The fully ceramic microencapsulated (FCM) fuel, one of the accident tolerant fuel (ATF) concepts, consists of TRISO particles randomly dispersed in SiC matrix. This high heterogeneity in compositions leads to difficulty in explicit thermal calculation of such a fuel. For thermal analysis of a fuel element in very high temperature reactors (VHTRs) which has a similar configuration to the FCM fuel, a two-temperature homogenized model was proposed by the authors. The model was developed using particle transport Monte Carlo method for heat conduction problems. It gives more realistic temperature profiles and provides the fuel-kernel and graphite temperatures separately. In this paper, we apply the two-temperature homogenized model to single-channel thermal analysis of the FCM fuel element for steady- and transient-states using 2-D FEM/1-D FDM hybrid method. The results of analyses are compared to those of conventional UO 2 fuel having the same geometric dimension and operating conditions.