Nickel as a trace element was added into zirconium alloy (Zr-4) and then alloy sheet samples were prepared. The microstructure, corrosion property, and hydrogen content of the Zr-4 alloy were studied. Results show that the steam corrosion resistance at 400 °C can be greatly improved by adding nickel from 0.001wt% (the content in the sponge zirconium) to 0.005wt%, and there is no obvious effect on hydrogen absorption property. Trace nickel addition increases the content of the second phase particles in the form of Zr(Fe, Ni)₂ obviously, and promotes the aggregation of silicon around second phase particles, which can prevent or delay the oxidation of fine particles. In addition, zirconium tubes (Φ63.5 mm×10.92 mm) with the same alloy component also exhibit excellent nodular corrosion resistance and uniform corrosion resistance.