The aim of the study was to provide an opportunity to reuse of grey water after treatment in order to overcome the scarcity of freshwater in Pakistan. Treated grey water can be reliable source for consumption i.e. landscape, public parks and irrigation etc. Rice straw is considered as a waste material globally and burnt at fields after harvesting of paddy rice so it was used as a raw material to produce both the filters. It is stated that activated carbon (AC) prepared by agroindustrial waste are considered as low-cost generated as compared to industrially prepared activated carbon. Activated carbon was prepared in a muffle furnace and added activating agent (MgCl2) in an inert atmosphere at the temperature 550 o C for two hours. Filters for application were fabricated by two different methods, one was filled by activated carbon and the other one partially filled by rice straw and remaining space was filled by activated carbon. Efficiency of both the filters was assessed by application on synthetic grey water. The FTIR results of MgCl2 Based activated carbon showed 6 peaks which confirms the attachment of aromatics, carboxylic acids, amides, and miscellaneous classes on the surface. Whereas, FTIR of rice straw showed the functional groups of amines, aromatic, alkanes, alkanes and amines so it is concluded that different peaks have the same functional groups but with different structures. While the XRD analysis of produced activated carbon showed the peaks between 1o to 40o which is the confirmations of the amorphous crystalline structure and residual ash whereas rice straw XRD results shows that it is crystalline structure and having good stability for adsorption. Furthermore, SEM images authenticated the XRD results by showing the presence of MgCl2 on the surface of activated carbon. It was also concluded from SEM micrographs that the high temperature and activating agent influences the structure of biomass (Rice Straw) and helps in converting it into a more use full material. SEM images of rice straw are showing uniform structure and a series of tunnels. Magnification in SEM at 3000, sub-pores were observed with the irregular shape and smooth surface. It was concluded that combined filter is more efficient than the activated carbon filter which has significantly removed BOD5, COD, TSS, Turbidity and Oil & Fats up to 93%, 92%, 75%, 91% and 93%, respectively and pH of the synthetic grey water was neutralized from 9.2 to 7.8 by combined filter whereas activated carbon has neutralized up to 8.0.