We present a mechanism for the crystalline silicate production associated with the formation and subsequent destruction of massive fragments in young protostellar disks. The fragments form in the embedded phase of star formation via disk fragmentation at radial distances ga 50-100 AU and anneal small amorphous grains in their interior when the gas temperature exceeds the crystallization threshold of ~ 800 K. We demonstrate that fragments that form in the early embedded phase can be destroyed before they either form solid cores or vaporize dust grains, thus releasing the processed crystalline dust into various radial distances from sub-AU to hundred-AU scales. Two possible mechanisms for the destruction of fragments are the tidal disruption and photoevaporation as fragments migrate radially inward and approach the central star and also dispersal by tidal torques exerted by spiral arms. As a result, most of the crystalline dust concentrates to the disk inner regions and spiral arms, which are the likely sites of fragment destruction.