The Global Threat Reduction Initiative Program continues to develop existing and new test reactor fuels to achieve the maximum attainable uranium loadings to support the conversion of a number of the world's remaining high-enriched uranium fueled reactors to low-enriched uranium fuel. Currently, the program is focused on assisting with the development and qualification of a fuel design that consists of a uranium-molybdenum (U-Mo) alloy dispersed in an aluminum matrix. Thermal conductivity is an important consideration in determining the operational temperature of the fuel and can be influenced by interaction layer formation between the dispersed phase and matrix, porosity that forms during fabrication of the fuel plates or rods, and upon the concentration of the dispersed phase within the matrix. This paper develops and validates a simple model to study the influence of interaction layer formation, dispersed particle size, and volume fraction of dispersed phase in the matrix on the effective conductivity of the composite. The model shows excellent agreement with results previously presented in the literature. In particular, the thermal conductivity of the interaction layer does not appear to be as important in determining the effective conductivity of the composite, while formation of the interaction layer and subsequent consumption of the matrix reveals a rather significant effect. The effective thermal conductivity of the composite can be influenced by the dispersed particle distribution by minimizing interaction layer formation and preserving the higher thermal conductivity matrix.