Irradiation of 20mg of natural $Dy(NO_3)_3$ in a neutron flux of $2{ imes}10^{13}n/cm^2$ sec for 4 hours gave 5.76 Ci of $^{165}Dy$(specific activity, 610mCi/mg Dy) with high radionuclidic purity (>99.9 %). $^{165}Dy-MA$ was prepared in a quantitative yield by reacting the aqueous solution of $^{165}Dy(NO_3)_3$ with sodium borohydride solution in 0.2N NaOH. Coulter particle analyzer exhibited mean particle size of $2.6{mu}m$ (range $1{sim}6{mu}m$), Even though the $^{165}Dy-MA$ suspension in saline was stored at $37^{circ}C$ for 24 hours or autoclaved at $121^{circ}C$ for 30minutes, there was no significant change in particle size and leakage problem indicating the prepared $^{165}Dy-MA$ is sufficiently stable. In-vivo retention studies were carried out by administering $^{165}Dy-MA$ into the knee joint space of normal rabbits. Gamma camera analysis showed high retention in joint space of normal rabbits. Gamma camera analysis showed high retention in joint space even at 24 hours after administration (> 99.9%). The ease with which the $^{165}Dy-MA$ can be made in the narrow size range and their high invitro and vivo stability make them attractive agents for radiation synovectomy.