This project is underway in cooperation with AECL to develop the CANDU advanced fuel bundle (so-called, CANFLEX) which can enhance reactor safety and fuel economy in comparison with the current CANDU fuel and which can be used with natural uranium, slightly enriched uranium and other advanced fuel cycle. As the final schedule, the advanced fuel will be verified by carrying out a large scale demonstration of the bundle irradiation in a commercial CANDU reactor, and consequently will be used in the existing and future CANDU reactors in Korea. The research activities during this year Out-of-pile hydraulic tests for the prototype of CANFLEX bundle was conducted in the CANDU-hot test loop at KAERI. Thermalhydraulic analysis with the assumption of CANFLEX-NU fuel loaded in Wolsong-1 was performed by using thermalhydraulic code, and the thermal margin and T/H compatibility of CANFLEX bundle with existing fuel for CANDU-6 reactor have been evaluated. (Author).