A pelletized, environmentally friendly animal litter. The animal litter includes birch bark waste in pellet form that is mostly hydrophobic to allow liquid waste to quickly pass therethrough while trapping a small amount of waste therein that adheres to the surface of the pellet and is then absorbed over time. The litter is used in a litter box system that includes a base, a drawer slidably received therein for capturing waste in a preferred absorbent pad and a removeable grate suspended thereover for retaining the litter thereover. The drawer defines a container of sufficient volume to receive all of the litter when a standard amount of litter is used to fill the box which improves ease in changing litter by removing the grate and allowing the litter to drop into the drawer.