The stability, diffusivity and clustering behaviour of defects in uranium diboride (UB 2) was investigated in light of the potential application as a burnable absorber in nuclear fuel. UB 2 was found to accommodate limited deviations from stoichiometry, which should be a consideration when manufacturing and operating the material. Self-diffusivity of both U and B was found to be sluggish (10 −14 cm 2 /s for B and 10 −19 cm 2 /s for U at 2000 K) and highly anisotropic, with migration along the basal planes being orders of magnitude faster than c-axis migration. The anisotropy of defect migration (both interstitials and vacancies) is predicted to hinder recombination of defects produced by collision cascades, thus limiting the radiation tolerance of the material. Boron and uranium vacancies exhibit a drive to cluster. Boron vacancies in particular, which are mobile on basal planes, are predicted to cluster into strongly bound di-vacancy, which in turn are less mobile. These are then predicted to grow into larger two-dimensional vacancy clusters on the B plane, leading to anisotropic swelling. We provide an analytical expression to predict the stability of these clusters based on purely geometrical considerations. Finally, the accommodation of Li, He and Xe onto vacancy clusters was considered. Li appears to stabilise the structure upon U depletion, while the retention of He and Xe appears to rise with increasing B depletion, through the formation of vacancy clusters.