The effect of Cu on the microstructure and corrosion behavior in 360°C lithiated water was investigated on Zr–xCu alloys (x = 0.05, 0.2, and 1.0, wt%), with remelted pure Zr as reference material. The results revealed that the tetragonal Zr2Cu phase was induced by Cu addition higher than 0.2 wt% and its size and number density were increased with the increase of Cu content. The weight gain and oxide thickness were decreased by Cu addition, but when the Cu content increased to 1.0 wt%, they were both significantly increased and even larger than that of remelted Zr. It was supposed that structural defects, such as pores and microcracks, in the oxide film may result in such degradation in the corrosion property of Zr–1.0Cu alloy.