This paper deals with the $Si_3N_4$-bonded SiC refractory in terms of its microstructure development during nitridation. When mixture of SiC grains and fine Si power is fired under nitrogen atmosphere, an interlocking network of $Si_3N_4$ whiskers is formed by nitridation of Si. It is found that the strength of $Si_3N_4$-bonded SiC refractory is soley due to the physical nature of this interlocking whiskers. At the initial stage of nitridation, $Si_3N_4$ whisker forms in very thin and long shape and, with further nitridation, it becomes thicker with diameters up to 0.35$mu extrm{m}$. It is found that the mechanical strength of $Si_3N_4$-bonded SiC refractory depends on the degree of nitridation and the development of microstructure.