The formation of titanium diboride ($TiB_2$ ) via the reduction of $TiO_2$ with boric oxide and carbon was studied in a partially reducing atmosphere of argon mixed with 4 vol.%H2. The effect of reaction time, temperature, partial pressure of nitrogen and $TiO_2/B_2_O3$ stoichiometric ratio on the reducibility of oxides has been studied. The phases formed were analysed by using X-ray rowder diffraction and scanning sosctron microscopic techniques. In this paper, we also investigated the presence of $CaC_2$ as a reducing agent on the reducibility of oxide mixtures and on the Ti-B-C-Ca-O phase equilibria. The morphology of $TiB_2$ formed in the presence of $CaC_2$ is compared with the microstructure of $TiB_2$ formed as a consequence of carbothermic reduction. The observed variation in $TiB_2$ crystals formed is also explained.