanical properties. As the conclusion, PKS could be a potential waste to be utilized as it produces adequate brick with better strength and complied with the requirement.