Microstructure and texture evolution in commercial-purity Zr 702 during cold rolling and annealing was investigated by optical microscopy, transmission electron microscopy, and X-ray diffraction. The results showed that crystallographic slip was the predominant deformation mechanism in the early stage of deformation. Deformation twins started to form when the rolling reduction was larger than 38.9%; both the dislocation density and the number of twins increased with increasing rolling reduction. The initial texture of the Zr 702 plate consisted of the basal fiber component. During cold rolling the strength of the basal fiber first decreased and then increased with increasing rolling reduction. The cold-rolled sheets were fully recrystallized after being annealed at 550°C. The recrystallization temperature and the size of recrystallized grains decreased with increasing rolling reduction. A larger rolling reduction resulted in a higher grain growth rate when the annealing temperature increased from 550°C to 700°C. The recrystallization texture was characterized by a major basal fiber and a minor $$\{ 01\bar 13\} < 2\bar 1\bar 10 >$$ component. The strength of the recrystallization texture increased with increasing rolling reduction.