A novel three-step process is used to fabricate submicron silicon carbide powders in this paper. The commercially available silicon powders and phenolic resin are used as raw materials. In the first step, precursor powders are produced by coating each silicon powder with phenolic resin shell. Then, precursor powders are converted into carbonized powders by decomposing the phenolic resin shell. The submicron silicon carbide powders are formed in the reaction of silicon with carbon during the third step of thermal treatment. Scanning electron microscopy (SEM), energy dispersive X-ray spectroscopy (EDX), X-ray diffraction (XRD) and thermogravimetric (TG) analyses are employed to characterize the microstructure, phase composition and free carbon content. It is found that the sintered powders consist of Ξ²-SiC with less than 0.2 wt.% of free carbon. The particle size of the obtained silicon carbide powders varies from 0.1 to 0.4 ΞΌm and the mean particle size is 0.2 ΞΌm. The silicon carbide formation mechanism of this method is based on the liquid-solid reaction between liquid silicon and carbon derived from phenolic resin. The heat generated during the reaction leads to great thermal stress in silicon carbide shell, which plays an important role in its fragmenting into submicron powders.