Kediri is one of city located in East Jawa, with high production of peanut. During harvesting season, peanut processing results peanut shell waste. Meanwhile, peanut shell can be utilized as alternative livestock food source. Therefore, processing method is needed to create peanut shell powder which have economic value and that is grinding process. But, milling machine used by Karang Taruna which domiciled at Kacangan Hamlet is not suitable to produce fine peanut shell powder. This research is conducted to solve Karang Taruna’s milling machine problem by designing an effective disk mill machine to produce fine peanut shell powder that can fulfil market demand on daily basis.