The present study is aimed at investigations on the structural and microstructural characterization and hydrogenation behaviour of Zr substituted Fe1-xZrxTi1.3 (x = 0.2) alloys. This storage alloy has been synthesized using R.F.induction melting under an argon atmosphere in a previously outgassed graphite crucible. The structural characterization (XRD) has revealed that the as-synthesized sample is multiphasic in nature and embodies the phases FeTi, Fe2Ti, FeTi2 and Ti. Microstructural evaluations (SEM) exhibited the presence of interfaces and cracking. The P-C isotherm was determined and it showed the storage capacity of similar to 1.20 wt.% at 200 degrees C. The activation as well as desorption kinetics (75% desorption of H-2 in 6 min) were found to be better for Zr-substituted alloy (Fe0.8Zr0.2Ti1.3) as compared to FeTi1.3. The improved activation and desorption kinetics are thought to be due to presence of several interfaces e.g. Fe(Zr)Ti/Fe(Zr)Ti-2, Fe(Zr)Ti/{Fe(Zr)}(2)Ti and volume expansion induced cracking of Ti.