For polyacrylonitrile (PAN) based carbon fiber (CF) process, we developed a lab scale wet spinning line and a continuous tailor-made stabilization system with ten columns for controlling temperature profile. PAN precursor was spun with a different spinning rate. PAN spun fibers were stabilized with a total duration of 45 to 110 min at a given temperature profile. Furthermore, a stabilization temperature profile was varied with the last column temperature from 230 to 275oC. Stabilized fibers were carbonized in nitrogen atmosphere at 1200oC in a furnace. Morphologies of spun and CFs were observed using optical and scanning electron microscopy, respectively. Tensile properties of resulting CFs were measured. The results revealed that process conditions such as spinning rate, stabilization time, and temperature profile affect microstructure and tensile properties of CFs significantly. Keywords : Polyacrylonitrile, Carbon fiber, Tensile properties