The development and use of a single-fluid two-temperature approximated 2-D MagnetoHydrodynamics code is reported. Z-pinch dynamics and the evolution of Magneto-Rayleigh-Taylor (MRT) instabilities in a gas jet type Extreme Ultraviolet (EUV) source are investigated with this code. The implosion and stagnation processes of the Z-pinch dynamics and the influence of initial perturbations (single mode, multi-mode, and random seeds) on MRT instability are discussed in detail. In the case of single mode seeds, the simulation shows that the growth rates for mm-scale wavelengths up to 4 mm are between 0.05 and 0.065 ns À1 . For multi-mode seeds, the mode coupling effect leads to a series of other harmonics, and complicates MRT instability evolution. For perturbation by random seeds, the modes evolve to longer wavelengths and finally converge to a mm-scale wavelength approximately 1 mm. MRT instabilities can also alter the pinch stagnation state and lead to temperature and density fluctuations along the Z axis, which eventually affects the homogeneity of the EUV radiation output. Finally, the simulation results are related to experimental results to discuss the mitigations of MRT instability. V C 2013 AIP Publishing LLC.