The research reactor DIORIT at the Paul Scherrer Institute was decommissioned in 1993 and is now being dismantled. One of the materials to be conditioned is activated reactor graphite, approximately 45 tons. A cost effective conditioning method has been developed. The graphite is crushed to less than 6 mm and added to concrete and grout. This graphite concrete is used as matrix for embedding dismantling waste in containers. The waste containers that would have been needed for separate conditioning and disposal of activated reactor graphite are thus saved. Applying the new method, the cost can be reduced from about 55 SFr/kg to about 17 SFr/kg graphite.