First, make sure you're running (rcirc-notify-add-hooks) in your config.
It seems that rcirc-notify simply does not allow itself to work when `window-system'window-system is nil. So if you are running emacs in a terminal, it will never notify you.
You can get around this with some advice:
(defadvice rcirc-notify (around spoof-window-system activate) (let ((window-system 'spoof)) ad-do-it)) (defadvice rcirc-notify-keyword (around spoof-window-system activate) (let ((window-system 'spoof)) ad-do-it)) (defadvice rcirc-notify-private (around spoof-window-system activate) (let ((window-system 'spoof)) ad-do-it)) The internals of these functions do a (when window-system ... ) which is the problem, so you can simply fake a window-system when calling those functions, and they should work for you.