Delayed hydride cracking in the Zircaloy alloy has been considered as a possible degradation mechanism of spent nuclear fuel cladding in interim dry storage. Some recent in-core fuel failures indicated that a long axial crack developed in the cladding was a secondary failure by delayed hydride cracking. The aim of this study is to define the effects of hydride reorientation on the failure of Zircaloy cladding. Different hydride orientations, the amount of zirconium hydride and various cracking types, all have been considered for their effects on the crack growth and stability of the cladding, and have been thoroughly discussed in this paper. A finite element computer code, ANSYS, has been used in conjunction with the strain energy density theory. In summary, the crack propagation will be aggravated if the hydride orientation is shifted from the circumferential to the radial direction. For a larger crack length, the zirconium hydride plays an important role in affecting the crack growth because the strain energy density factor increases as the hydride approaches the crack tip. Furthermore, when thermal effects are considered, a compressive stress exists at the inner side of the cladding, while a tensile stress is found at the outer side of cladding, thus resulting in crack propagation from the outer side to the inner side of the cladding. These findings are in accordance with other experimental results in related literature.