Baddeleyite (ZrO2) is widespread in lunar basalts and frequently used for U‐Pb geochronology of magmatic and impact events. The formation of baddeleyite involves two primary mechanisms: (a) crystallization from late‐stage magma, and (b) decomposition of zircon under high‐temperature (high‐T) conditions. Baddeleyite with distinct formation mechanisms commonly displays different morphologies. In a Chang'e‐5 lunar basalt, we report baddeleyite with two different morphologies, termed “singular type” and “aggregate type.” Petrographic and crystallographic analyses were conducted on both types of baddeleyite to understand their formation conditions and evolution processes. Despite the similarity in the morphology and mineral assemblages between the aggregate type baddeleyite and zircon decomposition products, the petrographic characteristics and the rarity of zircon in lunar basalts tend to suggest that both types of baddeleyite are derived from magma crystallization. Crystallographic relationships observed in both types indicate a phase transformation from the precursor tetragonal‐ZrO2/cubic‐ZrO2 or orthorhombic‐ZrO2 phase. Two potential scenarios are proposed for the formation of these microstructures: (a) direct crystallization of high symmetry ZrO2 from magma, and (b) crystallization of baddeleyite from magma followed by a high‐pressure (high‐P) event causing its phase transition. However, due to unresolved scientific issues in both scenarios, an accurate evolutionary process cannot currently be determined. Therefore, extensive thermodynamic experiments are necessary to enhance our understanding of baddeleyite microstructures as indicators of P‐T processes, providing insights into magmatism and the impact history of planetary bodies.