The TRISO (tristructural isotropic) coated fuel particle is made of a uranium oxide kernel coated with three layers of pyrolytic carbon and one of silicon carbide. This fuel, originally used in High Temperature Reactors, has been proposed as accident tolerant fuel for Light Water Reactors after the accident in Fukushima. Although this fuel is capable of retaining fission products within the particle up to 1600°C, little is known on the origin of this temperature limit. Therefore, in order to increase the safety of this type of fuel, it is necessary to understand the origin of the degradation of the materials that compose this fuel. We have studied the effect of temperature on the microstructure and diffusion of silver in pyrolytic carbon coatings produced by fluidized bed chemical vapor deposition. Samples were heat treated at 1000°C, 1400°C and 1700°C for 200 hrs. under inert atmosphere. The effect of temperature on the microstructure and silver diffusion behavior were analyzed by Raman spectroscopy, X-Ray diffraction, optical microscopy, SEM and TEM. We observed that the microstructure of PyC changed drastically above 1400°C, showing the increase in anisotropy and the re-orientation of the graphene planes. The diffusion of silver appears to be also correlated with this change in microstructure.