To address the issue of accurately solving neutron transport problem in complex geometry, method of characteristics (MOC) is studied in this paper, and a quite effective and memory saving cell modular ray tracing (CMRT) method is developed and related angle discretization and boundary condition handling issues are discussed. A CMRT based MOC code-PEACH is developed and tested against C5G7 MOX benchmark problem. Numerical results demonstrate that PEACH can give excellent accuracy for both k
eff and pin power distribution for neutron transport problem.