The application of zirconium alloy in nuclear reactors is supported by its excellent performance and corrosion resistance, but under the action of high-energy neutrons, the atoms in the lattice will change, resulting in the accumulation of lattice defects and the evolution of the microstructure, which not only affect the strength and shape of the material but also affect the tensile resistance, impact resistance and other mechanical properties of the zirconium alloy. Common industrial processes for the preparation of nuclear-grade zirconium sponges are discussed, the advantages, disadvantages and applications of the main production processes are summarised, and the characteristics of irradiation-induced loops are comprehensively examined, encompassing their formation mechanisms, interactions with dislocations, and the range of potential microscopic defects during irradiation. In addition, the phenomena of irradiation growth and irradiation creep and their relationship with microstructure evolution are also discussed. The effect of oxidative corrosion under irradiation has also been explored. Specifically, irradiation can aggravate the corrosion process of zirconium alloy and lead to the thickening of the corrosion layer, but the specific degree of influence is closely related to the working temperature and irradiation conditions. The comprehensive study of zirconium alloy under irradiation conditions aims to provide a scientific basis for the future design of long-life and high-reliability nuclear reactor materials and support the sustainable development of the nuclear industry.