Good fuel element performance, characterized by a low fraction of failed coated particles, is crucial for radiation dose and effluent control, as well as safe and economical operation of HTR NPP. The failure of coated particles primarily stems from the manufacturing process of the fuel elements and their operation within the reactor. In terms of design, the HTR-PM has set limits on the fraction of coating failures during the manufacturing and operation of fuel elements. Previous irradiation tests have demonstrated that laboratory-scale manufactured HTR-PM fuel elements have very low free uranium content (on the order of 10−6), and no coated particle fractures occurred during irradiation. Although the fuel elements used in the HTR-PM core continue to use the previous manufacturing processes and process parameters, the risks of quality fluctuations are significantly increased during large-scale continuous production. A series of manufacturing quality control measures have been summarized and proposed to further reduce the free uranium content in fuel elements. An analysis method suitable for HTR-PM fuel element damage has been explored and established. During operation, the overall damage condition of the fuel elements can be qualitatively judged by measuring the trend of total γ activity changes in the primary coolant. By sampling and analyzing the primary coolant and measuring the activity of noble gas isotopes such as krypton and xenon, the fraction of failed coated particles and the type of damage can be quantitatively analyzed. Based on the operating conditions of the fuel elements, corresponding operational strategies can be formulated and fed back to the manufacturing plant to promote further improvements in manufacturing quality.