Lack of uranium resources in the earth and increasing consumption of this precious substance, make it essential to search for the optimal use of it. In this regard, to extend the fuel cycle and control the excess reactivity of the reactor of alternative fuels such as gadolinium fuel is used. The project aims is to produce ceramic UO 2 -Gd 2 O 3 fuel pellets as an alternative fuel for the reactor fuel. In this regard, the UO 2 powder produced by the AUC method was chosen and because of the only difference between the building of the UO 2 -Gd 2 O 3 fuel pellets with conventional fuel is in the preparation of the initial powder, so the UO 2 powder preparation phase along with 8% weight of gadolinium oxide on the basis of experiments designed with three multi-step method of mixing, milling and granulation was performed. At this stage, the uniform distribution of gadolinium oxide into uranium dioxide powder was considered and the most desirable results for powder prepared by mixing a multi-stage procedure along with 2 hours of milling was obtained. After preparing the powder, to optimize table pressing conditions during the production of raw table, two methods of presses at constant pressure and fixed raw density were studied, that the results of both methods showed that the different press conditions had not much difference on the specifications pellets, and the continuation of the project to press density between 53-54% of theoretical density was done. Produced raw tablets to achieve a final density were sintered in a furnace with heat cycle and different atmosphere, and parameters heating rate, retention time at 1700 and also furnace atmosphere was evaluated at this stage of the process ang at the end of this stage, heating rate of 3 degrees per minute and 4 hours residence time in reducing atmosphere to achieve desired table was selected from physical properties and high density view. At the end, with the production of the gadolinium fuel pellets under optimum conditions at every stage, fuel pellets with 9.927 grams per cubic centimeter density (91% theoretical density) were obtained that according to the existing evidence of this amount is approved. Key words: Fuel pellet, Uranium dioxide, Gadolinium powder and reactor WWER-1000.