Due to flow induced vibration caused by coolant circulation, fretting corrosion inevitably occurs between fuel cladding, heat exchanger tubes and their holders in Gen IV lead-bismuth eutectic (LBE) cooled nuclear reactors. In the current work, fretting corrosion behavior of 316 L steel in oxygen-saturated LBE at 500 °C has been investigated. It is shown that within the gross slip regime, the microstructure under fretting interface presents a stratified structure, composed of third body layer, oxide scales and plastic deformation layer. At the early stage of fretting corrosion, the dominant damage mechanism is fretting wear, showing that the thickness of third body layer is much larger than that of oxide scale. As fretting time increases, the dominant damage mechanism is gradually changed to LBE corrosion and fretting wear together, as the visible oxide scale is formed next to the third body layer. Moreover, the growth rate of oxide scales under fretting interface is accelerated by over an order of magnitude compared to that when 316 L steel exposed to LBE directly. In particular, after 60 h exposure, the thicknesses of oxide scale related to the worn and unworn regions are ∼4.5 μm and ∼0.2 μm, respectively. The occurrence of such phenomenon is thought to be ascribed to the severe plastic deformation under fretting contact interface, since the crystal defects served as perfectional nano-channels can promote the diffusivity of oxygen atoms. In addition, the acceleration diffusivities of oxygen atoms caused by the local high contact stress may also be responsible for this matter.