Titanium oxycarbide can be used as a soluble anode to produce sponge titanium in USTB or MER molten salt electrolysis process. However, the key factor of these two processes is to prepare oxycarbide with appropriate C/O ratio and at a low cost as well. This work reported a simple method of preparing titanium oxycarbide from TiO2 in C-H2 system. Based on the prediction of thermodynamic calculations, titanium oxycarbide was prepared successfully at 1400 °C with the molar ratio of TiO2 to carbon exceeding 1:2, and the ideal electrolytic anode (TiC0.5O0.5) was produced at 1400 °C (with a ratio of 1:3 of TiO2 to carbon). Number of parameters (carbon content, temperature, sample's mass, additive (Fe element), and with ball milling treatment) were considered and discussed in the current study. Furthermore, this method can reduce not only the reaction temperature and time, but also the emission of carbon dioxide.