In this study, a Cr-CrN-Cr coating was fabricated on Zr alloys to restrain the Cr-Zr interdiffusion of Cr-coated Zr alloys. The early stage diffusion, decomposition, and oxidation behaviors of the coating sample are investigated by a tube furnace equipped with a “fast-in & fast-out” tool. The outer and inner Cr layer was transferred into Cr2N by nitrogen, which was formed by the decomposition of the CrN layer. A Zr2N layer formed at the interface between the residual coating and Zr substrate, which acted as a diffusion barrier. After oxidation in a steam environment, the coating structure can be divided into Cr2O3, CrN, Cr2N, and Zr2N (from outside to inside).