Abstract: To address the problem that coarse spherical Zr-2.5Nb powders (100-300 μm) produced by the plasma rotating electrode process (PREP) cannot be directly used for additive manufacturing and that effective recycling approaches are lacking, vacuum hot pressing (VHP) was used to densify the coarse powders at 800°C, 850°C, 900°C, and 950°C. The effects of hot-pressing temperature on the microstructure and mechanical properties of the alloy were systematically investigated, with emphasis on the temperature range near the α→β phase-transformation temperature. The results show that the sample processed at 800 °C exhibits fine equiaxed α grains but limited ductility due to residual sintering pores. At 850 °C, close to the phase-transformation critical point, the low β-phase fraction during thermal holding allows the fine-grained microstructure to be retained after cooling, thereby achieving an excellent strength-ductility trade-off (ultimate tensile strength of 494 MPa, total elongation of 27.7%, and uniform elongation of 10.21 %). In contrast, coarse Widmanst?tten α colonies form in the samples processed at 900 and 950 °C after cooling, resulting in a simultaneous decrease in strength and ductility. Fractographic analysis reveals that the fracture mode changes from defect-dominated ductile fracture via micro-void coalescence at low temperatures to mixed dimple-cleavage fracture at high temperatures. This work clarifies the microstructural evolution of coarse PREP powders near the phase-transformation critical temperature and provides an experimental basis and technical reference for the high-value recycling of waste coarse Zr-Nb powders.