Continuing the discussion of Part I, this article deals with the engineering implications of power reactor fuel problems, based on the Japan Atomic Power Co.'s investigation on light-water reactor fuel technology for its Tsuruga Power Station. The problem of reconciling economic requirements with technical and material limitations, to produce a workable and reliable fuel design, is a difficult task requiring a large amount of background knowledge and experience. Specific points taken up in this article include: Reliability of available basic UO2 data, zircaloy corrosion and hydrogen pick up, fabrication cost considerations in design optimization, mechanical design including vibration problems, fretting corrosion due to spacer design, burn-out considerations, and various modes of possible fuel failure. The main purpose of these to articles on the fuels for the Tokai and Tsuruga Stations has been to point out the practical engineering considerations involved in power reactor fuels, with account taken of the current interests in Japan for fuel fabrication.