The effects of temperature, time at temperature, and cooling rate on the tensile and corrosion properties of Zircaloy 2 were studied. It was found that both tensile and corrosion properties were dependent upon cooling rate and when discussing the other variables, a cooling rate must be specified. In general, above 1700 F the yield strength increased and the ultimate strength decreased. Ductility decreased with increasing heat treatment temperature above 1450 F. Cooling Zircaloy 2 at a rate greater than 90 F per min resulted in satisfactory corrosion resistance, whereas cooling at a rate less than that caused decreased corrosion resistance. Corrosion resistance of slowly cooled material decreased with increasing temperature above 1500 F.