Hydrogen in excess of solid solubility precipitates as hydride phase of plate shaped morphology in hcp α-Zr with the broad face of the hydride plate coinciding with certain crystallographic plane of α-Zr crystal called habit plane. The objective of the present investigation is to predict the habit plane of δ-hydride precipitating in α-Zr at 298 K using strain energy minimization technique. The δ-hydride phase is modeled to undergo isotropic elasto-plastic deformation. The α-Zr phase was modeled to undergo transverse isotropic elastic deformation but isotropic plastic deformation. Accommodation strain energy of δ-hydride forming in α-Zr crystal was computed using initial strain method as a function of hydride nuclei orientation. Hydride was modeled as disk with round edge. Contrary to several habit planes reported in literature for δ- hydrides precipitating in α-Zr crystal, the total accommodation energy minima at 298 K suggests only basal plane i.e. (0001) as the habit plane.