The characteristics of dry and wet milled powder prepared by 1 cycle OREOX (oxidation and reduction of oxide fuels) treatment were investigated using the simulated spent fuel pellet. Sintered pellets simulating spent nuclear fuel burned in reactor were fabricated from $UO_2$ powder using as a starting material in fabrication of nuclear fuel. The 1 cycle OREOX-treated powder was prepared by only one path of oxidation md reduction of the simulated pellet. Powder having average particle size of less than 1 $mu extrm{m}$ could be easily obtained by dry milling, but not be achieved by wet milling. And, specific surface area of dry milled pow-der was higher than that of wet milled powder. Dry milled powder formed loose agglomerate, while wet milled powder showed the shape of irregular and angular particles. Dry milled powder provided higher green density, resulting in higher sintered density of higher than 95% TD and average grain size of larger than 8 $mu extrm{m}$ satisfying the standard specification of sintered pellets.