This paper addresses certain key feasibility issues facing the application of SiC-matrix microencapsulated fuels for light water reactor application. Issues addressed are the irradiation stability of the SiC-based nano-powder ceramic matrix under LWR-relevant irradiation conditions, the presence or extent of reaction of the SiC matrix with zirconium-based cladding, the stability of the inner and outer pyrolytic graphite layers of the TRISO coating system at this uncharacteristically low irradiation temperature, and the state of the particle–matrix interface following irradiation which could possibly affect thermal transport. In the process of determining these feasibility issues microstructural evolution and change in dimension and thermal conductivity was studied. As a general finding the SiC matrix was found to be quite stable with behavior similar to that of CVD SiC. In magnitude the irradiation-induced swelling of the matrix material was slightly higher and irradiation-degraded thermal conductivity was slightly lower as compared to CVD SiC. No significant reaction of this SiC-based nano-powder ceramic matrix material with Zircaloy was observed. Irradiation of the sample in the 320–360°C range to a maximum dose of 7.7×1025n/m2 (E>0.1MeV) did not have significant negative impact on the constituent layers of the TRISO coating system. At the highest dose studied, layer structure and interface integrity remained essentially unchanged with good apparent thermal transport through the microsphere to the surrounding matrix.