The effect of various process variables on the powder properties of recycled $U_3O_8$ from MnO-$Al_2O_3$ doped large grain $UO_2$ pellets and the effect of those recycled $U_3O_8$ powders on the sintered density and grain size of MnO-$Al_2O_3$ doped large grain $UO_2$ pellets have been investigated. The evolution of morphology, size, and BET surface area of the recycled $U_3O_8$ powders according to the respective variation of the thermo-mechanical treatment variables of oxidation temperature, powder milling, and sequential cyclic heat treatment of oxidation and then reduction was examined. The correlation between the BET surface area of recycled $U_3O_8$ powder and the sintered pellet properties of MnO-$Al_2O_3$ doped pellets showed that the pellet density and grain size of doped pellets were increased and then saturated by increasing the BET surface area of the recycled $U_3O_8$ powder. The density and grain size of the pellets were maximized when the BET surface area of the recycled $U_3O_8$ powder was in the vicinity of $3m^2/g$. Among the process variables applied in this study, the cyclic heat treatment followed by low temperature oxidation was a potential process combination to obtain the sinter-active $U_3O_8$ powder.