Pilger rolling process has a specific influence on the mechanical properties and texture of zirconium alloy cladding tube. Due to its complexity, experimental research on the Pilger rolling process would be very costly. Therefore, a 3D finite element model was built to simulate Pilger rolling with ABAQUS/standard package. Simulation of a full pass of Pilger rolling of Zr-4 alloy tube, including a series of forward strokes and backward strokes, was carried out. The predicted tube sizes agree well with the experimental results. Additionally, the simulated rolling force also matches well with the force calculated by classic empirical formula, which validates the accuracy of the proposed model. The simulation results show that the stress and strain states in groove-side are different from that in groove-bottom. Moreover, large shear deformation happen in the rolled tube. The simulated shear strain displays substantial fluctuations during rolling, which are attributed to the cyclic position change of element (material point) with respect to the groove-side.