This article investigated the impact of intergranular hydride precipitation on the mechanical behavior of zirconium (Zr) bi-crystals using molecular dynamics (MD)-based simulations. Uniaxial tensile tests were conducted to explore the effects of hydride precipitation on symmetric and asymmetrical tilt grain boundaries (GBs) of Zr with [0 1‾ 10] as the tilt axis. The stress-strain curves and deformation governing mechanism of bi-crystalline Zr were analyzed using the MD-based simulations in conjunction with the COMB force field. Misfit stress and tensile stress degradation induced by hydride precipitation were evaluated to understand their correlation with GB misorientation angles. Hydride precipitation induced the residual stresses in the vicinity of GB plane and mitigates the overall mechanical properties. It was predicted from the simulations that GBs with low misfit stress develop a lower mismatch between the lattice of Zr and hydride precipitate. Consequently, the effect of hydride on the tensile strength gets nullify. In contrast, the effects of hydrides are more pronounced on the tensile strength of Zr containing low-energy GBs in conjunction with high-misfit stress. The study further reveals that intergranular hydride precipitation causes the hydride embrittlement effect in Zr bicrystals, which intensifies with large size hydride precipitate. These findings contribute to an atomistic-level understanding of intergranular hydride-induced embrittlement and its correlation with Zr grain boundary orientation.