The pulsed source method has been used to measure the thermal neutron diffusion parameters of zircaloy-2 hydride whose approximate composition is ZrH1.7. The asymptotic decay constant (zeroth energy eigenvalue) has been measured for the buckling range 0.03 < B2 < 0.39 cm−2 and has been fitted by a polynomial containing terms to B8. The first energy eigenvalue has been measured over the range 0.05 < B < 0.39 cm−2 and has been used to estimate the thermalization time constant. In addition the thermalization time constant has also been determined from time dependent transmission measurements with 1 /υ absorbers.