Three kinds of STS304-Zr alloys were fabricated by varying the Zr content, and their microstructure and fracture properties were analyzed. Moreover, we performed heat treatment to improve their properties and studied their microstructure and fracture properties. The microstructure of the STS304-Zr alloys before and after the heat treatment process consisted of α-Fe and intermetallics: Zr(Cr, Ni, Fe)2 and Zr6Fe23. The volume fraction of the intermetallics increased with an increasing Zr content. The 11Zr specimen exhibited the lowest hardness and fine dimples and cleavage facets in a fractured surface. The 15Zr specimen had high hardness and fine cleavage facets. The 19Zr specimen had the highest hardness and large cleavage facets. After the heat treatment process, the intermetallics were spheroidized and their volume fraction increased. In addition, the specimens after the heat treatment process, the Laves phase (Zr(Cr, Ni, Fe) 2) decreased, the Zr6Fe23 phase increased and the Ni concentration in the intermetallics decreased. The hardness of all the specimens after the heat treatment process decreased because of the dislocations and residual stresses in α-Fe, and the fine lamellar shaped eutectic microstructures changed into large α-Fe and spheroidized intermetallics. The cleavage facet size increased because of the decomposition of the fine lamellarshaped eutectic microstructures and the increase in spheroidized intermetallics.