Low thermal transport behavior along the radial direction of nuclear fuel pellets and pellet-cladding mechanical interaction significantly impact fuel performance and the safety of current nuclear energy systems. Here we report a new strategy of advanced fuel design in which highly thermally-conductive and mechanically-robust graphene nanoplatelets are incorporated into UO2 fuel matrix to improve fuel thermal-mechanical properties. The 2D geometry of the graphene nanoplatelets enables a unique lamellar structure upon fuel consolidation by spark plasma sintering. The thermal conductivity along the radial direction of the sintered fuel pellets at room temperature reaches 12.7 and 19.1 wm-1K-1 at 1 wt.% and 5 wt.% loadings of the graphene nanoplatelets, respectively, representing at least 74% and 162% enhancements as compared to pure UO2 fuel pellets. Indentation testing suggests great capability of the 2D graphene nanoplatelets to deflect and pin crack propagation, drastically improving the crack propagation resistance of fuel matrix. The estimated indentation fracture toughness reaches 3.5 MPa·m1/2 by 1 wt.% loading of graphene nano-platelets, representing a 150% improvement over 1.4 MPa·m1/2 for pure UO2 fuel pellets. Isothermal annealing of the composite fuel indicates that the graphene nano-platelet is able to retain its structure and properties against reaction with UO2 matrix up to 1150 °C.