Catalytic reduction and oxidation of NO over polyacrylonitrile based activated carbon fibers (PAN-ACF) under various conditions were carried out to develop removal process of NO from the flue gas. The effect of temperature, oxygen concentration and the moisture content for the reduction of NO with ammonia as a reducing agent was investigated. The reduction of NO increased with the oxygen concentration, but decreased with the increased temperature. The moisture content in the flue gas affects the reduction of NO as the inhibition of the adsorption of the other components and the reaction on the surface of ACE For the oxidation of NO to NO2 over PAN-ACF without using a reducing gas, it showed the temperature and the oxygen concentration of the flue gas are the important factors for the NO conversion in which the conversion increased with oxygen concentration and decreased with the temperature increase and might be the alternative option for the selective catalytic reduction process.