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After the Fukushima-Daiichi event, there has been notable progress in developing accident-tolerant fuel (ATF) cladding designs to improve light-water reactor (LWR) safety features. In this regard, the Zirconium alloy (Zircaloy) has significant advantages in enhancing the neutron economy, and its unique beneficial characteristics establish it as a reliable and promising material for ATF claddings in the present era. Depositing protective coatings of different interlayer diffusion metals over Zircaloy-based nuclear fuel claddings is becoming increasingly popular as a near-term solution. This strategy can enhance the ability of cladding to withstand accident scenarios, reduce the oxidation rate at high temperatures, and provide additional benefits during both usual and accidental conditions. Current research efforts have strategically prioritized the development of ATF cladding concepts to improve nuclear fuel safety in normal, transient, and potential accidental situations. Herein, we present a comprehensive review of the current research and development events related to the design, manufacturing techniques, and various performance characteristics of chromium (Cr) coated Zircaloy-cladding ATF materials. These materials can improve both the reactor's economics and protection level. Our discussion focuses on these methods for enhancing safety performance in LWRs. In addition, the report provides a prospective viewpoint on future research accomplishments related to these materials.