In order to determine the threshold stress intensity factor and critical hydride length for delayed hydride cracking in Zr-2.5Nb pressure tube alloy, the distribution of normal stress in the plastic zone of crack tip by the developed method that combines theory calculation with extended finite element method (XFEM) was improved. The fracture process of two-phase composites containing Zr-2.5Nb and hydride precipitate was simulated by XFEM. Based on that, critical hydride length LC corresponding to the theoretical model for K1H was estimated. Meanwhile, to illustrate the validity of theoretical and numerical methods, recent theoretical models and experimental measurements were utilized to verify the results of this paper. The theoretical model of DHC was improved to estimate the critical hydride length corresponding to threshold stress intensity factor. The predicted value of critical hydride length is close to the experimental values.