  We study the effect of squark generation mixing on gluino production and
decays at LHC in the Minimal Supersymmetric Standard Model (MSSM) for the case
that the gluino is lighter than all squarks and dominantly decays into three
particles, $gl -> q qbar neut_k, gl -> q qbar' char_l$. We assume mixing
between the second and the third squark generations in the up-type and
down-type squark sectors. We show that this mixing can lead to very large
branching ratios of the quark-flavour violating gluino three-body decays
despite the strong constraints on quark-flavour violation (QFV) from the
experimental data on B mesons. We also show that the QFV gluino decay branching
ratios are very sensitive not only to the generation mixing in the squark
sector, but also to the parameters of the neutralino and chargino sectors. We
show that the branching ratio of the QFV gluino decay $gl -> c tbar (cbar t)
neut_1$ can go up to ~ 40%. Analogously, that of the QFV decay $gl -> s bbar
(sbar b) neut_1$ can reach ~35%. We find that the rates of the resulting QFV
signatures, such as $pp -> t t cbar cbar E_T^mis$, can be significant at LHC.
This could have an important influence on the gluino searches at LHC.
