The invention presented herein relates to a niobium-containing zirconium alloy for use in nuclear fuel cladding. The Zr alloy of this invention with superior corrosion resistance is characterized as comprising an alloy composition as follows:1) niobium (Nb), in a range of 0.8 to 1.2 wt. %; one or more elements selected from the group consisting of iron (Fe), molybdenum (Mo), copper (Cu) and manganese (Mn), in a range of 0.1 to 0.3 wt. %, respectively; oxygen (O), in a range of 600 to 1400 ppm; silicon (Si), in a range of 80 to 120 ppm; and the balance being of Zr,2) Nb, in a range of 1.3 to 1.8 wt. %; tin (Sn), in a range of 0.2 to 0.5 wt. %; one element selected from the group consisting of Fe, Mo, Cu and Mn, in a range of 0.1 to 0.3 wt. %; O, in a range of 600 to 1400 ppm; Si, in a range of 80 to 120 ppm; and the balance being of Zr,3) Nb, in a range of 1.3 to 1.8 wt. %; Sn, in a range of 0.2 to 0.5 wt. %; Fe, in a range of 0.1 to 0.3 wt. %; one element selected from the group consisting of chromium (Cr), Mo, Cu and Mn, in a range of 0.1 to 0.3 wt. %; O, in a range of 600 to 1400 ppm; Si, in a range of 80 to 120 ppm; and the balance being of Zr, and4) Nb, in a range of 0.3 to 1.2 wt. %; Sn, in a range of 0.4 to 1.2 wt. %; Fe, in a range of 0.1 to 0.5 wt. %; one element selected from the group consisting of Mo, Cu and Mn, in a range of 0.1 to 0.3 wt. %; O, in a range of 600 to 1400 ppm; Si, in a range of 80 to 120 ppm; and the balance being of Zr.