Two irradiated boiling water reactor fuel rods with breached cladding were exposed to argon and to air at 598 K for 7.56 Ms (2100 h). These tests were conducted to determine fuel swelling and cladding crack propagation under conditions that promote UO2fuel oxidation and to observe the behavior of water-logged breached fuel in an inert gas environment. The two rods were selected for testing after extensive hot cell examination had shown the cladding of both rods to be breached with several centimetres of open cracks; the cracks were characterized in detail before the test. As part of the experiment, the amount of the readily removable water contained in the fuel rods was determined. To oxidize the fuel to a significant level (∼10%), the air in the annealing capsule was replenished approximately daily. The depletion of oxygen available in the air capsule due to fuel oxidation occurred in ∼0.036 Ms (10 h). At the end of the test period, ∼6% of the fuel is estimated to have oxidized. Posttest examination of the rods showed that cladding degradation resulted from swelling due to oxidation of the fuel in the air environment. The cladding degradation was localized and fuel oxidation did not measurably extend beyond the cladding breach. No cladding degradation was measurable in the breached fuel rod tested in argon.