The application of graphite flakes in refractory castables was inhibited by their poor water-wettability, and carbides modified graphite was considered as the best way to solve this problem. Aimed to solve the high cost, difficulty in scalable fabrication, and unclear synthesis mechanism in the preparation process of carbide-modified graphite, a core-shell SiC@ graphite powder was fabricated in air by a modified molten salt shielding technique in this work. Influence of encapsulation method on the phase composition and microstructure of as-obtained SiC@C powders was investigated. The results show that SiC@C powders can be fabricated via modified molten salt shielding method. The as-prepared SiC@C powders possess better water-wettability, dispersibility and oxidation resistance. The microstructural characteristic of SiC@C powders is indicated a core-shell structure, SiC layer is formed on graphite flake. The template-growth mechanism is dominant in molten salt synthesis process, i.e., a small amount of Si is dissolved in the molten salt, diffused onto the graphite surfaces via a molten salt medium, and then reacted to form in-situ SiC coating layer on graphite flake, which is controlled due to the external diffusion of element Si.