The out-of-pile mechanical performance and microstructure of recrystallized Zr-1.5 Nb-S alloy was investigated. The strength of the recrystallized Zr-1.5Nb-O-S alloys was observed to increase with the addition of sulfur over a wide temperature range, from room temperature up to $300^{circ}C$. A yield drop and stress serrations due to dynamic strain were observed at room temperature and $300^{circ}C$. Wavy and curved dislocations and loosely knit tangles were observed after strained to 0.07 at room temperature, suggesting that cross slip is easier. At $300^{circ}C$, however, dislocations were observed to be straight and aligned along the slip plane, suggesting that cross slip is rather difficult. At $300^{circ}C$, oxygen atoms are likely to exert a drag force on moving dislocations, intensifying the dynamic strain aging effect. Oxygen atoms segregated at partial dislocations of a screw dislocation with the edge component may hinder the cross slip, resulting in the rather straight dislocations distributed on the major slip planes. Recrystallized Zr-Nb-S alloys exhibited ductile fracture surfaces, supporting the beneficial effect of sulfur in zirconium alloys. Oxidation resistance in air was also found to be improved with the addition of sulfur in Zr-1.5 Nb-O alloys.