The effects of Fe addition on the precipitate characteristics and out-of-pile corrosion behavior of Zr-1Nb-xFe alloys, with x=0, 0.2 and 0.4 respectively, were investigated. The experimental results showed that the alloy with the composition of Zr-1Nb-0.4Fe had the best corrosion resistance and the alloy with the composition of Zr-1Nb-0.2Fe had the worst corrosion resistance. The relationship between the corrosion behavior and the microstructures including precipitate characteristics was discussed, and the elements contents, area fraction, as well as the mean diameter of the precipitate were analyzed. The β-Nb precipitate was found in Zr-1Nb alloy, both Zr (Nb,Fe)2 precipitate and β-Nb precipitate were formed in Zr-1Nb-0.2Fe alloy, while only Zr (Nb,Fe)2 precipitate was observed in Zr-1Nb-0.4Fe alloy. It has been found that the size of precipitates increased with the increasing of Fe content. This work indicated that the Fe content dominates the crystal structure, volume fraction and the element contents of the precipitate, which affect the corrosion resistance of Zr alloy.