Abstract: A method of making animal litter and the product produced thereby which utilizes ground peanut hulls, peanut shells and finely ground natural mineral in a dry mixture. The mixture is subjected to a preconditioning step which heats the mixture by steam injection prior to extrusion into pellets followed by air drying. The vegetable oil content of the peanut shells provides a binder for the pellet. The mineral constituent provides ionic bonding for the nitrogen ions in liquid animal waste to reduce the odor of animal litter exposed thereto.