• Mechanical tests of hydrided Zircaloy-4 and Zr-Nb alloy with Ring Compression Test. • EBSD analyses on texture of reactor-grade hydrided Zircaloy cladding tubes. • Abrupt ductile to brittle transition at 560 and 490 wppm for Zr-4 and Zr-Nb alloy. • Larger grain size of Zr-4 reduces interlink of inter-granular hydrides. • Reduced hydride interlink increases hydride embrittlement resistance. In the spent fuel storage phase, nuclear fuel cladding is subjected to increased embrittlement owing to a large amount of hydride precipitation. This study compares the differences in the hydrogen-induced cladding embrittlement of cold work stress-relief annealed (CWSR or SRA) Zircaloy–4 and Zr-Nb alloy cladding with ring compression test at the temperature of the spent fuel pool, which is approximately 40 °C. Experiments demonstrate that an abrupt ductile to brittle (DTB) transition occurs at the critical hydrogen content of 560 and 490 wppm for Zircaloy-4 and the tested Zr-Nb cladding tubes, respectively. Even beyond the critical hydrogen content, sufficiently high cladding ductility with the offset strain >10% is maintained up to ∼ 90 MWd/kgU for both cladding materials on the rod-average basis. Extensive EBSD analyses coupled to thermodynamic modeling demonstrate that this is primarily due to the slightly larger grain diameter of Zircaloy-4 tube, which reduces the number of available sites for inter-granular hydride precipitation. Reduced inter-granular hydride precipitation prevents the extent of hydride interlink, thereby improving the hydride embrittlement resistance. Nevertheless, the tested Zr-Nb alloy cladding presents an extened discharge burnup limit for abrupt DTB transition owing the reduced in-core cladding oxidation rate. The presented understanding of microstructural effect on hydride interlink and resulting embrittlement may provide a basis for understanding the general hydride embrittlement phenomena of Zircaloy cladding which include, but not limited to, wet storage, dry storage, and post-accident ductility of high burnup Zircaloy cladding.