Adsorption tests of elemental mercury were carried out by using KI modified clay (bentonite) in simulated flue gas under different conditions. Brunauer-Emett-Teller measurement (BET), Fourier Transform Infraredspectroscopy (FTIR) and Thermogravimetric Analysis (TGA) were used to analyze the physical and chemical properties of the materials. Compared with the original bentonite, Hg(0) removal efficiency and Hg(0) adsorption capacity were drastically improved by the KI treatment. The experiment results also indicated that temperature could enhance the property of Hg(0) adsorption. Chemical adsorption was the dominant part in the process of Hg(0) adsorption. O2 was a beneficial factor for Hg(0) adsorption. SO2 was found to have a slight promotional effect on Hg(0) adsorption. The existence of H2O exhibited a dramatic inhibitory effect on Hg(0) adsorption.