A thermal plasma system was used for the preparation of nanosized SiC powder. First SiC was synthesized by solid-state reaction using waste silicon and activated carbon powders and then plasma processing was carried out to form nanosized SiC. Phase and structural analysis was carried out by X-ray diffraction which confirmed the formation of SiC in both cases. Plasma treatment did not show any kind of change in structure and phase of SiC; except little free silicon. Morphological investigation showed the formation of 20-30 nm spherical SiC particles after plasma treatment which was initially 1-5 mu m. It was found that DC current played an important role in the reduction of particle size. It was proposed that nanosized SiC was formed due to the dissociation of grains from their grain boundary due to strong plasma gas stream.