This invention provides a hydrogen occluding alloy exhibiting high absorption/desorption rates, and excellent initial activation, the alloy having a composition comprising, by wt %, 25% to 45% of Zr, 1% to 12% of Ti, 10% to 20 % of Mn, 2% to 12% of V, 0.5% to 5% of at least one rare earth element, preferably comprising La and/or Ce, optionally 0.1% to 4% of Hf, and a balance being Ni (25% or more of Ni) and unavoidable impurities. The alloy has a structure comprising: a main phase made of a Zr--Ni--Mn based alloy, numerous cracks, and a regenerated phase made of rare earth element-Ni type alloy, the regenerated phase being exposed on the surfaces of the cracks, as well as electrodes made of the alloy.