Pilgered two-phase Zr-2.5 Nb was subjected to recovery (400 °C) and recrystallization (700 °C) annealing – broad objective was to bring out associated microstructural developments. Effects of recovery and recrystallization were indexed in terms of changes in hardness, lattice strain, stored energy of cold work
and residual stress. Though recovery did not cause significant changes in grain/ phase structure; visible coarsening of 2nd phase was associated with recrystallization. Such coarsening continued even after the completion of primary recrystallization, with concurrent and noticeable changes in microstructure and in crystallographic texture.