The invention is related to nuclear technologies, in particular, to the technology of producing nuclear oxide fuel for fuel elements, this oxide fuel can be used for manufacturing palletized nuclear fuel from uranium dioxide to be consumed by NPPs. The essence of the invention: this method of producing palletized nuclear fuel from uranium dioxide involves preparation of uranium dioxide moulding powder with/without uranium oxide, at this point powdered uranium dioxide is used as a raw material for preparation of moulding powder. Powdered uranium dioxide should be in the following proportion: O/U=2.37±0.04, it is obtained using a renowned method—by air heating of powdered uranium dioxide (ceramic grade) with the following proportion O/U=2.01−2.15. The technical result of the invention is increased mechanical strength of sintered pellets and a larger grain size of sintered pellets.