Fully ceramic microencapsulated (FCM) fuel is a proposed fuel type for improved accident performance in LWRs (Light Water Reactors) that involves TRISO (TRistructural-ISOtropic) particles embedded in a nano-powder sintered silicon carbide (SiC) matrix. The TRISO particles contain a spherical fuel kernel ranging from 500 to 800 µm in diameter. The kernel and buffer layer are then coated with three layers, each of which is 30–40 µm thick, composed of dense inner pyrolytic carbon (IPyC), chemically vapor deposited silicon carbide (SiC) layer, and an outer pyrolytic carbon (OPyC) layer. These TRISO particles are then embedded in a fully dense sintered SiC matrix with an expected particle packing fraction of about 35–40% by volume. As is the case for gas reactor applications, the release of radioactivity into the coolant is dependent on the integrity of the silicon carbide layer of the TRISO particles, in addition to the SiC matrix. In this work, we report on fuel performance modeling of TRISO-bearing FCM fuel using the BISON code to simulate the thermo-mechanical behavior of this fuel in a prototypic LWR environment. This paper considers the effects of embedding a TRISO particle in the SiC pellet matrix and includes a discussion of the irradiation-induced dimensional change in the pyrolytic carbon (PyC) layers of the TRISO particle. Additionally, methods were developed to simulate a FCM pellet containing a large number of discrete and independent particles. Future work will report on developing an interface debonding model, a fracture model, and a radionuclide transport model.