A new method for fabricating nitride-based fuels for nuclear applications is under development at the Idaho National Laboratory (INL). A primary objective of this research is the development of a process that could be operated as an automated or semi-automated technique reducing costs, worker doses, and eventually improving the final product form. To achieve these goals the fabrication process utilizes a new cryo-forming technique to produce microspheres formed from sub-micron oxide powder to improve material handling issues, yield rapid kinetics for conversion to nitrides, and reduced material impurity levels within the nitride compounds. The microspheres are converted to a nitride form within a high temperature particle fluidizing bed using a carbothermic process that utilizes a hydrocarbon hydrogen - nitrogen gas mixture. A new monitor and control system using differential pressure changes in the fluidizing gas allows for real-time monitoring and control of the spouted bed reactor during conversion. This monitor and control system can provide real-time data that is used to control the gas flow rates, temperatures, and gas composition to optimize the fluidization of the particle bed. The small size (0.5 mm) of the oxide powders in the microspheres dramatically increases the kinetics of the conversion process yielding reduced process times and temperatures. Initial studies using surrogate ZrO2 powder have yielded conversion efficiencies of 90 -95 % nitride formation with only small levels of oxide and carbide contaminants present. Further studies are being conducted to determine optimal gas mixture ratios, process time, and temperature range for providing complete conversion to a nitride form.