Up to now, the people of Mantewe (South Kalimantan, Indonesia) have utilized ironwood waste by turning it into charcoal that can be sold. However, most charcoal production processes still use simple and traditional combustion methods which have negative impacts on the environment and society, such as air pollution due to incomplete combustion. Therefore, this study aims to analyze the environmental impact of the charcoal production process using the Life Cycle Assessment (LCA) method and to design improvement strategies to reduce environmental impacts using the Analytical Network Process (ANP). This study selected a wood charcoal industry in South Kalimantan as the object of observation with a “gate-to-gate” scope. The CML2001 method with nine impact categories selected in the LCA. Furthermore, the ANP method is used to design environmental impact reduction strategies based on the LCA results. The results of the analysis show that the main critical point in the wood charcoal industry is the burning of ironwood waste, while the second critical point is the use of heat energy from peat soil. Based on the weight, the environmental impact reduction strategies obtained from the ANP method are product diversification (0.4031), formulating the right materials (0.2765), replacing raw materials (0.26027), and using the furnace method (0.0618). This research is expected to be useful for the owners of the wood charcoal industry and can be a reference for how LCA and ANP are able to produce strategies for reducing environmental impacts in the wood charcoal industry.