Hot-isostatic pressing has been applied to Zirconium plate fabricated using the ultrasonic additive manufacturing (UAM) technique to enhance interfacial bond quality. Specimens heated to 800 C for 1 h at 100 MPa pressure showed grain growth across many prior foil-to-foil interfaces, thereby increasing foil adhesion. In addition to the material softening induced by a loss of Hall-Petch strengthening, premature failure of specimens loaded parallel to the build direction was observed. Premature specimen failure was attributed to the local delamination at prior foil-to-foil boundaries where grain growth was pinned by Ti impurities introduced during the UAM process via the interaction between a Ti-alloy buffer foil and the welded Zr-foils underneath. In addition, the presence of Ti along select foil interfaces resulted in the nucleation and growth of secondary (Zr,Ti)(Fe,Cr) laves phases during higher-temperature thermomechanical processing. Using a combination of micro-scale X-ray computed tomography, fractography, and in-situ digital image correlation, the effect of defects along prior foil-to-foil boundaries was revealed as delamination-assisted plasticity accelerated specimen failure in preferred tensile orientations. These findings underscore the importance of impurity control when optimizing weld quality of higher-strength material systems using ultrasonic welding.