The measurement of coincidence counting rate at the peak of the angular correlation curve shows a considerable difference between the recovery behaviour of coldworked Zr-0.5 Nb alloy from that reported for pure zirconium. This difference in behaviour illustrates the point-defect activity during the course of isochronal annealing in this alloy. The recovery spectrum can be understood in terms of the vacancy-solute entrapment upto about 250°C. In the next stage the release and clustering effects of vacancies are indicated prior to their elimination. The study thus demonstrates the effect of alloying element on the defect mobility and associated point defect interactions in Zr.