A reactivity insertion accident (RIA) is a design basis accident in which reactivity is rapidly injected as a result of a control rod ejection or blade drop scenario. The resultant power increase can result in fuel rod failure and subsequent release of radioactive material into the reactor’s primary system. For light water reactors, failure under RIAs is typically a result of fuel melt, pellet-cladding interaction, or rod over-pressurization. Fuel melt occurs when the fuel system is unable to transport heat out of the fuel system. Pellet-cladding interaction occurs when an aggressive fuel pellet expansion pushes on an embrittled cladding beyond its strain limit. Rod over-pressurization occurs when a fuel rod exceeds the critical heat flux and departs from nucleate boiling, causing the rod internal pressure to rapidly increase, exceeding the systems pressure, and balloon until it bursts. To prevent failure, regulators have developed safety requirements that limit the injected enthalpy based on the state of the fuel system. However, dispersed fuel could enable the removal or relaxation of regulator-imposed safety criteria. Dispersed fuel embeds fuel particles in a highly conductive metal. Dispersed particles can have a particle radius of 1 µm to greater than 100 µm. Traditional fuel systems are plagued by poor thermal conductivity, especially at higher burnups, thus reducing the ability of the fuel system to respond to an RIA. However, dispersed fuel could improve the ability of the fuel system to transport injected energy away from the fissile material and into the coolant more efficiently. Additionally, dispersing the fuel particles mitigates hard contact that typically occurs in the traditional zirconium-uranium dioxide fuel system, thus removing pellet-cladding mechanical interaction as a potential failure mechanism. This paper evaluates fuel particles dispersed in a metal matrix using the BISON fuel performance code to develop an initial failure threshold based on melt temperature of the fuel particle and/or cladding material as a function of fission density for beginning-of-life and end-of-life conditions. BISON results show that (1) reducing the size of the particles allows fission density to increase as a function of time, (2) particle-to-particle proximity must be considered to evaluate the limiting conditions, and (3) improving the fuel particle thermal conductivity improves thermal performance.