The paper studies structure, mechanical properties, and deformation behavior of ultrafine-grained Zr-2.5Nb alloy obtained via pressing with the change of deformation axis and gradual temperature decrease. Formation of ultrafine-grained structure in Zr-2.5Nb alloy is found to result in the increase in its yield strength and ultimate strength, decrease in values of uniform deformation and deformation to failure, as well as simultaneous rise in the tendency to plastic strain localization at macrolevel within the temperature range of 293–673 K.The paper studies structure, mechanical properties, and deformation behavior of ultrafine-grained Zr-2.5Nb alloy obtained via pressing with the change of deformation axis and gradual temperature decrease. Formation of ultrafine-grained structure in Zr-2.5Nb alloy is found to result in the increase in its yield strength and ultimate strength, decrease in values of uniform deformation and deformation to failure, as well as simultaneous rise in the tendency to plastic strain localization at macrolevel within the temperature range of 293–673 K.