Abstract: An improved composition and method is provided for preventing or alleviating lost circulation during the drilling of wellbores in subterranean formations, and particularly during the drilling of oil and gas wells. The method is suited for horizontal and directional wells as well as more vertical wells. The composition of the invention comprises a synergistic blend of resilient, angular, carbon-based material and a water-swellable, crystalline synthetic polymer. The method employs the composition of the invention in preventing lost circulation.