The Indian research reactor APSARA, which uses HEU based UAl₃ fuel dispersed in aluminium matrix, is to undergo core conversion to LEU based U₃Si₂ dispersoid in aluminium matrix fuel. Work has been initiated at BARC, to prepare uranium silicide (U₃Si₂) compound using powder processing route in place of vacuum induction melting or arc melting route. This paper describes the preparation flow-sheet of the U₃Si₂ dispersoid by an innovative powder processing route with uranium metal powder and silicon powder as starting materials.