A program is in progress for the design of a zirconium base alloy for steam service as nuclear fuel cladding. Thirty-one alloys selected for study of corrosion rate, hydriding rate and hydrogen embrittlement are in test. The corrosion testing of 1800 coupons to 3000 hours at at 300, 400, and 500 degrees C in refreshed steam has been completed. Statistical data analysis of the corrosion results are reported and alloys showing better corrosion performance at all test temperatures than that for Zircaloy-1 are discussed. Preliminary data for hydrogen uptake after long exposures at 400 and 500 degrees C are presented; the uptake for alloys showing the best corrosion performance is discussed. Post-corrosion mechanical property measurements are also reported along with the preliminary results of x-ray diffraction and metallographic studies relating to hydrogen embrittlement. A wide variation in resistance to embrittlement at a given hydrogen level was observed and can be tentatively correlated with original ductility, crystallographic texture, and hydride platelet orientation. The testing of a second round of ten alloys is also in progress. Studies concerning the mechanism of corrosion and hydriding in zirconium alloy are also reported. The results of recent neutron activation analyses of stripped corrosion films are …