Uranium dioxide (UO2) is the most common fuel material in commercial nuclear power reactors. UO2 has the advantages of a high melting point, good high-temperature stability, good chemical compatibility with cladding and coolant, and resistance to radiation. The main disadvantage of UO2 is its low thermal conductivity. During a reactor’s operation, because the thermal conductivity of UO2 is very low, for example, about 2.8 W/m-K at 1000 oC [1], there is a large temperature gradient in the UO2 fuel pellet, causing a very high centerline temperature, and introducing thermal stresses, which lead to extensive fuel pellet cracking. These cracks will add to the release of fission product gases after high burnup. The high fuel operating temperature also increases the rate of fission gas release and the fuel pellet swelling caused by fission gases bubbles. The amount of fission gas release and fuel swelling limits the life time of UO2 fuel in reactor. In addition, the high centerline temperature and large temperature gradient in the fuel pellet, leading to a large amount of stored heat, increase the Zircaloy cladding temperature in a lost of coolant accident (LOCA). The rate of Zircaloy-water reaction becomes significant at the temperature above 1200 oC [2]. …