The Fukushima nuclear accident in Japan highlighted the susceptibility of zirconium alloy fuel claddings. Exposure to high temperatures caused the cladding to react rapidly with steam, resulting in the release of hydrogen and subsequent explosions. These events led to significant radioactive leakage, posing substantial risks to public and environmental safety. To mitigate these risks, accident-tolerant fuel claddings have been proposed as a replacement for traditional zirconium alloy claddings. In recent years, research has focused on developing accident-resistant cladding materials domestically and internationally. FeCrAl alloys have emerged as key materials for medium- and long-term fuel cladding solutions because of their exceptional resistance to high-temperature steam corrosion and superior performance under irradiation. Significant progress has been made in the screening of alloy compositions, the optimization of processing methods, and the evaluation of service performance. Full-scale FeCrAl tubes have progressed to the critical stage of neutron irradiation tests. This paper comprehensively reviews nuclear-grade FeCrAl alloys and evaluates their performance under normal and accident conditions. This review examines the uniform and stress-corrosion behavior of FeCrAl alloys in high-temperature water, the factors influencing these properties, and their oxidation performance in high-temperature steam. The paper also summarizes the impact of irradiation on the alloy’s microstructure and mechanical properties, highlighting the role of irradiation in accelerating uniform and stress corrosion. This analysis provides significant insights into the service performance of FeCrAl alloys and offers valuable knowledge to support their continued optimization as enhanced, accident-tolerant fuel cladding materials.