Abstract: A method for fabricating a composite cladding comprised of a moderate-purity metal barrier of zirconium metallurgically bonded on the inside surface of a zirconium alloy tube which improves corrosion resistance. The improved corrosion resistance of the liner is accomplished by suitable heat treatment of the Zircaloy-zirconium composite cladding to allow diffusion of alloying elements, notably Fe and Ni, from the Zircaloy into the zirconium, in particular, to the inner surface of the zirconium liner. This diffusion anneal reduces the undesirable tendency of zirconium liner to oxidize rapidly.