The sag behaviour of a simulated nuclear fuel element during high-temperature transients has been investigated in an experiment utilizing an internal indirect heating method. The major motivation of the experiment was to improve understanding of the dominant mechanisms underlying the element thermo-mechanical response under loss-of-coolant accident conditions and to obtain accurate experimental data to support development of 3-D computational fuel element models. The experiment was conducted using an electrically heated CANDU fuel element simulator. Three consecutive thermal cycles with peak temperatures up to ≈1000 °C were applied to the element. The element sag deflections and sheath temperatures were measured. On heating up to 600 °C, only minor lateral deflections of the element were observed. Further heating to above 700 °C resulted in an element multi-rate creep and significant permanent bow. Post-test visual and X-ray examinations revealed a pronounced necking of the sheath at the pellet-to-pellet interface locations. A wall thickness reduction was detected in the necked region that is interpreted as a sheath longitudinal strain localization effect. The sheath cross-sectioning showed signs of a “hard” pellet–cladding interaction due to the applied cycles. A 3-D model of the experiment was generated using the ANSYS finite element code. As a fully coupled thermal mechanical simulation is computationally expensive, it was deemed sufficient to use the measured sheath temperatures as a boundary condition, and thus an uncoupled mechanical simulation only was conducted. The ANSYS simulation results match the experiment sag observations well up to the point at which the fuel element started cooling down.